 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!  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:
 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:
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!  You might initially think of a donor-advised fund as a simple charitable savings account: contribute assets, immediately receive a tax deduction, if eligible, and recommend grants to your favorite 501(c)(3) nonprofits over time. While that is certainly true, many people are surprised to learn just how flexible a donor-advised fund at the Community Foundation can be.
For many donors, the creative use of donor-advised funds at the Community Foundation opens the door to a larger charitable impact than they originally thought possible. Here’s how: Your fund grows and changes alongside your life Many people do not realize that a donor-advised fund at the Community Foundation can help simplify giving during major life transitions. If you are preparing for retirement, selling a business, receiving an inheritance, or navigating a particularly high-income year, your donor-advised fund can provide flexibility in both timing for income tax planning and philanthropic grantmaking decisions. What’s more, during many of these transitions, it may make sense to look beyond cash gifts and explore using appreciated stock, closely held business interests, real estate, and other noncash assets to fund your charitable goals in tax-efficient ways. Your fund can help you engage the next generation Some donors are using donor-advised funds at the Community Foundation to involve children and grandchildren in family philanthropy. Because grants can be recommended over many years to 501(c)(3) organizations locally and across the country, donor-advised funds create opportunities for ongoing conversations about values, generosity, and community impact across generations. The Community Foundation supports your areas of focus Working with your local Community Foundation adds the important elements of flexibility, personalization, and expertise. Unlike national commercial donor-advised fund providers, Community Foundations combine the administrative advantages of a donor-advised fund with deep local knowledge and personalized philanthropic support. The Community Foundation can help identify community needs, connect you with nonprofit organizations of all shapes and sizes, and explore creative strategies tailored to your own charitable interests. The Community Foundation is here to help you support your favorite causes, whatever they may be. The takeaway? Your donor-advised fund at the Community Foundation is much more than just a giving account—it is a flexible tool for building a thoughtful, lasting charitable legacy that supports your favorite causes and the community as a whole. Please reach out to our team to expand your impact and enjoy your philanthropy even more!  As charitable planning conversations become more sophisticated, many advisors are revisiting so-called “split-interest gifts” to help clients balance philanthropic goals with income needs. Two of the most common strategies—a charitable gift annuity (CGA) and a charitable remainder trust (CRT)—can both provide clients with lifetime income while ultimately benefiting charitable causes. Despite their similarities, the two vehicles function very differently and may serve distinct client needs.
Understanding when to consider each option can help attorneys, CPAs, and financial advisors deliver more customized and impactful planning guidance. Unless your practice specializes in charitable giving, though, you’re not likely to have the rules for CGAs and CRTs at your fingertips. Here are six FAQs to get you started. What do CGAs and CRTs do for a client? At a high level, both a CGA and a CRT would allow your client to make an irrevocable charitable gift while retaining an income stream for life or for a term of years. In both cases, your client may qualify for an immediate charitable income tax deduction, and a portion of future payments may receive favorable tax treatment. In short, people use CGAs and CRTs to save taxes, make a gift to charity, and create an income stream. Which is easier—a CGA or a CRT? A charitable gift annuity is generally the simpler of the two arrangements. The client transfers assets to a charitable organization in exchange for a fixed lifetime payment backed by the charity’s general assets. Payment rates are typically based on age and standardized actuarial assumptions. Because the payout is fixed and administration is relatively straightforward, CGAs often appeal to older donors seeking predictability and simplicity. Note that not every charity offers a CGA option; many smaller or mid-sized nonprofits lack the resources, licenses, or state registrations needed to manage them. Which is more flexible—a CGA or a CRT? A charitable remainder trust offers considerably more flexibility than a CGA, but it is also more complex. A CRT is a separately administered trust—its own legal entity—that pays income to one or more beneficiaries before the remaining assets eventually pass to charity. Unlike a CGA, a CRT can be designed in different ways. A charitable remainder annuity trust (CRAT) provides fixed annual payments, while a charitable remainder unitrust (CRUT) pays a variable amount based on a percentage of the trust's annually revalued assets. Which option is better for clients contributing larger assets? CRTs are often better suited for clients contributing larger or more complex assets. Because the trust can sell appreciated assets without triggering immediate capital gains tax within the trust, CRTs are frequently used in connection with highly appreciated real estate, concentrated stock positions, or even business interests prior to a sale. In addition, CRTs can accommodate multiple beneficiaries, customized payout structures, and professional investment management strategies. Clients who want greater flexibility, longer-term wealth planning opportunities, or inflation-sensitive income may prefer a unitrust structure over the fixed nature of a CGA. Of course, that flexibility comes with added responsibilities. CRTs require formal trust administration, annual tax filings, ongoing investment oversight, and legal drafting. CGAs, on the other hand, are generally easier for clients to understand and establish. When is a CGA better? You may recall that a technique called a “Legacy IRA” was created by the SECURE 2.0 Act, allowing taxpayers aged 70 ½ or older to make a one-time election for a tax-free Qualified Charitable Distribution to certain CRTs or CGAs. Clients who want to take advantage of the Legacy IRA may find that a CGA is better suited to their needs. The cost of setting up and administering a CRT may not be worth it because the limit for these transactions is $55,000 (2026 level) per person. What’s the first step in exploring CRTs and CGAs? As always, the team at the community foundation is honored to be your first call whenever charitable giving comes up in a client conversation. If you are exploring CGAs and CRTs, we’ll point you in the right direction so that you can evaluate the rules for each technique and review important questions related to the particular client situation, including what type of asset will fund the gift, the size of the proposed contribution, the client’s income goals, the number of beneficiaries, and cost concerns. Finally, keep in mind that charitable giving conversations are not limited to ultra-high-net-worth households. Many clients today are seeking ways to create reliable retirement income while also making meaningful charitable commitments. Split-interest gifts can help accomplish both objectives simultaneously. We look forward to our next conversation!  You might initially think of a donor-advised fund as a simple charitable savings account: contribute assets, immediately receive a tax deduction, if eligible, and recommend grants to your favorite 501(c)(3) nonprofits over time. While that is certainly true, many people are surprised to learn just how flexible a donor-advised fund at the Community Foundation can be.
