Greetings from the community foundation!
2025 has been an interesting year, to say the least. At the community foundation, we are honored to work with hundreds of donors and charities across our region to increase charitable giving, connect with causes that are important to our community’s quality of life, and lead the way to fill critical needs. Our community is always generous, and this year has been no exception.
Here’s what we’re focused on as year-end giving ramps up:
–For many charities, the shrinking donor base has exacerbated an already challenging fundraising climate. We’re happy to offer a few tips to help you engage your current donors and, importantly, welcome your new donors with open arms.
–Be sure you’re up to speed on the opportunities presented under new tax laws for your donors to maximize charitable giving in 2025. This is a unique window of opportunity, and the community foundation is happy to serve as a sounding board.
–We completely understand how daunting it can be to add yet one more thing to your already busy workload. Still, legacy giving is not one of those things that can be shoved to the side. Check out our tips for making it easy to integrate legacy giving strategies into everything else you’re doing.
Many thanks for the opportunity to work together! We look forward to a successful final quarter of 2025. It is our honor to work alongside you as we strive to engage donors to make a difference in the community we all love.
–Your community foundation
THIS MONTH’S
TRENDING TOPICS
What fewer donors means to your mission
by Staff Name, Director of Charitable Giving
If you’ve been in a fundraising role for a while, you might have observed that your donor list has been shrinking in recent years. It is not your imagination! Even in 2024, a year of record-breaking total giving, the donor base itself is declining. Two decades ago, approximately two-thirds of U.S. households made charitable donations annually; today, that number has dropped to under half. This means that although certainly total gift volume can grow, it is often driven by a smaller core of high-net-worth donors, leaving more organizations competing for a shrinking base of everyday givers.
So how should you address this shift toward “top-heavy philanthropy”? Here are a few suggestions:
Keep talking about impact
Despite–or perhaps in light of–the recent whirlwind of commentary about new federal laws and the implications for the charitable deduction and charitable giving, it is really important to keep in mind that for most individuals, the decision to give is driven by deeply personal factors–such as compassion, moral obligation, empathy, or a belief in a cause—rather than financial incentives. So keep talking about impact and how your organization is improving the quality of life in our region!
Step up your stewardship game
It is important not only to focus relationship building on your long-term, major donors, but also on your newest donors–even if those new donors are giving just a small amount. Many donors start small and may be testing you out. A new donor is always cause for celebration–especially in today’s climate. Consider developing a simple framework laying out the steps to engage a new donor, starting with adding the donor to your email list, of course, followed perhaps by personal outreach via multiple channels of communication that don’t necessarily involve an ask. If you build the relationship up front, bigger dollars are more likely to follow later.
Lean into complexity
The increased standard income tax deduction certainly has been a factor in the declining number of donors since 2017. With so many fewer people itemizing their income tax deductions, tax benefits are no longer the nudge they used to be to encourage people to give to charity. But that doesn’t mean you should give up staying current on tax planning techniques involving charitable giving. Many high-net worth donors and high-income earners who still itemize deductions are very philanthropic and may be open to establishing formal charitable giving plans to support favorite organizations including yours. The community foundation is happy to work with you and your donors on gifts of closely-held business interests, real estate and other complex assets, so when you encounter a potential opportunity, don’t say no. Reach out to our team!
Thank you for all you do for our region! The community foundation is honored to be your partner.
High-income donors: Why 2025 is big for charitable giving
by Staff Name, Director of Charitable Giving
The fourth quarter is upon us, and you’re no doubt gearing up for year-end giving initiatives. This is always a busy time! Indeed, the 2025 giving season is particularly important because new tax laws have created a window of opportunity and increased awareness about charitable giving in general among your donors and the general public.
Here’s what you need to know–and do:
High-income donors should consider giving more this year
What to know
Starting in 2026, taxpayers who itemize income tax deductions will be eligible to deduct charitable contributions only to the extent that they exceed 0.5 percent of the taxpayer’s adjusted gross income. In addition to this floor, the new tax laws impose a cap on charitable deductions beginning next year such that even your donors who are in the 37% income tax bracket will be eligible to deduct charitable contributions only up to the 35% level. This means donors who accelerate giving in 2025 may capture tax value that will be harder to access later.
What to do
To lean into this opportunity, consider adding messages to your email newsletters, year-end talking points, and other materials along the lines of this: “Do you itemize deductions on your income tax return? Talk with your tax professional about the advantages of increasing your charitable giving in 2025 before the laws change in 2026. We are grateful for your support!”
