Unless. 

It’s a simple word, underwhelming even. It’s easy to miss the potential of one “unless.”

Eighty-four years ago, one “unless…” changed my family’s path forever. 

My grandfather was dirt poor, literally. In his own words, he grew up, “...in a dirt floor shack in the foothills of Missour-a.” He was the fourth of seven siblings, the oldest boy. The Great Depression got to his father, like so many others. He left for work one day and never returned, abandoning his wife and seven young children in a state they didn’t know. Somehow, they all made it back to family in Iowa, where the children were separated among aunts and uncles after their mother’s mental health became too overwhelmed by the anxiety of it all.

By all accounts, my great-grandfather was a generally terrible man with one redeeming quality: he was extraordinarily smart. Definitely not socially, or emotionally. More like Good Will Hunting, solving complex calculus on the hallway chalkboard smart. This trait was passed on to my grandfather, though it went unseen as he spent countless hours laboring at a neighboring dairy farm.

Four days before my grandfather’s 20th birthday, Pearl Harbor was attacked. He knew he would be called to serve, but wanted to control his own destiny. He’d heard stories of the trenches in World War I. He didn’t want to die that way. He went to the Army recruiter’s office and made his request: he wanted to be an Army Air Corp pilot.

“I’m sorry, son, you have to have a college degree to be a pilot” the recruiter told him.

His heart sank. College hadn’t been in the cards for him. He thanked the recruiter for his time and began to leave. As he reached for the door, the recruiter called out: 

“...unless you can pass the test.”

As 2025 continues to deliver twists and turns, it’s important to keep talking about philanthropy. Charitable giving is a vital strategy for your clients, even in times of economic uncertainty. Here are three trends to watch as you guide your clients through an unpredictable era and encourage them to look beyond the horizon.

Your clients still want to give
While overall giving may dip during economic downturns, most of your philanthropic clients will continue to support their favorite charities. Indeed, giving often rebounds quickly alongside economic recovery. Donor-advised funds, in particular, have shown resilience and even growth during economic shocks, providing a stable source of support for nonprofits and a flexible tool for your clients. This support is crucial because economic upheaval often increases community need, which in turn creates more demand for nonprofits’ services. Often, as was the case during the pandemic, donors rise to the occasion. By working with the Community Foundation, your clients can stay close to the tangible, local impact of their giving.

Legislation is still percolating
At the moment, key provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire at the end of 2025, potentially impacting the charitable strategies you recommend to clients. Notably, though, on February 13, 2025, lawmakers in both the House and Senate introduced the Death Tax Repeal Act of 2025, aiming to permanently eliminate the federal estate tax and the federal generation-skipping transfer (GST) tax. Needless to say, if this act becomes law, the landscape of tax planning will change dramatically. On a happy note, under recently-proposed legislation, clients over the age of 70 ½ would be able to make Qualified Charitable Distributions to donor-advised funds at the Community Foundation. Under current law, eligible fund recipients of QCDs are limited to designated, field-of-interest, unrestricted, and similar funds.

Focus on the future
Some of your clients may be wondering just how much they can truly accomplish through philanthropy, especially right now. The answer is a lot. Sometimes called “big bet philanthropy,” strategies to leverage charitable dollars to tackle systemic social issues are becoming more popular. “Long-haul” initiatives require sustained commitment, collaboration, and capacity-building among both donors and the nonprofit organizations they support. Thanks to its mission to connect donors to community needs, the Community Foundation is in a unique position to work with your clients who want to pursue this form of charitable giving.
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Please reach out to the team at the Community Foundation anytime. Even during economic upheaval, charitable giving remains a powerful tool for tax planning and durable community impact. Thank you for your continued work to help your clients maximize their positive influence on our community.

The team at the Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.

The number of private foundations in the United States is nearing 150,000 with combined assets topping $1 trillion, so it’s no wonder that a lot of people immediately think about establishing a private foundation when they begin to explore structuring their charitable giving activities. You’re likely working with several clients who’ve established private foundations somewhere along the way.
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Recently, though, the growth of donor-advised funds to nearly 2 million in number - with grants from these vehicles reaching $50 billion in some years - signals that many people are starting to use both a donor-advised fund and a private foundation. Some of your clients may even be considering transferring a private foundation’s assets to a donor-advised fund at the Community Foundation to carry out the family’s mission. This particular trend is on the rise, so take a moment to skim this checklist to help guide conversations.

