​Grand Forks, ND – The Community Foundation of Grand Forks, East Grand Forks & Region in partnership with the Knight Foundation Donor-Advised Fund have awarded a $53,000 grant to the Town Square Farmers Market to advance their exploration of a downtown food hub and public market hall. This year-long initiative will complete a comprehensive site feasibility study while providing targeted technical assistance to help local producers build the capacity, infrastructure, and operational knowledge needed to scale sustainably.

"When we invest in local food systems, we're building economic resilience across the region. This grant removes real barriers that prevent small-scale producers from building lasting capacity," says Becca Baumbach, President & CEO of the Community Foundation. “By combining site development with technical support, the Town Square Farmers Market is creating the conditions for long-term success.”

The proposed food hub will serve as a year-round community destination where local entrepreneurs can launch and grow their businesses while building meaningful connections throughout the region. “It has the potential to become much more than a place to shop for local products,” said Dawn Rognerud, President of the Town Square Farmers Market. “We envision it as a vibrant community destination where small entrepreneurs can launch and grow their businesses with the support, resources, and connections they need to succeed.”

Since 2000, the Town Square Farmers Market has welcomed thousands of visitors each summer while supporting local growers, food producers, artisans, and small businesses. The proposed food hub builds on that legacy by creating a permanent space that expands economic opportunity and strengthens connections between rural producers and their consumers.

About the Town Square Farmers Market 

The Town Square Farmers Market inspires and nurtures a healthy community by building a local and sustainable food economy in a vibrant, educational, and culturally expansive marketplace. Since 2000, the market has connected residents with local growers, artisans, food producers, and community organizations while serving as one of downtown Grand Forks’ signature community gathering places. 

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 charitable funds and provides grants to qualified nonprofit organizations, public entities, and other charitable causes. Since 1998, the Foundation has granted $16 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.

You’ve no doubt seen the report that in 2025, Americans contributed an estimated $617 billion to support nonprofits. Philanthropy is going strong! It’s also likely not a surprise that donor-advised funds continue to play a growing role in charitable giving. Across the country, more donors are using donor-advised funds to organize their philanthropy, make grants to favorite nonprofit organizations, and involve family members in giving decisions. The Community Foundation offers donor-advised funds to families, individuals, and businesses to help maximize the dollars that ultimately flow to support a wide range of charities, including local organizations like yours that are making a difference every single day. 

Yet despite the growth of these vehicles, many nonprofit organizations still find them somewhat mysterious. One of the most common frustrations nonprofit leaders express to the Community Foundation team is that, because grants arrive from the Community Foundation rather than directly from the donor, nonprofit leaders may feel disconnected from the people whose generosity is supporting their mission.

The good news is that donor-advised fund donors are often exactly the type of supporters that you and other nonprofits want to cultivate. Research and industry reports consistently show that donor-advised fund donors tend to be thoughtful philanthropists who are actively engaged in charitable planning and frequently work with attorneys, CPAs, and financial advisors to maximize their impact. 

The team at the Community Foundation is always happy to have a conversation about why donor-advised funds are actually not a barrier to your donor relationships, but rather an important tool that fits into a donor's broader charitable giving strategy. We look forward to a conversation! In the meantime, here are three ways you can strengthen your relationships with donor-advised fund donors.

1. Recognize that a donor-advised fund is a giving tool—not a donor

A donor-advised fund is simply a vehicle for charitable giving. Behind every donor-advised fund grant are real people who have intentionally recommended support for your organization.

When a grant arrives from a donor-advised fund at the Community Foundation, try to avoid treating it as a transaction from a financial institution. Instead, look for opportunities to identify and thank the individual donor whenever possible. Even when the grant itself comes from the Community Foundation, the charitable decision originated with a person who believes in your mission.

2. Make it easy for donor-advised fund donors to support your organization

Many nonprofits now include information on their websites and donation materials about how donors can give from their donor-advised funds. Simple reminders that your organization accepts grants from donor-advised funds can help donors understand that this option is available.

You may also want to ensure that your organization's legal name, tax identification number, and contact information are easy for the team at the Community Foundation to locate. Our team needs this information to receive and process grant requests from donor-advised fund holders.

3. Steward donor-advised fund donors the same way you steward other donors

Some organizations unintentionally place less emphasis on donor-advised fund gifts because the donation arrives through an intermediary. This can be a missed opportunity.

Donor-advised fund donors should receive meaningful stewardship, impact reporting, invitations to engage, and ongoing communication whenever possible. The fact that a donor uses a donor-advised fund does not make the relationship less personal. In many cases, these donors are among an organization's most committed supporters. 

In addition, it’s important to know that the Community Foundation gives donors access to resources, information, and education about local organizations and how to make maximum impact. We encourage donors’ active involvement with the community and the nonprofits they support. We take seriously our role as a convenor and champion for local quality of life. 