Appreciated stock is still an excellent gift
What to know
The new tax laws brought a lot of changes, but don’t forget about the longstanding charitable giving strategy of giving appreciated stock. 2025 has been a strong year for many stocks, and it’s likely that your donors are holding appreciated securities. Donors often need to be reminded that they can give stock held for more than one year to a public charity, such as your organization, and potentially avoid capital gains tax.
What to do
Be sure to include language in your year-end giving materials reminding donors that your organization can accept gifts of stock, such as: “Remember, appreciated stock is often a far more tax-effective gift to charity than cash. Consult your tax advisor to see how this might work for you, and please reach out to our team to arrange for a gift before year-end. We appreciate your support!”
Qualified Charitable Distributions are ever-important
What to know
The rules for Qualified Charitable Distributions (“QCDs”) are not directly affected by the new tax laws. QCDs remain a powerful charitable giving tool for your donors who are over the age of 70 ½. Your donors might be concerned or confused that the QCD rules have changed alongside other rules for charitable giving, so it is worth reassuring them that each taxpayer who is 70 ½ or older can give up to $108,000 (2025 limit) to a public charity (such as your organization) directly from an IRA and the distribution won’t be included in adjusted gross income.
What to do
Consider including language in your year-end newsletters and other materials about QCDs, such as: “Are you over the age of 70 ½? Do you own an IRA? If so, a Qualified Charitable Distribution may be a great way to support your favorite charities. Check with your tax advisor, and give us a call! We would be honored to receive your gift in the form of a QCD.”
As always, the team at the community foundation is here to help! Please reach out anytime!
Legacy giving: A simple plan to get started
by Staff Name, Director of Charitable Giving
You and your team no doubt understand how transformational bequests and legacy gifts can be for your organization. In 2024, total charitable giving in the United States reached $592.5 billion, according to the Giving USA 2025 report. The total amount given through bequests alone was $45.8 billion, representing approximately 8% of all charitable donations for the year.
Indeed, it is essential to cultivate not only general giving—annual, major, and campaign gifts—but also legacy giving. A variety of philanthropy sources help build your organization’s resilience and sustainable funding base.
Focusing on legacy or planned giving can feel daunting when your team is already juggling annual appeals, capital projects, events, and major donor cultivation work. If you break it down into manageable steps and integrate legacy giving themes into what you are already doing, however, implementing a legacy giving plan becomes much more achievable.
Consider these ideas:
–A simple first step is to lightly embed legacy language into your materials. Take a little time to review your marketing and donor communications, including webpages, brochures, one-pagers, and appeal packets, and make sure each mentions the opportunity for donors to support your future through legacy gifts.
–On your website, especially on your “Ways to Give” and “About” pages, be clear about your endowment or reserve fund, if you have one, or simply highlight a few of the options for structuring legacy gifts alongside general giving to support your organization in the future.
–Each email newsletter or regular donor update should include a short reminder that donors can leave a lasting legacy through a bequest, IRA beneficiary designation, or other planned gift.
–Even in annual or capital campaign letters that ask for current support, it is worth briefly mentioning that your organization is also open to conversations about legacy gifts. Over time, you can experiment with different ways of presenting the information, from a short “Did you know” line to a small boxed call-out, to see what resonates best with your audiences.
–Integrate legacy topics into your conversations with donors at all levels of giving. These conversations are often focused on what impact can be achieved right now, but they can also include a discussion of what a donor’s legacy gift to your organization might accomplish in the future.
–If you are building an endowment, such as through a fund at the community foundation, describing endowment gifts as a way to ensure lasting support for programs helps donors understand the long-term value of their generosity. Many donors do not naturally think about the business side of nonprofit sustainability, so it can be eye-opening for them to learn how endowment and reserve funds help your organization weather economic ups and downs.
–Stewardship is also key: donors who commit to legacy gifts should be recognized and thanked, whether through a legacy society, added to a list in your annual report, or being invitated to special events.
–Stories are powerful tools for sparking interest. Sharing examples—when permission is granted—of donors who have made legacy gifts and the difference those gifts have made for your organization can inspire others.
By incorporating legacy and planned giving themes into your regular communications, donor conversations, and storytelling, you can create a balanced fundraising strategy that builds both annual support and long-term stability. Asking for a legacy gift does not need to feel like a rare, high-pressure conversation; instead, legacy gifts can become a natural option for loyal donors who want to see your work thrive for generations.
The team at the community foundation is happy to serve as a sounding board as you develop and strengthen both your annual giving and your legacy giving to ensure that your mission continues to deliver lasting, transformative impact—today and well into the future. Thank you for all you do.
This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.