For many donors, the creative use of donor-advised funds at the Community Foundation opens the door to a larger charitable impact than they originally thought possible. Here’s how: Your fund grows and changes alongside your life Many people do not realize that a donor-advised fund at the Community Foundation can help simplify giving during major life transitions. If you are preparing for retirement, selling a business, receiving an inheritance, or navigating a particularly high-income year, your donor-advised fund can provide flexibility in both timing for income tax planning and philanthropic grantmaking decisions. What’s more, during many of these transitions, it may make sense to look beyond cash gifts and explore using appreciated stock, closely held business interests, real estate, and other noncash assets to fund your charitable goals in tax-efficient ways. Your fund can help you engage the next generation Some donors are using donor-advised funds at the Community Foundation to involve children and grandchildren in family philanthropy. Because grants can be recommended over many years to 501(c)(3) organizations locally and across the country, donor-advised funds create opportunities for ongoing conversations about values, generosity, and community impact across generations. The Community Foundation supports your areas of focus Working with your local Community Foundation adds the important elements of flexibility, personalization, and expertise. Unlike national commercial donor-advised fund providers, Community Foundations combine the administrative advantages of a donor-advised fund with deep local knowledge and personalized philanthropic support. The Community Foundation can help identify community needs, connect you with nonprofit organizations of all shapes and sizes, and explore creative strategies tailored to your own charitable interests. The community foundation is here to help you support your favorite causes, whatever they may be. The takeaway? Your donor-advised fund at the Community Foundation is much more than just a giving account—it is a flexible tool for building a thoughtful, lasting charitable legacy that supports your favorite causes and the community as a whole. Please reach out to our team to expand your impact and enjoy your philanthropy even more!  You might initially think of a donor-advised fund as a simple charitable savings account: contribute assets, immediately receive a tax deduction, if eligible, and recommend grants to your favorite 501(c)(3) nonprofits over time. While that is certainly true, many people are surprised to learn just how flexible a donor-advised fund at the community foundation can be.
For many donors, the creative use of donor-advised funds at the Community Foundation opens the door to a larger charitable impact than they originally thought possible. Here’s how: Your fund grows and changes alongside your life Many people do not realize that a donor-advised fund at the Community Foundation can help simplify giving during major life transitions. If you are preparing for retirement, selling a business, receiving an inheritance, or navigating a particularly high-income year, your donor-advised fund can provide flexibility in both timing for income tax planning and philanthropic grantmaking decisions. What’s more, during many of these transitions, it may make sense to look beyond cash gifts and explore using appreciated stock, closely held business interests, real estate, and other noncash assets to fund your charitable goals in tax-efficient ways. Your fund can help you engage the next generation Some donors are using donor-advised funds at the Community Foundation to involve children and grandchildren in family philanthropy. Because grants can be recommended over many years to 501(c)(3) organizations locally and across the country, donor-advised funds create opportunities for ongoing conversations about values, generosity, and community impact across generations. The Community Foundation supports your areas of focus Working with your local Community Foundation adds the important elements of flexibility, personalization, and expertise. Unlike national commercial donor-advised fund providers, community foundations combine the administrative advantages of a donor-advised fund with deep local knowledge and personalized philanthropic support. The community foundation can help identify community needs, connect you with nonprofit organizations of all shapes and sizes, and explore creative strategies tailored to your own charitable interests. The community foundation is here to help you support your favorite causes, whatever they may be. The takeaway? Your donor-advised fund at the community foundation is much more than just a giving account—it is a flexible tool for building a thoughtful, lasting charitable legacy that supports your favorite causes and the community as a whole. Please reach out to our team to expand your impact and enjoy your philanthropy even more!  At the Community Foundation, we are honored to work with many individuals, families, and businesses who support the causes that matter most to them and help make our entire community a better place to live. In many cases, trusted professional advisors, including attorneys, CPAs, and financial advisors, are helping donors make important decisions about taxes, investments, estate planning, and family wealth.
All of this is wonderful! There’s one more step, however, that is often overlooked: Connecting the dots. If you are a donor or fund holder at the Community Foundation, or plan to establish a fund in the near future, please consider introducing your advisors to the community foundation team. A simple introduction can make a tremendous difference in ultimately achieving your charitable goals. Here’s why:
Importantly, collaborative conversations among donors, advisors, and the community foundation are not only for ultra-high-net-worth families. Even relatively straightforward charitable plans can benefit from collaboration between your advisors and the Community Foundation. In many cases, donors discover giving opportunities they might not otherwise have considered. What’s more, many advisors appreciate having philanthropic specialists available to help explore charitable strategies that benefit both the donor and the causes they care about. So what can you do? We invite and encourage you to take the lead! A simple email introducing each of your advisors to the community foundation team is often all that is required to open the door to better communication and stronger planning. The Community Foundation is always happy to join a conversation with you and your advisors, but a baseline introduction is the most critical part. When professionals work together, the result is often a more coordinated and impactful charitable plan. By connecting your advisors with the Community Foundation, you help create a team that can support both your financial goals and your desire to make a lasting difference. We look forward to hearing from you—and meeting your advisors! Thank you for all you do to make our community a better place.  Over the last several years, communities across the country, including our own region, have faced moments of enormous challenge—from natural disasters and economic uncertainty to housing shortages and growing mental health needs. Increasingly, the community foundation team is talking with donors and fund holders about how their charitable giving can make the biggest difference right now. This idea is being described in industry circles as “meeting the moment.”
