Greetings from the community foundation!
We are honored to work with so many organizations that are making a meaningful difference every single day in our community’s quality of life. We are always happy to share trends and strategies as you deepen your relationships with donors to support and strengthen your mission.
Caution ahead? Changes may be coming to the Form 990
Potential revisions to IRS Form 990 reporting requirements could increase expectations around transparency, governance, and financial oversight for nonprofit organizations. Learn what these developments may mean for your organization and how proactive preparation can strengthen credibility with donors, grantmakers, and community partners.
The Great Wealth Transfer: Will wishes really come true?
The transfer of wealth is already beginning to influence charitable giving trends in meaningful ways. The community foundation is happy to suggest a few ways nonprofits can prepare for increased planned giving activity, complex asset gifts, donor-advised fund grants, and multigenerational philanthropy conversations, all of which are on the rise as assets move from one generation to the next.
Loyalty wins: Keeping donors close
As donor expectations evolve, nonprofit organizations are placing greater emphasis on donor retention, trust-building, and long-term engagement. Discover practical strategies for strengthening existing donor relationships, even as you continue your new donor acquisition efforts.
Thank you for everything you do for the community we all love! We look forward to hearing from you!
—Your community foundation
THIS MONTH’S
FEATURED ARTICLES
Caution ahead? Changes may be coming to the Form 990
Nonprofit organizations have long known that the IRS Form 990 is more than just a tax filing. It is a public document that funders, donors, watchdog organizations, journalists, and community partners often review to better understand an organization’s governance, financial stewardship, and mission impact. Now, proposed changes signaled by the U.S. Department of the Treasury and the IRS could make the Form 990 even more important.
What does this mean for your organization and other nonprofits? At this stage, no immediate action is required, and nonprofit organizations are not yet facing new filing obligations. Proposed regulations are expected later this year and will likely include an opportunity for public comment before changes are finalized.
Here’s what’s important to know:
Not a total surprise
As alarming as this news may seem, it’s not entirely “new” news. In many ways, the anticipated changes reinforce trends nonprofits have already been experiencing for years, including growing expectations around transparency, documentation, governance, and financial accountability.
There’s a silver lining
Increased transparency is not all bad! Your donors and grantmakers genuinely want to understand not only where funds come from, but also how decisions are made and how dollars ultimately support mission-related work. Increased understanding among your key stakeholders is an excellent opportunity to foster deeper engagement.
Effects would be varied
Some organizations will be more affected than others. If your nonprofit receives public funding or participates in fiscal sponsorship arrangements, the proposed revisions could mean you’ll be subject to more detailed disclosures and recordkeeping requirements.
Focus on specific functions
Certain areas of nonprofit reporting may be particularly important. Treasury officials have specifically indicated interest in clearer reporting around who controls funds, how grants are administered, and how sponsored projects operate within larger charitable structures.
Importantly, none of this means that you should panic. Many organizations already have strong internal controls and reporting systems in place. Instead, this is an opportunity to take a few key steps right now:
Review internal financial reporting and documentation procedures.
Confirm that board minutes and governance policies are current and organized.
Evaluate how grants, contracts, and restricted funds are tracked internally.
Work closely with accountants, auditors, and legal counsel to stay informed as proposed rules develop.
Above all, remember that the Form 990 is a public-facing storytelling tool, not simply a compliance form. While Form 990 reporting can sometimes feel technical or burdensome, it also gives nonprofits an opportunity to communicate impact, stewardship, and organizational integrity. Strong governance and transparent reporting can strengthen credibility with funders and the broader community alike.
If you’d like to discuss how the Form 990 creates engagement and communications opportunities, please reach out! The team at the community foundation is always happy to serve as a resource and sounding board for our nonprofit partners. Thank you for all you do to make our community stronger!
The Great Wealth Transfer: Will wishes really come true?