“Reality check” the hassle. Day-to-day management and administration of a private foundation can become time-consuming, especially as the responsibilities fall to second- and third-generation family members. Even the first generation may realize at some point that administrative work is taking too much focus away from nonprofits, the community, and making grants.

Review the tax rules. The IRS’s rules related to investments, distributions, and “self-dealing” are complex. Over time, family members may become frustrated navigating the potholes of tax compliance. For instance, if a client plans to transfer all or part of a family business, now or in the future, it is critically important to communicate the benefits of using a donor-advised fund at the Community Foundation versus transferring the business interests to a private foundation (which can be disastrous from a tax standpoint).

Lean on the Community Foundation. Our team is happy to walk alongside you and your client through the steps to terminate a private foundation and move the assets to a donor-advised fund at the Community Foundation. The first step is for the board of the private foundation to approve the termination and capture that approval in meeting minutes or a consent of directors.

Set up a donor-advised fund. Your client can establish a donor-advised fund at the Community Foundation and choose the name (e.g., Smith Family Foundation Fund). Similarly, selection and succession of fund advisors (who will handle grantmaking) can mirror the private foundation’s board structure. As a result, the donor-advised fund will look and operate a lot like the private foundation.

Make a grant. The private foundation will distribute (“grant”) most of its net assets to the newly-established donor-advised fund. The private foundation will need to be sure it pays all of its liabilities and expenses before accounts are closed, so your clients will want to leave a reserve in the private foundation to cover final bills before completing the termination.

Finalize the termination. As long as the private foundation corporate entity is in good standing according to state laws, termination for tax purposes will be automatic and smooth because assets were transferred to the Community Foundation, a longstanding organization. The private foundation will then simply file an informational tax return with the Internal Revenue Service for its final year (even if it is a short tax year). The final step is for the private foundation to take any steps required for termination under the laws of any and all states in which it was registered, especially if the private foundation was organized in corporate form.

Whether your client is ready to transfer a private foundation this year or is simply evaluating options, please give us a call. We’re happy to help!

The team at the Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.

​If you’re looking at your endowment-building goals for 2025 and feel a wave of uncertainty wash over you, you are not alone! Charities everywhere are facing mounting challenges in 2025 as economic uncertainty, market volatility, and shifting donor priorities threaten endowment giving. The Community Foundation is here to help ensure that your endowment fund and efforts to grow it remain robust, which in turn fosters the stability of your mission.

Here are 3 forward-thinking, donor-centric strategies to consider right now to avoid losing momentum on your endowment-building efforts:

Focus on Current Donors
Retaining existing donors is more cost-effective and impactful than acquiring new ones, especially during economic downturns. Be sure to maintain regular, transparent communication with endowment and legacy donors, sharing real-time updates on how their gifts are making a difference. Express appreciation through personalized recognition, such as thank-you calls from board members, special events, or exclusive updates. You can also offer tailored engagement opportunities, such as site visits or meetings with people your organization has helped, to deepen donor connection and trust. In times of uncertainty, your donors want assurance that their contributions are well-managed and impactful.

Share Compelling Stories
Donors - especially those considering or maintaining endowment gifts - are increasingly focused on impact and results. To build and sustain trust, highlight specific stories and data that demonstrate the real-world results of endowment giving. Invite donor feedback and, where appropriate, involve them in discussions about endowment management or future priorities. Indeed, a 2023 survey found that 70% of donors consider transparency a key factor in their giving decisions. By proactively sharing information and outcomes, charities can reassure donors and encourage continued or increased endowment support.

Offer Choices
Economic upheaval often prompts donors to reassess how and what they give. Meet your donors where they are right now by offering a range of planned giving options, such as charitable trusts, bequests, gifts of appreciated securities, or retirement assets, to accommodate donors’ financial planning needs. At the same time, make giving as simple and flexible as possible, including digital platforms for recurring or micro-donations, and options for non-cash gifts. Related, consider designing your communications to provide personalized experiences, recognizing that different donor demographics respond to different messages and opportunities.

The Community Foundation is here for you! We are honored to help you maintain strong relationships and keep your endowment efforts resilient, even as economic conditions fluctuate.
 
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

The news from the stock market has not been rosy! Investor confidence is rattled and many households are reassessing their financial priorities. Despite increasing challenges brought on by 2025’s turmoil, it’s important to remember that your organization and other charities are presented with a unique opportunity to lean into planned giving discussions.

Certainly many donors are feeling less secure about their finances amid a challenging economic climate and the recent stock market downturn. Understandably, In this environment, donors may be more hesitant to make large gifts or even maintain previous levels of annual giving, preferring instead to preserve liquidity and safeguard their immediate financial well-being.

