Greetings from the community foundation!
We appreciate the opportunity to work with so many amazing nonprofit partners across our region! We’re hearing from many of you that 2026 is shaping up to be a year that calls for close attention to tax laws because some have changed and some haven’t. This shifting landscape reinforces the need to stay on top of trends and development, adopt clear terminology with your board of directors and donors, and lean on the community foundation team for endowments, planned giving, and complex donor situations.
—Planned giving doesn’t have to feel overwhelming—or solitary. The community foundation can support your team, from complex gift assistance to board education and donor messaging. We’re happy to share examples of the ways we serve as your resource.
—“Planned giving.” “Legacy giving.” “Stewardship.” These phrases are common in our sector—but not always clear to donors and board members. Stay on top of essential terminology and strive to adopt simple ways to communicate more clearly. This will help you build stronger donor relationships rooted in understanding rather than jargon.
—Several tax law changes took effect in 2026, and donors are hearing about them from their advisors. Be sure you know what’s changed, what hasn’t, and what it means for your fundraising strategies. In turn, you can confidently respond to donor questions, know when to refer them to their tax advisors, and position giving opportunities effectively throughout the year.
Thank you for the opportunity to work together! Please reach out anytime you encounter a planned giving challenge, an opportunity to accept a major gift, or the need to invest your endowment or reserve funds. We are here for you!
—Your community foundation
THIS MONTH’S
FEATURED ARTICLES
Your planned giving partner: Five ways the community foundation can help
As our region’s home for charitable giving, the community foundation works with hundreds of families, individuals, businesses, civic leaders, and nonprofit organizations to help grow philanthropy, connect donors to causes they care about, and lead on critical community issues. At the heart of making a difference are the many nonprofit organizations who meet the needs of thousands of people every single day in hundreds of different ways.
As a nonprofit professional, you and your colleagues may already be very familiar with the community foundation’s grant programs. We’re grateful for the generosity of so many donors who have made these grant programs possible. You might also be familiar with the community foundation’s services for managing nonprofit reserve funds and endowment funds. We are honored to do so!
What you might not be familiar with, however, are the ways that the community foundation can help bolster your efforts to secure your donors’ legacy gifts and other planned gifts.
Here are five ways we can help.
Regular updates on charitable giving trends
The community foundation is committed to sharing tips, insights, and trends related to tax laws, complex charitable giving, and donor motivations. We know it’s hard to keep a finger on the pulse of the many developments swirling around charitable giving. Our team keeps a close eye on what’s happening, curates the highlights, and passes it along so that you stay in the know. (This newsletter is one example!)
Messaging for your marketing assets
For nonprofits who have established an endowment or reserve fund at the community foundation, our team is happy to provide sample language describing how donors can make a gift. Offering resources ranging from sample bequest language to reminders about gifts of appreciated stock, the community foundation can help equip you with the fundamental tools you need to position your fund for growth.
Assistance with complex gifts
Real estate. Closely-held business interests. Charitable remainder trusts. These types of gifts can feel intimidating. The community foundation team works on complex charitable gifts on a regular basis. We can help evaluate opportunities in collaboration with a donor’s legal and tax advisors. In many cases, the community foundation can serve as a vehicle for receiving and administering gifts of hard-to-value assets so that the proceeds ultimately support your mission.
Education for your board of directors
Planned giving becomes much more manageable when everyone shares a basic understanding of the terminology and opportunities. We understand that your board of directors does not work in the area of charitable giving every day, and many concepts may be unfamiliar. We are happy to make a brief presentation during your regular board meeting to reinforce the importance of planned giving to your overall fundraising strategy, as well as clarify how the community foundation works with individuals, families, businesses, and nonprofits.
Alternative gift structures
From time to time, you may encounter a donor who wants to support your organization but does not wish to make an outright gift. The community foundation offers designated funds that allow a donor to set aside assets to benefit your organization over time. The community foundation will help achieve the donor’s intent, enabling the dollars to support your mission over the long term.
Thank you for all you do for the people in our community! We look forward to our next conversation! Please reach out anytime.
Legacy, stewardship, and planned giving: Clarifying key terms
The nonprofit sector employs a major portion of the workforce—13.6 million people in January 2025, according to one study, accounting for 8.6 percent of total nonfarm payroll employment in the United States. That’s a big number, but it’s not everyone, which means that the majority of board members and donors are not familiar with nonprofit terminology or the nuances of charitable giving.
That’s why it’s important to avoid confusing words wherever possible as you build relationships with your supporters. Jargon is everywhere, and an especially bothersome culprit is the vocabulary related to planned giving. Wherever possible, try to clarify what you mean when you’re throwing around certain terms.
Here are a few examples:
“Planned giving” simply refers to a gift that does not happen immediately. Gifts of cash or publicly-traded stock are typically considered “current” gifts because they are transferred and used right away. In contrast, a gift of real estate, a charitable remainder trust, a bequest in a will, or a beneficiary designation on a retirement account is generally considered a planned gift. These gifts are structured in advance and are realized months or years in the future.