In the simplest terms, meeting the moment means responding thoughtfully and generously to the needs that matter most today while still keeping long-term community impact in mind. Sometimes that means supporting immediate emergency relief efforts. Other times, it means helping nonprofits today so that they can build long-term solutions that strengthen our community for years to come. Here are three tips that may help you and your family consider how you can make the biggest difference: Think broadly about your charitable giving plan Many fund holders have adopted a “portfolio approach” to their philanthropy, leaning on the Community Foundation to serve as a convenient and strategic hub. For example, your charitable giving “portfolio” at the community foundation might include a donor-advised fund to support your annual and ongoing charitable giving, legacy provisions to ensure that your impact extends across future generations, capacity-building gifts to the community foundation itself to ensure the growth of philanthropy and impact across our region, and special “field of interest” or “designated funds” to support particular focus areas or specific nonprofit organizations as needs ebb and flow. The combination of multiple fund types and giving structures helps ensure that your dollars make the biggest difference. Incorporate flexibility as you carry out your charitable giving plan With the appropriate funds and planning vehicles in place, many donors take the next step to ensure their charitable portfolio allows for flexible funding during times of crisis and transition. Specifically, nonprofits in our community often need unrestricted support so they can respond quickly to changing conditions, invest in staff capacity, and continue serving people effectively even after headlines fade. Donors who understand this can play a powerful role in helping organizations remain resilient and responsive. The Community Foundation can help you identify instances where it’s most beneficial simply to provide general support to nonprofit organizations, rather than designating your gift to a specific program or desired outcome. Consistency is key Meeting the moment does not mean changing all your charitable priorities overnight, only to revert them back when the moment has passed. There will always be moments of need! Instead, “meeting the moment” means staying informed about current community needs with the help of the Community Foundation team, remaining flexible in the causes you support and the ways you support them, and responding quickly when your philanthropy can create meaningful impact and your community needs it most. Sometimes, even a small adjustment in timing, focus, or funding approach can make a big difference in the lives of people in need. As always, the Community Foundation is here to help. Our team members are deeply connected to local nonprofits and community leaders, which means we are uniquely positioned to identify emerging needs and opportunities for impact. Whether you want to respond to a current challenge, support a specific cause area, or balance immediate needs with long-term charitable goals, the community foundation can help you structure your overall giving strategy and serve as a sounding board as you carry out your plans. Please reach out anytime! Community Foundation Invests in Regional Arts Through 2026 Iseminger Endowment for the Arts Grants5/6/2026
 Youth musicians rehearsing side-by-side with mentors. Inclusive choir members finding community through song. Young performers stepping onto the stage for the first time. These are just a few of the experiences that will be made possible through 2026 Iseminger Endowment for the Arts Grant Program at the Community Foundation of Grand Forks, East Grand Forks & Region.
This year, the Community Foundation awarded $112,172 across nine regional organizations supporting projects in music, theater, dance, and arts education that will serve thousands of residents across the region. “The arts help define the character of a community,” said Becca Baumbach, President and CEO of the Community Foundation. “These organizations are creating opportunities for people of all ages to participate in and experience the arts in meaningful ways, whether that’s on stage, in classrooms, in galleries, or out in the community. We’re grateful to the Iseminger family for creating an endowment that makes these opportunities possible year after year.” The Iseminger Endowment for the Arts was established to strengthen and expand access to arts and cultural experiences throughout Grand Forks, East Grand Forks, and the surrounding region. The annual grant program supports projects that demonstrate artistic quality, community engagement, and educational impact, with an emphasis on musical performance. Several funded projects place a strong importance on youth engagement and arts education. Northern Valley Youth Orchestras’ sixteenth season will provide symphonic training, mentoring, coaching, and concert opportunities for more than 150 young musicians, while also expanding outreach performances and student mentoring opportunities. Grand Cities Children’s Choir will launch a new percussion education initiative alongside two free public concerts during the 2026–2027 season. Other projects focus on creating inclusive and accessible arts experiences. LISTEN, Inc.’s “Voice of Inclusion” program will partner with the University of North Dakota to build an inclusive community choir for individuals with and without disabilities, using music to foster connection and belonging. The Empire Arts Center’s production of The Wizard of Oz will bring together seasoned adult actors and youth performers ages 10 and older in an intergenerational theatrical experience designed to create both entertainment and learning opportunities. Several organizations are also expanding opportunities for audiences to engage directly with professional artists. The North Dakota Museum of Art’s chamber music season will feature internationally recognized musicians participating in concerts, school visits, workshops, and community presentations throughout multi-day residencies. Grand Forks Chorales will pair a major collaborative concert with free educational masterclasses for students and community members. Additional grants will support Frost Fire Summer Theatre’s revitalized summer season in the Pembina Gorge, upgraded production equipment for East Grand Forks Central Middle School musicals, and North Dakota Ballet Company’s Holiday Extravaganza production featuring performers ranging from preschool-age dancers to adults. 2026 Iseminger Endowment for the Arts Grant recipients include:
“These projects reflect the depth and diversity of the arts in our region,” Baumbach said. “They create opportunities for learning, creativity, collaboration, and connection that strengthen our communities and enrich our quality of life.” More information about the Iseminger Endowment for the Arts is available at gofoundation.org/iseminger-grants.  The Community Foundation of Grand Forks, East Grand Forks & Region is thrilled to announce that Dolly Parton’s Imagination Library will officially be available to children across Grand Forks County beginning July 1, marking a major milestone made possible by an outpouring of community support.
As the Imagination Library’s local affiliate, the Community Foundation has helped lead a grassroots effort to raise $90,000 to launch the program. Once enrolled, children from birth to age five will receive a free, high-quality, age-appropriate book in the mail each month – regardless of family income or background. What began as a conversation has become a reality thanks to the collective commitment of Grand Forks County. Since July 2025, the Foundation and a small committee of volunteers have raised nearly $50,000 in donations and grants from more than two dozen local organizations and businesses, including foundational gifts from Scheels, Minnkota Power Cooperative, and the University of North Dakota. An additional $40,000 has been contributed by more than 55 individuals and private foundations who believe deeply in the power of early childhood literacy, led by a generous gift from Grand Forks’ Jim and Corinne Satrom. “The past year has shown us something truly special. Families across Grand Forks County are eager for opportunities like this, and the people of our county are equally eager to respond,” said Imagination Library Coordinator Kaylee Cusack, a volunteer with the Community Foundation. “This is, in every sense, the community’s Imagination Library. It’s been built by neighbors, businesses, and organizations all stepping forward to say our children matter.” Reaching the $90,000 fundraising milestone allows the Community Foundation to begin enrolling children in the program this summer. However, organizers emphasize that sustaining the Imagination Library for years to come will require continued partnership and investment from across the county. For just $35 of support, a single child can receive 12 books a year, helping to build a home library and foster a lifelong love of reading. With a goal of serving more than 3,000 children at peak enrollment, the program aims to raise approximately $100,000 annually. “This is one of the most practical and powerful investments we can make in our region’s future,” said Community Foundation President and CEO Becca Baumbach. “When children enter kindergarten ready to learn, it changes the trajectory not only for that child, but for entire classrooms and school systems.” Cusack added that the long-term benefits extend beyond the classroom. “Readers become leaders. The children who grow up with books in their homes are more likely to become the innovators, entrepreneurs, and public servants who will shape Grand Forks County in the years ahead,” she said. “This program is about planting those seeds now.” Mark your calendar – online enrollment for Grand Forks County families will open July 1 at imaginationlibrary.com. A community celebration is planned for Aug. 11 at the Grand Forks Public Library, with additional details to be announced. If you would like to learn more or donate, please visit gofoundation.org/dpil. About Dolly Parton’s Imagination Library Launched in 1995, Dolly Parton’s Imagination Library is the world’s leading early childhood book-gifting program. As the flagship initiative of The Dollywood Foundation, a 501(c)(3) nonprofit organization, the Imagination Library has gifted more than 300 million free books to children across the United States, Canada, the United Kingdom, Australia, and the Republic of Ireland. Inspired by her own father’s struggles with literacy, Dolly created the Imagination Library to spark a lifelong love of reading and to inspire all children to Dream More, Learn More, Care More, and Be More. The program’s effectiveness has been extensively studied, with research consistently demonstrating positive impacts on early childhood development, kindergarten readiness, and family reading habits. For more information, please visit imaginationlibrary.com.  Photo: Mary Loyland (center) was presented with a beautiful piece of art by local artist, Carrie Sapa. Pictured (left to right) are Emberly Lietz, Development Director; Amelia Indvik, Director of Operations; Mary Loyland; Sheila Bruhn, Chair of the Board; and Becca Baumbach, President & CEO. The Community Foundation is pleased to welcome three new members to our Board of Directors in 2026. Each brings unique experience, passion, and a deep commitment to strengthening our community, and we are grateful for their willingness to serve. We are excited to welcome Dylan Berg, Sue Bjornstad, and Sandy Kovar to the board.