This is where planned giving comes in. Planned giving offers you and your colleagues a compelling alternative because donors can make a significant, lasting impact without affecting their current cash flow through bequests or beneficiary designations that take effect in the future to support your organization’s endowment.

Unlike annual gifts, planned gifts are less vulnerable to short-term market volatility and provide a more predictable, stable revenue stream—critical for organizational resilience during uncertain times. By proactively engaging donors in thoughtful planned giving conversations, you can help your supporters feel confident about their legacy and financial security, while also ensuring your organization’s long-term sustainability despite today’s economic headwinds.

Please reach out to the Community Foundation! We’re always happy to offer suggestions and resources to help you maintain momentum with your planned giving program.

This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

If you are 70 ½ and older, by now you’ve likely heard about a charitable giving tool called a Qualified Charitable Distribution (“QCD”), allowing you to direct a distribution from your IRA to an eligible charity, such as a designated fund, unrestricted fund, or field-of-interest fund at the Community Foundation. With a 2025 limit of $108,000 per taxpayer, QCDs count toward required minimum distributions (RMDs) but are excluded from taxable income, which can help you avoid higher tax brackets and phaseouts of deductions.

The Community Foundation team is here to help you make the most of charitable giving tools, including QCDs. A frequently-asked question about QCDs is whether they can be used to add money to a donor-advised fund. The answer is no–for now. While most public charities qualify as QCD recipients, donor-advised funds, private foundations, and supporting organizations do not under current law. Recently-proposed legislation, however, aims to further expand QCD eligibility by allowing distributions to donor-advised funds.

If enacted, this change would give you and other eligible donors even more flexibility in maximizing your philanthropy. Indeed, a donor-advised fund is often the “hub” of a family’s charitable giving because it makes it so easy to stay organized and track support to favorite charities over the years. It’s becoming common for a family to add to its charitable giving “portfolio” by establishing a designated or field-of-interest fund alongside the donor-advised fund, as well as giving to the Community Foundations initiatives through the donor-advised fund. In many cases, family members also update their estate plans to include bequests to their funds at the Community Foundation.

A QCD is a wonderful tool, and we’ll keep our fingers crossed that it becomes even more wonderful. As always, the Community Foundation will keep you posted on this and other tax law changes that may impact your plans for supporting your favorite causes and the community we all love. 

The team at the Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.

Economic turbulence, inflation concerns, and a general sense of financial instability have made 2025 very challenging for a lot of people. As you consider how to support your favorite charities this year, take a moment to evaluate which assets may be best suited for your donations. In particular, the choice between giving cash or appreciated stock can have a meaningful impact on both your finances and the charities you support. The team at the Community Foundation is here to help answer your questions, including a few that are very common this year:

Should I give stock?
If you are concerned about preserving cash right now, then donating appreciated, publicly-traded stock can be a highly-effective strategy. By transferring long-term, marketable securities directly to a donor-advised or other type of fund at the Community Foundation, you avoid capital gains tax and may be eligible for an income tax deduction based on the fair market value of the securities. The Community Foundation, in turn, can sell the securities without incurring tax, maximizing the dollars available to support your favorite charities. Even in a down market, many investors still hold stocks that have appreciated over time, making this a win-win for both you and the causes you care about.

Should I give cash?
If your investment portfolio has declined significantly across the board, you may prefer to contribute cash this year. Doing so allows your investments time to recover, potentially increasing their value for future charitable gifts. Contributing cash to your fund at the Community Foundation allows you to organize your giving in one place, making it easier to gather tax information when April 15 rolls around again.

How can my donor-advised fund help in challenging times for our community?
Donor-advised funds offer flexibility for your charitable giving, particularly in unpredictable market conditions. By contributing to a donor-advised fund, you receive an immediate tax deduction and can recommend grants over time, allowing you to support your favorite organizations even when your personal finances are in flux. Many people like having a reserve of charitable funds that enables them to maintain consistent support for the causes they love, regardless of market ups and downs.
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What else should I consider as I plan my charitable support this year?
Giving strategically in uncertain times is important to help stabilize the charities in our community and allow them to continue to support people in need. The Community Foundation can help you formalize long-term commitments while also ensuring that immediate needs are addressed. Maintaining support for the organizations you care about ensures their continued impact, even when resources are tight.
The team at the Community Foundation is here to help you make a difference in our community as economic pressures mount. Please reach out to discuss the best options to achieve your charitable goals, even in a year as unpredictable as this one.

The team at the Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.