Three tax time scenarios, helpful tips, and what you need to know right now 

For decades, April 15 has been etched firmly in the minds of both taxpayers and their advisors. As attorneys, CPAs, and financial advisors, you know that tax season is when many clients start paying closer attention to the rules and how they might have changed since the year before, including rules for charitable deductions. 

Especially in light of the tax law changes that took effect on January 1, now is the time to understand clients’ philanthropic intentions for 2026 if you don’t already. Addressing charitable planning at tax time can help ensure that your clients won’t miss out on important opportunities. Here are three ways to do that: 

Evaluate QCDs sooner rather than later

Here’s a typical scenario: Your client, who enjoys giving to favorite charities, is 75 years old.

Here’s the tip: Talk with your client as soon as possible about Qualified Charitable Distributions. IRA owners who are 70 ½ and older are eligible to use their IRAs to distribute up to $111,000 in 2026 (indexed for inflation) directly to a qualified public charity, including some types of funds at the community foundation. QCDs can satisfy all or part of a client’s RMD. 

What’s super important to know right now: Planning QCDs early in the year helps avoid administrative delays and ensures proper coordination with RMD requirements. For clients who do not itemize deductions—especially in light of the continued higher standard deduction amounts—QCDs remain one of the most tax-efficient ways to give.

Watch for charitable opportunities in business succession planning

Here’s a typical scenario: Your client is beginning to explore exit strategies for a family business.

Here’s the tip: Contact the community foundation early in the planning process. Gifting closely held business interests to a donor-advised fund at the community foundation prior to a sale can be a powerful planning strategy. The client may receive a charitable income tax deduction (generally equal to the fair market value of the gifted interest if it is long-term capital gain property, subject to AGI limitations). The gifted portion of the business may avoid capital gains tax when a sale occurs down the road, maximizing proceeds flowing into the donor-advised fund to support the client’s philanthropic goals.

What’s super important to know right now: Timing is critical. If a sale is already effectively in motion—or if there is a binding agreement in place—the IRS may challenge the charitable deduction under the assignment of income doctrine. Early coordination among legal, tax, and philanthropic advisors is essential. o focus more resources on mission-driven work rather than manual check processing.

Consider gifts of appreciated assets early in the year

Here’s a typical scenario: A client who itemizes income tax deductions experienced significant portfolio gains in 2025 and anticipates continued market strength in 2026. 

Here’s the tip: Consider recommending that your client make a gift of appreciated stock to a donor-advised fund at the community foundation. Gifts of long-term appreciated assets to a donor-advised fund are generally deductible at fair market value (subject to 30% of AGI limitations for appreciated assets, as well as the new floor and cap that took effect on January 1, 2026). The donor-advised fund can sell the asset without incurring capital gains tax.

What’s super important to know right now: Pay particular attention to the rules that apply to clients who itemize their deductions versus those who don’t. Beginning with the 2026 tax year, non-itemizers are eligible to deduct cash gifts (not gifts of stock or other assets) to public charities (excluding donor-advised funds) up to $1000 for single filers and $2000 for joint filers.  

As always, our goal at the community foundation is to serve as your go-to sounding board on all matters related to charitable giving as you structure clients’ tax, estate, retirement, or business planning strategies. We look forward to working together during tax season and beyond!