As we welcome these new board members, we also extend our deepest gratitude to Mary Loyland, who is stepping off the Board of Directors after a cumulative 18 years of service. Mary’s steady leadership, generosity, and deep commitment to our mission have shaped the Foundation in lasting ways. Throughout her time on the board, she guided thoughtful decisions, championed philanthropy, and strengthened the work that supports our community every day. We are profoundly thankful for her dedication and the legacy she leaves behind. Please join us in thanking Mary for her remarkable service and in welcoming Dylan, Sue, and Sandy as they begin their work with the Community Foundation.  Photo (left to right): Sue Bjornstad, Sandy Kovar, and Dylan Berg  If you know the basics of Qualified Charitable Distributions (QCDs) but have a hard time envisioning exactly what to say and do when they come up in a client conversation, you are not alone! Whether you are an attorney, CPA, or financial advisor, at some point you will find yourself in the middle of a QCD conversation. Here’s a case study to help you be prepared.
Margaret, a 74-year-old widow and longtime client of your practice, scheduled a meeting early in the year to discuss her charitable giving plans. In the email Margaret sent to set up the meeting, she mentioned that she was now taking required minimum distributions from her IRA and her taxable income was higher than she expected or needed. As you reviewed Margaret’s file prior to the meeting, you were reminded that Margaret had established a donor-advised fund at the Community Foundation several years ago. You recall from prior conversations that Margaret not only has enjoyed using the donor-advised fund to organize her charitable giving to dozens of favorite charities, but she’s also appreciated the many opportunities to tap into the Community Foundation’s events and educational opportunities. Margaret arrived at your office, and after catching up on each other’s lives lately, Margaret said, “I’ve read about this thing called a Qualified Charitable Distribution. If I’m going to give to charity anyway, I want to understand whether doing a QCD in 2026 makes sense, especially if I want the gift to go through the Community Foundation where I already do all of my giving.” You nod and explain that a QCD does indeed allow individuals like her who are age 70 ½ or older to transfer funds directly from an IRA to a qualified charity without including that amount in taxable income. You mention that this can be especially powerful after age 73, when required minimum distributions begin, because the QCD can satisfy all or part of the RMD while keeping adjusted gross income lower. “This can help address Medicare premiums, taxation of Social Security, and overall tax efficiency,” you continue. “With the annual QCD limit increasing through inflation adjustments to $111,000 in 2026, it’s a timely strategy to consider.” Margaret was glad to hear all of this. Then she asked, “I already have a donor-advised fund at the Community Foundation. Can I simply direct my QCD straight into that fund?” You are prepared for this question! It is a common point of confusion. “That’s a great question, and you’re not alone in asking it,” you reply. “Under current IRS rules, unfortunately, QCDs can’t be made to donor-advised funds, even if they’re housed at a community foundation.” Seeing her puzzled expression, you continue with a broader explanation. “QCDs are limited to certain types of charitable recipients,” you say. “They can go directly to public charities that are ‘operating’ nonprofits, and in limited cases to certain split-interest arrangements like a charitable gift annuity or a charitable remainder trust, subject to specific rules. Donor-advised funds are excluded, evidently because the IRS does not want the money to flow into account where the taxpayer retains advisory privileges. Donor-advised funds are of course entirely dedicated to charity, so the rule does not make a lot of sense. Yet here we are.” Margaret frowned slightly. “That feels frustrating,” she said. “I love the donor-advised fund because it gives me flexibility and lets me support multiple causes over time.” You acknowledged her concern. “I understand. The good news, though,” you say, “is that the Community Foundation offers other types of funds that do qualify for QCDs and can still accomplish many of the same goals.” You go on to explain that instead of directing the QCD to her donor-advised fund, Margaret could direct the QCD to a designated fund at the Community Foundation that supports specific charities she already knows she wants to help, or to a field-of-interest fund focused on causes she cares about deeply, such as education or the arts, or to an unrestricted fund to support the community as a whole. “Those types of funds are fully managed by the Community Foundation, without your advisory role after setup,” you say, “which makes them eligible recipients of a QCD while still aligning with your charitable intentions.” Margaret paused, considering the options. “I don’t want to make the wrong choice,” she said. “I also want to be sure the fund is set up properly and really reflects what I care about.” You agree that is exactly the point where collaboration matters most. “This is where I’d recommend looping in the Community Foundation,” you say. “They can help us think through which type of fund fits best, provide a fund agreement document, and enable me to fulfill my professional duty to ensure that the structure complies with QCD rules.” You go on to suggest a joint meeting with a community foundation representative. “The Community Foundation knows the nuances of the fund options and the local charitable landscape,” you explain. “That’s a great match for the legal and tax obligations on my side of the transaction. Together we can help ensure that your QCD in 2026 is clean, compliant, and aligned with your values.” Margaret smiled, clearly relieved. “That makes sense,” she said. “I don’t want this to be just about taxes. I want it to be meaningful.” By the end of the meeting, you and Margaret have agreed on next steps: you said you would review Margaret’s IRA custodian requirements for executing a QCD, and the Community Foundation will set up a fund to receive the distribution. The plan will allow Margaret to use her required minimum distribution to support the community she loves, reduce her taxable income, and create a charitable structure she feels confident about. As Margaret leaves your office, you can tell that she feels reassured that she didn’t have to navigate the rules alone. The conversation had clarified not only why a QCD in 2026 made sense for her financially, but also why working collaboratively with you and the Community Foundation was essential. Together, you and the Community Foundation can turn a confusing tax rule into a thoughtful charitable strategy that supports both Margaret’s personal financial goals and the broader community she intends to impact. If Margaret’s situation sounds familiar, or if you anticipate any type of charitable giving conversation with a client, the Community Foundation is here for you! We are always happy to collaborate as you explore solutions to achieve your clients’ charitable goals. In nearly every situation, the Community Foundation can help. At the very least, we will point you in the right direction. Thank you for the opportunity to work together! Pro Tip As you talk with clients over the coming weeks, keep in mind that tax laws are always subject to change–and sometimes for the better. Case in point related to Margaret’s situation? A small, bipartisan tax law change has been proposed that would allow Qualified Charitable Distributions into donor-advised funds. Fingers crossed!  For many CPAs, estate planning attorneys, and financial advisors, the end of 2025 brought a whirlwind of charitable planning activity among high-earner clients. That’s because many taxpayers wanted to maximize the tax benefits of their charitable donations before the 0.5% “floor” and 35% “cap” on charitable deductions kicked in on January 1, 2026 under new tax laws. Donor-advised funds in particular played a big role in many late-2025 planning strategies because affected taxpayers could transfer assets to a donor-advised fund in 2025, achieve optimal tax results, and then thoughtfully recommend grants to favorite charities from the donor-advised fund in 2026 and beyond.
