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.

• Dylan Berg brings more than a decade of nonprofit leadership experience, currently serving as Chief Operating Officer of Phi Delta Theta’s General Headquarters. A lifelong North Dakotan, Dylan is deeply invested in community development and collaborative philanthropy, including his work leading a major capital campaign through the Park River Area Legacy Fund.
• Sue Bjornstad has called the Grand Forks area home for over 45 years and has a long history of volunteering, fundraising, and supporting local organizations. Her professional experience with several regional foundations, paired with her commitment to giving back through time, talent, and treasure, makes her a valuable addition to the board.
• Sandy Kovar is a co-founder of the TEARS organization and a dedicated advocate for mental health, resilience, and community connection. Through compassion and purpose-driven leadership, Sandy has transformed personal loss into meaningful action that continues to positively impact individuals and families across our region.

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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.
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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.

​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!
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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:

• Fundamentally, regardless of tax benefits, your clients’ charitable intent is driven by values, legacy, and a desire for community impact. (No one gives away a dollar to save 35 cents!) That’s why you want to offer your clients the most effective charitable planning vehicles available to achieve charitable goals. A donor-advised fund at the Community Foundation often plays a crucial role in a client’s overall philanthropy structure. Here’s why:
• A donor-advised fund still allows clients to separate the timing of their charitable deduction from the timing of their actual grants to favorite charities, thereby preserving flexibility in years when income is unusually high or coming in handy when planning around liquidity events, even if the deduction is partially constrained under new laws.
• Community foundation donor-advised funds, in particular, provide benefits that extend well beyond the tax code. That’s because of our team’s local expertise, deep knowledge of regional nonprofits, and ability to help your clients align their giving with real community needs.
• When you work with the Community Foundation, you can confidently recommend a donor-advised fund because you know the client will receive administrative simplicity, top-notch service, and plenty of opportunities for deep community connections and multigenerational philanthropy.

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.
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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.
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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!
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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!