For years, experts have talked about the coming “Great Wealth Transfer”—the massive movement of wealth expected to pass from Baby Boomers to younger generations over the next two decades.
But are you seeing it at your organization? You probably are, even if the phenomenon is not manifesting as an immediate wave of large cash gifts! Here are the nuanced trends to watch for evidence that the transfer is underway:
More donors are engaging in estate and legacy planning conversations that include charitable gifts.
Larger gifts involving appreciated assets, donor-advised funds, and planned giving vehicles are becoming more common.
Families are increasingly involving children and grandchildren in philanthropic decisions earlier than in previous generations.
Accordingly, in your donor development efforts, now is the time to focus on:
Planned giving, including estate gifts and beneficiary designations
Gifts from donor-advised funds
Gifts of complex, noncash assets
Multigenerational and family philanthropy engagement
Here are three examples of how the community foundation can support your organization as wealth changes hands:
Our team can help your organization build long-term financial stability by housing and administering your endowment or reserve fund. The community foundation’s ongoing professional investment management and back office services can help you create permanent charitable resources designed to support your mission for generations to come.
Many donors involved in the Great Wealth Transfer hold significant wealth in noncash assets such as appreciated stock, real estate, closely held business interests, retirement assets, cryptocurrency, collectibles, and other complex property. The community foundation can help you facilitate these gifts by accepting, liquidating, and administering assets that your organization may not be equipped to handle directly.
The team at the community foundation is happy to offer insights to help strengthen your organization’s planned giving efforts. Please reach out to learn about upcoming technical assistance, education, and capacity-building opportunities.
Finally, keep in mind that much of the Great Wealth Transfer is still in its relatively early stages. Baby Boomers still control a great deal of U.S. wealth, meaning a significant portion of charitable transfer activity may accelerate over the next 10–20 years as estates settle and intergenerational planning matures. We look forward to working together in the coming decades!
Loyalty wins: Keeping donors close
Nonprofits are navigating a period of rapid change. From shifting donor expectations to technological advances and evolving economic pressures, organizations are being asked to adapt faster than ever before. While these changes can feel overwhelming, they also present important opportunities for nonprofits that are willing to evolve thoughtfully and strategically.
One major trend is the growing emphasis on donor retention rather than simply focusing on new donor acquisition. Nonprofit organizations are increasingly recognizing that long-term supporters are among their most valuable assets. Donors want to feel connected to the mission, understand the impact of their gifts, and see themselves as partners in the organization’s work. As a result, stewardship, personalized communication, and meaningful engagement are becoming even more important.
Here are factors to consider in your donor retention strategies:
Focus on planned giving
Deepening relationships with existing donors is also the best way to build a pipeline for planned giving and long-term philanthropy. As the Great Wealth Transfer continues, donors across many income levels are thinking more intentionally about legacy, family values, and charitable impact. Organizations that make planned giving conversations approachable and accessible may find new opportunities to deepen donor relationships across generations.
Keep an eye on technology
Artificial intelligence and automation tools are helping many nonprofits personalize donor outreach, streamline administrative work, and better analyze fundraising trends. While technology can improve internal efficiency, experts continue to emphasize that successful fundraising remains rooted in genuine human connection. Donors still want authentic relationships, transparency, and trust.
Build trust
You’ve likely already noticed a growing demand for flexibility and trust-based philanthropy. Many donors are showing greater interest in unrestricted giving and multi-year support, recognizing that nonprofits need stable resources to respond effectively to changing community needs. Organizations that clearly communicate impact and demonstrate strong leadership may be better positioned to inspire this kind of long-term donor confidence.
Adapt for generational changes
Younger donors often prioritize values-driven giving, collaboration, and community engagement. Many want to participate actively in charitable work rather than simply writing a check. This creates opportunities for nonprofits to build deeper engagement through volunteerism, storytelling, donor education, and family philanthropy initiatives.
As always, please lean on the community foundation during this time of change and opportunity. We are here for you!
This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.