So what now? Should you still recommend that your clients establish and use donor-advised funds at the Community Foundation to organize their charitable giving? Absolutely yes! Donor-advised funds remain a highly relevant and strategic tool for your clients. The IRS’s new deductibility limits may reduce the marginal tax benefit of giving for some of your clients, but nothing has changed about the donor-advised fund’s broader planning advantages for all of your charitable clients. Here’s why:
In short, donor-advised funds at the Community Foundation support your clients’ holistic wealth and legacy planning goals. The Community Foundation makes it easy for you, as the advisor, to integrate a donor-advised fund into a client’s estate plan, use a donor-advised fund to smooth charitable giving over time as a client’s income ebbs and flows, and lean on the donor-advised fund as a platform for strategic philanthropy that can evolve alongside a client’s unique life and financial circumstances.  Well before 2025 made way for 2026, you were no doubt already tracking the various IRS thresholds that are subject to adjustment, as well as the new tax laws’ impact on planning techniques. But have you thought about how each of these thresholds might relate to your clients’ charitable giving? Here are pointers to keep handy as you inform your clients about changes in 2026 and help them tee up their charitable giving plans for the coming year.
Social Security COLA increases The Social Security Administration announced a cost-of-living adjustment (COLA) increase effective January 1, 2026. This increase reflects inflation’s trajectory and affects many retirees who also engage in philanthropy. Importance to charitable giving: Retirees are a unique group when it comes to tools and techniques related to charitable giving. Given that a high percentage of older cohorts give to charity each year, discussing your clients’ Social Security benefits is a logical juncture to also bring up charitable giving plans for 2026 and beyond. Standard deduction increases For tax year 2026, the standard deduction increased to $16,100 for single taxpayers, $24,150 for heads of households, and $32,200 for married couples filing jointly. Importance to charitable giving: The standard deduction is a key factor in charitable giving strategies. If a client’s total itemized deductions - including charitable gifts - exceed the standard deduction, they are eligible to itemize. Reviewing this threshold and considering a “bunching” strategy (accelerating multiple years of giving into one tax year) can help maximize charitable support through 2026 and beyond. Tax brackets Though the tax rates remain at a range from 10% to 37%, the income levels that define each bracket for 2026 have shifted. Importance to charitable giving: Examining tax brackets with clients presents a timely opportunity to discuss their charitable giving strategies. With the new limitations on itemized deductions that took effect in 2026 (specifically the 0.5% floor and the 35% cap), it’s important to help clients plan carefully so that their philanthropy remains tax-efficient. Qualified Charitable Distributions (QCDs) For tax year 2026, the per-taxpayer limit for Qualified Charitable Distributions (QCDs) has been increased for inflation to $111,000, up from $108,000 in 2025. And, the limit for a one-time QCD from an IRA to a split-interest vehicle has been adjusted for inflation to $55,000, up from $54,000. Importance to charitable giving: Because clients age 70 ½ or older can direct IRA distributions to charity without including them in taxable income (a “Qualified Charitable Distribution”), these clients can reduce their AGI and, if applicable, satisfy all or part of their required minimum distributions (RMDs). A QCD to a qualified fund at the Community Foundation (such as a designated or field-of-interest fund but not a donor-advised fund) remains one of the most tax-efficient ways to support charity. Non-itemizer charitable deductions Beginning with tax year 2026, a single-filer taxpayer who does not itemize deductions will be allowed to deduct up to $1,000 in cash donations to qualified charities (excluding donor-advised funds and private foundations). Non-itemizing joint filers may deduct up to $2,000. Importance to charitable giving: Despite the relative inflexibility of the new deduction (e.g., gifts of appreciated stock don’t count and neither do gifts to donor-advised funds), nevertheless, this provision for non-itemizers could help encourage people to begin their charitable giving journey, especially in the case of young professionals. To that end, you might consider mentioning this new deduction to your high income-earner clients who have adult children. The Community Foundation can help by offering non-donor-advised fund options to receive the $1000 or $2000 gifts as well as offer opportunities for family learning and hands-on involvement. As 2026 gets into full swing, please reach out to the Community Foundation team! We are honored to be your first call on all matters related to charitable giving. Thank you for the opportunity to help you serve your clients!  Many people approach a new year with a genuine desire to be more intentional about their charitable giving. They know they want to make a difference, align their generosity with their values, and perhaps even involve their families - but they are often unsure where to begin. The combination of busy lives, changing tax laws, and an ever-growing number of worthy causes can make getting started feel overwhelming. The good news is that taking a few simple, thoughtful actions at the beginning of the year can bring clarity and confidence to your giving.
