It’s Not Just Taxes: The Real Reasons Clients Delay Charitable Giving

It’s not unusual for people to feel on edge during tax season. Research suggests that one in three taxpayers say the thought of filing taxes makes them want to cry. The dread of owing money, complex reporting requirements, and the anxiety of waiting for a refund can take a toll. In fact, 75% of senior accountants say tax season is stressful.

For attorneys, CPAs, and wealth advisors, this stress can appear to spill over into other areas of clients’ financial lives, including charitable giving and philanthropic planning.

It’s easy to assume that when clients delay conversations about charitable giving during tax season, the reason is tax anxiety. But in many cases, taxes are not the real barrier.

More often, the hesitation stems from emotional and behavioral factors, not financial ones.

Understanding those barriers can help advisors move the conversation forward. And that’s where a community foundation can help.

The Real Reasons Clients Delay Charitable Giving

Many clients who postpone charitable decisions are not worried about tax deductions. Instead, they may be navigating deeper questions around trust, control, family dynamics, or decision-making.

Common obstacles include:

• Lack of trust in how charities will use the funds
• Fear of losing control over charitable assets
• Uncertainty about family involvement in philanthropy
• Anxiety about timing charitable gifts
• Decision paralysis caused by too many nonprofit choices

These concerns are common in philanthropic planning—and they can be addressed with the right structure and guidance.

How Donor-Advised Funds Help Clients Take the First Step

For clients concerned about control, a donor-advised fund (DAF) can offer a flexible starting point.

A donor-advised fund allows a client to:

• Make a charitable contribution when it makes financial sense
• Receive an immediate tax benefit
• Recommend grants to nonprofits over time

This structure allows clients to separate the tax decision from the giving decision.

Even if a client isn’t ready to select specific charities, they can still begin building a charitable strategy.

Navigating Family Dynamics in Philanthropic Planning

Family dynamics can also make charitable conversations complicated.

Many clients want to involve children or grandchildren in philanthropy, but they may hesitate to disclose the full details of their wealth.

A community foundation can facilitate family conversations around charitable values without requiring sensitive financial disclosures.

These discussions allow families to focus on:

• Shared values
• Community impact
• Legacy goals

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! 

Over time, this approach can strengthen family unity and reduce potential conflict around inheritance or wealth transfer.

Helping Clients Overcome Decision Paralysis

Some clients hesitate simply because they feel overwhelmed by options. A community foundation can help simplify this process by:

• Sharing research on local community needs
• Providing information on vetted nonprofit organizations
• Helping clients align charitable vehicles with their desired level of involvement

This support reduces the research burden for both the client and the advisor while keeping the conversation moving forward.

Charitable Planning Is an Ongoing Journey

Clients often assume charitable giving requires making a perfect decision from the start.

In reality, philanthropy is an evolving journey.

Clients can begin by supporting a few organizations or a broad cause area and refine their giving strategy over time as their confidence grows.

When clients realize they don’t need perfect certainty to begin, the pressure often disappears, and generosity becomes easier.

How Community Foundations Support Advisors and Clients

The common theme across these barriers—control, family dynamics, timing, and overwhelm—is that they can all be addressed through proactive charitable planning.

A community foundation can partner with attorneys, CPAs, and wealth advisors to help clients:

• Establish donor-advised funds
• Develop long-term philanthropic strategies
• Engage family members in giving
• Identify meaningful nonprofit partners
• Align charitable giving with tax and estate planning

Whether it’s tax season or any time of year, the community foundation team can help advisors and clients move from hesitation to impact.