“Legacy giving” is often used interchangeably with “planned giving,” but it technically refers more specifically to gifts that take effect upon a donor’s death. This most commonly includes bequests in a will or trust and beneficiary designations on retirement accounts, life insurance policies, or other financial assets.
“Stewardship,” which is a term you might use internally, refers to the ongoing process of engaging donors in long-term, meaningful relationships. It’s likely not a term you use with donors.
Finally, it is important to remember that both current and planned gifts can be directed to endowment. An endowment fund allows a donor’s gift—whether made today or realized in the future—to provide support for your mission for generations to come. Sometimes donors use “endowment” when they really mean a planned gift or a legacy gift.
Keep these terms in mind as you build your donor communications, prepare board presentations, and work with your colleagues. Everyone benefits from clarity.
Tax time: Old things, new things, and things you can do
As nonprofit professionals, we all know that tax season is more than a pile of paperwork! It’s a window into what donors are thinking, what their advisors are recommending, and how federal tax law may influence the timing and structure of their gifts.
You’re well aware that several key tax law changes took effect on January 1, 2026. While philanthropy is never driven solely by tax rules, these changes will shape donor conversations over the coming months. At the same time, certain tax tools and principles did not change under the new laws and remain crucial to proper planning.
Below are a handful of charitable giving tax principles that every nonprofit professional should understand at a high level—along with practical ways you can address each concept in your fundraising strategies.
New limits on itemized deductions
What’s happening?
Beginning in 2026, charitable deductions for taxpayers who itemize income tax deductions are allowed only to the extent they exceed 0.5% of adjusted gross income (AGI). In addition, the tax value of itemized charitable deductions is capped at a 35% rate, even for donors in the 37% bracket. The 60% of AGI deduction limit for cash gifts to public charities remains in place (after clearing the 0.5% floor), and gifts of appreciated assets generally remain deductible up to 30% of AGI.
What can you do?
The new limitations on charitable deductions will likely impact only a small but very important subset of your donors—those with very high incomes. Encourage those donors to talk with their tax advisors about “bundling” or “bunching” multi-year commitments into a single tax year. You can also emphasize gifts of appreciated assets, which typically offer greater overall tax efficiency than cash. Most importantly, remind donors that early coordination with their tax advisors matters more than ever. Tax season is the perfect time to start preparing for year-end giving. The months go by fast!
New above-the-line deduction for non-itemizers
What’s happening?
Starting in 2026, taxpayers who do not itemize income tax deductions may claim an above-the-line charitable deduction of up to $1,000 for single filers and $2,000 for married couples filing jointly for cash gifts to qualifying charities. This deduction reduces income before AGI is calculated, but it does not apply to non-cash gifts and does not apply to gifts to donor-advised funds.
What can you do?
This is an opportunity to re-engage small and mid-level donors who previously received no tax benefit from annual giving. It’s also an opportunity to recruit new donors, who typically start with modest levels of support. Consider messaging that highlights the new deduction in simple terms and encourages recurring or year-end cash gifts—particularly among younger households and donors early in their philanthropic journey. As always, remind donors and prospective donors to consult their tax advisors to determine how this new deduction might apply to them.
Documentation rules remain strict
What’s happening?
Gifts over $250 require written acknowledgment from the charity. Non-cash gifts valued at $500 or more require IRS Form 8283, and gifts over $5,000 generally require a qualified appraisal. While these rules are not new, heightened IRS scrutiny makes compliance especially important. Tax Court cases and IRS rulings remind us that time and again, taxpayers miss out on big deductions for failure to follow the rules.
What can you do?
Review your acknowledgment processes now to ensure receipts are timely, complete, and compliant. You may also want to proactively educate donors about appraisal requirements for real estate or closely held business interests so that complex gifts do not stall late in the year due to missing documentation, but be sure you leave the legal and tax advice to donors’ advisors. Include language in every communication to the effect that donors should consult a tax professional about how the rules apply in their unique circumstances.
QCDs are still amazing
What’s happening?
For donors age 70 ½ or older, Qualified Charitable Distributions (QCDs) from IRAs remain an especially efficient strategy. In 2026, the annual limit is $111,000 per taxpayer, and, if applicable, QCDs can satisfy required minimum distributions without increasing taxable income. Importantly, QCDs are not affected by the new itemized deduction floor or deduction caps, though they cannot be directed to donor-advised funds.
What can you do?
Make sure your communications to older donors clearly references QCDs as a tax-efficient giving option. A simple reminder in newsletters throughout the year (not only in year-end appeals)—paired with instructions to contact their tax advisor and IRA administrator early—can significantly increase these IRA gifts and help ensure that donors start the process early enough to make it happen. QCDs are complex, but they are extremely effective. It’s worth getting your head around the basics and promoting them wherever you can.
So what’s the net-net? The charitable tax landscape in 2026 is more nuanced than in prior years. Donors are hearing new terminology from their CPAs and financial advisors, and your fundraising strategy should reflect that reality. The team at the community foundation will continue to keep you informed as we watch the trends! We are honored to work with you to strengthen philanthropy across our entire community.
This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.