Here are three first steps to inspire you: Consider reviewing your 2025 charitable contributions with the team at the Community Foundation. Looking back at last year’s giving can be surprisingly helpful, especially when guided by professionals who understand both philanthropy and the local community. The Community Foundation can help you see the real-world impact of your gifts, identify patterns in your giving, and highlight opportunities you may not have considered. This review also creates a natural bridge to planning your 2026 support, whether that means refining your focus, adjusting gift amounts, or exploring new charitable vehicles. Just as important, it allows you to begin thinking strategically about future years, helping ensure that your generosity grows in a way that is both meaningful and sustainable. Talk with your tax advisors as soon as possible about whether and how the new tax laws might impact your situation. Charitable giving is closely connected to tax and estate planning, and early conversations can help you make informed decisions before the year gets too far along. This is also an ideal time to revisit your estate plan and beneficiary designations. Many donors choose to include a gift to their donor-advised or other type of fund at the Community Foundation in their wills, trusts, or beneficiary designations on retirement accounts or life insurance policies, creating a lasting legacy that reflects their values. Coordinating these updates with your tax advisor and the Community Foundation can ensure your charitable intentions are clearly documented, tax-efficient, and aligned with your overall financial and estate planning goals. Set goals for your charitable involvement in 2026. Rather than giving reactively, goal-setting allows you to be proactive and intentional about how you engage with the causes you care about. The Community Foundation can help you explore new and emerging charities, learn more about pressing needs in the community, and connect with organizations that align with your interests. Together, you and our team can create a plan for timing gifts throughout the year, whether through recurring contributions, single large gifts early in the year to help a favorite charity leap ahead, or strategic gifts of highly appreciated or complex assets. This approach not only makes giving more manageable but also helps ensure your generosity has the greatest possible impact. As you look ahead, remember that you do not have to navigate charitable planning on your own. The Community Foundation is here to serve as a trusted partner - whether you are just getting started, refining an existing plan, or thinking about the legacy you want to leave for future generations. We invite you to reach out anytime to ask questions, explore ideas, or take the next step in your giving journey. We are honored to help you turn your charitable intentions into meaningful, lasting impact.  At the Community Foundation, we are honored to serve as your home for charitable giving. Whether you support a wide range of charitable organizations in our community and across the country, focus your giving on a few favorite local causes, collaborate with the Community Foundation to invest in our region’s greatest needs, or all of the above, we are here for you!
A new year presents an excellent opportunity to check in on your charitable giving priorities. This is the case every year, but it is especially important in 2026 not only because of the crucial priorities to improve our community’s quality of life, but also because of a few new tax laws that may impact charitable giving strategies for some people. Here are the changes that you’ll want to be aware of, and, most importantly, share with your tax advisors as soon as possible to determine how these changes might impact your situation. Forward this article to your tax advisors, or print it and take it to your next meeting. New threshold to itemize charitable deductions One of the most significant shifts affects individual taxpayers who itemize their income tax deductions. Beginning this tax year, charitable contributions will only be deductible to the extent that they exceed 0.5% of a taxpayer’s adjusted gross income. In practical terms, this means that a portion of charitable giving will no longer generate a tax benefit. For example, a taxpayer with an adjusted gross income of $200,000 will see no deduction for the first $1,000 of charitable contributions made in a year. Only donations above that amount will be eligible for deduction, subject to existing percentage-of-income limits. This new rule functions much like a deductible in an insurance policy, raising the effective threshold for receiving a tax benefit and reducing the immediate incentive for smaller annual gifts among itemizers. Limitation on itemized charitable deductions for high-income taxpayers High-income taxpayers will face an additional limitation through a new cap on the value of itemized charitable deductions. Even if a donor is in the highest federal income tax bracket, the tax benefit of a charitable deduction will be limited to 35 percent of the contribution. As a result, taxpayers in the 37 percent bracket will no longer be able to offset their income at their full marginal rate when making charitable gifts. Good news for the 60% cap Another important change provides greater certainty for donors who make substantial cash contributions. The long-standing rule allowing cash gifts to qualified public charities to be deducted up to 60 percent of adjusted gross income has been made permanent. After satisfying the new 0.5% AGI floor, donors may continue to deduct cash contributions up to this level, while non-cash gifts or contributions to certain types of organizations remain subject to lower percentage limits. This permanence preserves a relatively generous framework for major philanthropy even as other rules become more restrictive. New incentive for non-itemizers The new rules introduce an incentive for taxpayers who do not itemize deductions. Beginning with the 2026 tax year, individuals who claim the standard deduction will be allowed to take a limited charitable deduction above the line, meaning it reduces income before adjusted gross income is calculated. Single filers may deduct up to $1,000, while married couples filing jointly may deduct up to $2,000, provided the contributions are made in cash. This deduction is available in addition to the standard deduction and represents a meaningful expansion of tax benefits for charitable giving among non-itemizers, many of whom have received no tax benefit for donations in recent years. Note, however, that gifts to donor-advised funds are not eligible for this deduction, and neither are noncash gifts. This is unfortunate because both gifts to donor-advised funds and gifts of highly appreciated assets are useful tools that incentivize charitable giving. QCDs may be even more useful Retirees and older taxpayers will also see an important adjustment through an increase in the Qualified Charitable Distribution limit. Beginning in 2026, the annual amount that can be transferred directly from an individual retirement account to a qualified charity will increase, allowing taxpayers age 70 ½ and older to direct more funds to charitable causes without including those distributions in taxable income. Because Qualified Charitable Distributions can also count toward required minimum distributions, this higher limit enhances a tax-efficient giving strategy that is unaffected by itemized deduction limits, adjusted gross income floors, or caps on deduction value. Limitations on corporate charitable deductions Corporate donors are not exempt from the new framework. Starting in 2026, corporations may deduct charitable contributions only to the extent that those contributions exceed 1 percent of taxable income. Contributions below that threshold will not generate a current-year deduction, although amounts that exceed applicable limits may be carried forward to future tax years. This new floor is likely to influence corporate giving strategies, particularly for businesses that make consistent but relatively modest charitable contributions. The existing 10% cap on corporate charitable deductions remains in place. Again, we strongly encourage you to forward this information to your tax advisors. Please loop us into the conversation so that we can work alongside your attorney, financial advisor, and CPA to ensure that you’re set up to meet your charitable goals for 2026 through strategies that also align with your tax, financial, and estate planning objectives. Whether you cc us on an email, ask your advisor to get in touch with us directly, or pull everyone together on a quick call or Zoom, we are here for you and look forward to the conversation!  The Community Foundation of Grand Forks, East Grand Forks & Region is pleased to announce Chelse Kippley as the recipient of the 2025 Mike Maidenberg Emerging Leader Award.
Chelse Kippley is a Grand Forks native and a graduate of the University of Mary’s Gary Tharaldson School of Business. During her undergraduate studies, she was selected as one of four Americans to participate in the Global Village program at the Iacocca Institute at Lehigh University, where she collaborated with peers from 54 countries on international marketing projects. After beginning her career in Bismarck, Chelse returned to Grand Forks in 2018 and joined Gate City Bank, where she currently serves as Treasury Management Consultant for Grand Forks, Devils Lake, Park River, and Mayville. In addition to her professional role, Chelse is a board member of Red River Valley Athletics, an active member of her church, and volunteers with a variety of community organizations. She and her husband have two children and enjoy spending time with family and friends, relaxing at the lake, and traveling. As the 2025 Emerging Leader Award recipient, Chelse selected St. Joseph’s Social Care to receive a scholarship to attend the 2026 Chamber Leadership Class. St. Joseph’s Social Care provides compassionate support to individuals and families in need throughout the Greater Grand Forks community, offering services that promote dignity, stability, and hope. “Chelse exemplifies the values this award was created to honor,” said Becca Baumbach, President & CEO of the Community Foundation. “She is a thoughtful, committed leader who invests her time and talents in strengthening our community. Her decision to support St. Joseph’s Social Care reflects both her compassion and her understanding of the importance of developing strong nonprofit leadership.” About the Mike Maidenberg Leadership Endowment and Emerging Leader Award The Mike Maidenberg Leadership Endowment was established in 2004 at the Community Foundation by Grand Forks Herald employees to honor Publisher Mike Maidenberg upon his retirement. It recognizes his lasting civic contributions to the Grand Forks region, particularly his leadership following the 1997 flood and his role as a founding leader and first Board President of the Community Foundation. The Mike Maidenberg Emerging Leader Award is presented annually to a member of the Chamber Leadership Class who demonstrates outstanding leadership qualities, including positive attitude and adaptability, communication and vision, integrity, education and innovation, creativity, intelligence, and team building. Each recipient selects a nonprofit organization or government entity to receive a scholarship to a future Chamber Leadership Class. About the Community Foundation of Grand Forks, East Grand Forks & Region The Community Foundation of Grand Forks, East Grand Forks & Region is a nonprofit, community foundation created by and for the people of the region to encourage a spirit of philanthropy. Working in partnership with individuals, families, businesses, nonprofits, and trusted advisers, the Foundation manages over 165 charitable funds and provides grants to qualified nonprofit organizations, public entities, and other charitable causes. Since 1998, the Foundation has granted $15.5 million to create stronger, more vibrant communities across the middle and upper Red River Valley region. Learn more about the Community Foundation and its work at gofoundation.org. Foundation Awards $44,000 in Emergency Relief Grants, Supporting 22 Regional Organizations11/4/2025
 The Community Foundation of Grand Forks, East Grand Forks & Region announces the allocation of $44,000 in emergency grants from its Nonprofit Relief Fund to help address food insecurity across our region. These funds will support 22 local food pantries and nonprofit organizations with $2,000 grants each, serving communities in Grand Forks, Walsh, and Polk Counties.
“With so many families facing new financial strain, especially after changes to SNAP benefits, we felt it was important to act without delay,” said Becca Baumbach, President & CEO of the Community Foundation. “Our local food pantries and nonprofits know how to get resources directly to those who need them most. This is a moment for us to show what community looks like when we pull together — and we invite others to join us in helping meet this urgent need.” Why The Support Matters
Recipients Grants will be provided to the following organizations:
Grant Purpose & Impact The $2,000 grants to each food pantry/nonprofit are intended to:
Join the Effort The Community Foundation encourages individuals, businesses and philanthropic donors to join in strengthening local food security efforts. Contributions to the Foundation’s Nonprofit Relief Fund ensure that resources are available when critical emergencies arise – allowing the Foundation to respond swiftly when neighbors face unexpected hardship. To donate or learn more, visit gofoundation.org/relief or contact the Community Foundation office at [email protected]. Community Foundation and Knight Foundation Present $30,000 Matching Gift to Prairie Public10/3/2025
 At Prairie Public’s 2025 State of the Station event with PBS President & CEO Paula Kerger, the Community Foundation of Grand Forks, East Grand Forks & Region, in partnership with Knight Foundation, announced a $30,000 matching gift to support Prairie Public. The grant comes at a critical moment for public media, as stations nationwide face financial challenges that threaten their ability to continue serving their communities. “As a mom raising two young daughters, I see the impact of public media every day — in our home, PBS Kids is part of our morning routine, and my husband and I tune in to Prairie Public radio daily,” said Becca Baumbach, President and CEO of the Community Foundation. “This gift is about ensuring that families across our region continue to have access to trusted news, culture, and educational programming.” The $30,000 grant is structured as a matching gift, meaning every dollar contributed by the community will be doubled. This investment is part of Knight Foundation’s national initiative to provide emergency support to local public media stations in Knight communities. “Local public media stations are trusted community anchors that connect people to vital news, culture and civic life. This is an urgent moment that calls for bold action,” said Maribel Pérez Wadsworth, president and CEO of Knight Foundation. “We are proud to stand with our fellow foundations and urge others to join us in securing the future of public media.” The joint support of the Community Foundation and Knight Foundation underscores the vital role Prairie Public plays in serving eastern North Dakota and northwestern Minnesota with trusted journalism, cultural programming, and educational resources. “When Prairie Public tells a story, it reflects who we are, where we live, and what matters to our local communities,” Baumbach added. “We invite community members to join us in this effort. Together, we can keep public media strong — both in this critical moment and for generations to come.” For more information about Knight Foundation, visit kf.org.  On September 25, 2025, our region came together in a meaningful way at the Longest Table, welcoming 541 residents to sit down for a free shared meal and open conversation at Career Impact Academy. What began as a simple idea - bringing neighbors to one table - became a powerful community moment where people met new faces, shared stories, and engaged in thoughtful dialogue about what matters most to our region’s future. The theme of this year’s Longest Table centered on exploring the interconnections between education and industry, and how aligning these critical parts of our local fabric can bolster community well-being and opportunity. In a world where conversations across differences can be hard to come by, this event offered an inviting space to dive into ideas, ask questions, and strengthen connections that help make Grand Forks, East Grand Forks, and the surrounding region even more vibrant. Learn more at longesttablegf.com.  On September 23, 2025, the Community Foundation teamed up with Bell Bank to host a Trusted Advisors Seminar focused on helping financial, legal, and nonprofit professionals stay ahead in a rapidly evolving philanthropic landscape. The seminar featured Bryan Clontz, nationally renowned founder and president of Charitable Solutions, LLC, who shared key insights on The Top 10 Charitable Trends Every Advisor Should Know in 2025.
Attendees gained practical knowledge - from emerging giving vehicles to demographic shifts influencing charitable strategies - and engaged in thoughtful discussion about how to better serve their clients and communities. The event not only provided valuable continuing education credits, but also strengthened connections across sectors, equipping advisors with tools to support meaningful philanthropic impact across our region. This seminar exemplified the Foundation’s commitment to convening leaders and fostering education that deepens the impact of generosity in our community.  We are proud to announce that Becca Baumbach, President & CEO of the Community Foundation of Grand Forks, East Grand Forks & Region, has been selected to participate in the 2025–26 cohort of CFLeads’ Executive Leadership Institute (ELI) for CEOs.
This national program is designed to help community foundation executives build the leadership skills, strategic vision, and peer relationships necessary to drive meaningful community change. Becca will join a group of peers from across the country to explore how our Foundation can deepen our leadership work and advance goals such as strengthening civic engagement, fostering collaboration, and building vibrant, resilient communities for the future. Becca has led the Community Foundation of Grand Forks, East Grand Forks & Region since 2017, providing strategic guidance, fund development, and investment oversight. Under her leadership, the organization received the North Dakota Association of Nonprofit Organizations (NDANO) Partnership Building Award in 2023, the International Downtown Association (IDA) Pinnacle Award in 2020, and the North Dakota Main Street Award in 2019. Please join us in celebrating this exciting step forward. Learn more about CFLeads and ELI: https://cfleads.org/what-we-do/peer-learning/executive-leadership-institute/  If your head is spinning, it’s for a good reason! Let’s face it–the rules for using IRAs to give to charity were complicated before the OBBBA got thrown into the mix. Let’s address five frequently asked questions we’ve been hearing from attorneys, CPAs, and financial advisors as you counsel your charitable clients.
“I have a lot of clients who are 70 ½ and older. I know the new tax laws are a big deal. Did the rules change for Qualified Charitable Distributions?” This is a great question, and it’s super important. The short answer is no–the One Big Beautiful Bill Act did not directly change the IRS’s rules for Qualified Charitable Distributions, or “QCDs.” Through a QCD, a taxpayer who is over the age of 70 ½ can direct up to $108,000 (2025 limit) from an IRA to an eligible charity, including some types of funds at the Community Foundation. “I can tell there’s more to the story. What else should I know to best guide my clients who are 70½ and older?” We are glad you asked! QCDs are even more tax-savvy after the One Big Beautiful Bill Act because they bypass the new 0.5% adjusted gross income floor that will apply to itemized charitable deductions starting in 2026. Unlike other gifts, QCDs also avoid the 35% cap on deduction value for high-income taxpayers, preserving their full tax benefit. Because they reduce taxable income directly without requiring itemization, QCDs provide retirees a simple, consistent way to maximize charitable impact in a more restrictive tax environment. “When should I call the Community Foundation if I have a client who is a good candidate for a QCD?” Anytime! Several types of funds at the Community Foundation are eligible recipients of Qualified Charitable Distributions, including field-of-interest funds, designated funds, and unrestricted funds. Although your client’s donor-advised fund is not a permissible QCD recipient under IRS rules, our team is happy to work with you and your client to establish another type of fund alongside an existing donor-advised fund and set in motion an overall strategy that meets both the client’s financial and estate planning goals as well as the client’s goals for community impact. “Remind me again why IRAs are such powerful legacy gifts to charity?” Clearly, IRAs are tax-savvy savings vehicles during a client’s lifetime because contributions to traditional IRAs may be tax-deductible. Plus, the assets inside the account grow tax-deferred, allowing returns to compound. Leaving an IRA to charity at death, such as to a client’s fund at the Community Foundation, is also tax-savvy. The assets avoid income tax because the charity, unlike heirs, can withdraw the funds tax-free. The assets also escape estate tax because charitable bequests are fully deductible from the taxable estate. “Does the whole QCD have to go directly to the charity?” No! A special type of QCD allows your client to make a “split interest” gift to either a charitable remainder trust (CRT) or charitable gift annuity (CGA). The 2025 per-taxpayer limit for this so-called “legacy IRA” is $54,000. Note that the CGA option may be the most attractive option for your clients because of the significantly greater administrative burdens of setting up a CRT. Please reach out to the Community Foundation anytime. We are happy to set up a charitable giving plan that allows your client to make QCDs to help achieve their charitable goals.  Understandably, nonprofits often worry that donor-advised funds may delay or diminish their donors’ contributions. In reality, though, donor-advised funds can be very helpful to boost financial support for your mission. Three fundamental concepts are important to gaining a better understanding of how donor-advised funds work at the Community Foundation.
Many options are available at the Community Foundation. It’s important to note that a donor-advised fund is just one of many types of funds that an individual, family, or business can establish with the Community Foundation. You’re likely more aware of donor-advised funds than other types of funds because they are frequently covered in financial media and also because your organization might have received grants from specific donors through their donor-advised funds. Dollars in donor-advised funds are already set aside for charitable giving, and it’s very convenient for donors to use their funds to support favorite organizations–like yours. The Community Foundation encourages donors to give directly. Rest assured that the team at the Community Foundation encourages donors to give directly to their favorite charities when that’s the best strategy to achieve a donor’s estate planning, tax, and charitable goals. When that’s not a viable option, though, both the donor and the charity benefit from the donor using a donor-advised or other type of fund at the Community Foundation. Examples include cases where the donor wants to give a complex asset, such as real estate or closely-held stock, or needs to plan out several years of giving to address fluctuating income levels and tax liability. Some donors also prefer to give anonymously, and a donor-advised fund can help with that. Donor-advised funds are becoming increasingly popular. Donor-advised funds are attractive vehicles to help donors organize their giving. In turn, donor-advised fund sponsors—including community foundations—continue to channel billions of dollars in contributions annually to thousands of charities through these vehicles. When donors begin giving through a donor-advised fund, their annual support for organizations often increases significantly, underscoring donor-advised funds’ potential to deepen long-term donor engagement. The Community Foundation is always happy to provide an overview of how these vehicles work and why donors set them up in the first place. Please reach out anytime. |
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