The bottom line
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As charitable giving tools become increasingly sophisticated, nonprofits in our community can benefit from understanding the tools donors use to support the causes they care about. Donor-advised funds are no longer a niche giving vehicle. They have become an important part of modern philanthropy and are likely to remain so for years to come. The Community Foundation is always happy to help your organization stay informed about charitable giving trends and identify opportunities to strengthen donor engagement. We look forward to our next conversation! ​

At the Community Foundation, we regularly hear from nonprofit leaders that getting your board engaged in the right ways can be a challenge. And that’s on top of the already high bar to recruit board members in the first place! Finding—and motivating—qualified people who are passionate about your mission, willing to volunteer their time, and prepared to serve as ambassadors for the organization can feel harder than ever.

At the same time, the expectations placed on nonprofit boards continue to grow. Today's board members are not simply expected to attend meetings and vote on motions. They are expected to provide oversight, ensure financial accountability, uphold the organization's mission, support fundraising efforts, and help position the nonprofit for long-term success. 

As you evaluate your board's effectiveness, consider whether members are equipped to contribute in several key areas:

Governance and oversight

Board members should understand the organization's finances, review materials before meetings, ask thoughtful questions, and participate actively in decision-making. Good governance requires more than just showing up. It requires paying attention, and it requires genuine engagement.

Mission and strategy

Strong boards help keep the organization focused on its purpose. They understand the mission, participate in strategic planning, and help leadership navigate challenges and opportunities while remaining true to the organization's core values. Strong boards also understand the difference between board and staff roles and, accordingly, empower the staff to carry out the organization’s operations. 

Fundraising and relationship building

Not every board member needs to ask for gifts. However, every board member should be willing to help advance the organization's development efforts. Sometimes that means making a personal contribution or arranging for a legacy gift. Sometimes it means hosting an event, introducing a friend to the executive director, or helping identify prospective funders. The most successful nonprofit boards understand that fundraising is a shared responsibility. 

Community connections

Many nonprofit organizations recruit board members because of the relationships they bring to the table. A board member's network can help create introductions to major donors, family foundations, corporate partners, elected officials, and community influencers. These connections can be invaluable in expanding awareness and support for the mission.

Advocacy and ambassadorship

Board members are often among a nonprofit's most visible representatives. Their willingness to speak positively about the organization, attend events, and share the impact of its work can significantly strengthen public trust and community engagement.

Remember that an “elevator pitch” is not always the best vehicle to support board member advocacy. An elevator pitch tends to get too long, often sounds “canned,” and sometimes is developed through a lengthy process of “analysis paralysis.” Instead, encourage board members to simply speak from the heart about why they joined the board and then introduce interested people to you and your team for follow up.

Building the board your organization needs

Many nonprofits inherit board structures that were created years ago under very different circumstances. As organizations grow, it is worth periodically asking whether the board's composition aligns with current needs. Do you have members with financial expertise? Legal expertise? Fundraising experience? Community connections? Relationships with prospective donors and funders? A board composed entirely of passionate supporters may still have important gaps that need to be filled.

The good news is that intentional recruitment, orientation, and ongoing board development can help close those gaps. The goal is not simply to fill seats around a table. The goal is to build a board that can provide strong governance while also helping your organization expand its impact. 

As always, the Community Foundation is happy to serve as a sounding board as your organization evaluates board development, fundraising strategy, and long-term sustainability. Please reach out!

Many nonprofit organizations are fortunate to be surrounded by long-time supporters whose generosity has sustained the mission for years, and sometimes decades. These donors often remain deeply committed to the causes they care about well into their later years. As the donor population ages, however, nonprofit professionals increasingly find themselves navigating situations that require both sensitivity and caution.

Most interactions with older donors are straightforward and positive. But occasionally, a donor's behavior, requests, or circumstances may raise concerns about cognitive decline, undue influence, financial exploitation, or simply a misunderstanding about charitable intentions. Of course, you and other nonprofit staff are not expected to diagnose medical conditions or serve as financial advisors. Still, because fundraisers often develop trusted, long-term relationships with donors, you may be among the first people to notice that something seems different.

Here are five signs that may warrant a thoughtful pause and a closer look.

1. The donor seems unusually confused about previous gifts or commitments

A donor who suddenly cannot remember making recent gifts, repeatedly asks the same questions, or appears confused about longstanding charitable arrangements may be experiencing challenges that deserve attention.

Of course, everyone occasionally forgets details. The key is whether the behavior represents a noticeable change from the donor's normal pattern. If so, it may be wise to slow the conversation, provide written summaries for the donor and for your files, and encourage the donor to review decisions with a donor’s trusted family members or legal advisors when appropriate.

2. Grant recommendations or gift requests are dramatically different from past behavior

People's interests evolve, and donors certainly have the right to support new causes. However, a sudden and dramatic shift in giving priorities can sometimes be a signal that additional questions are warranted.

For example, a donor who has supported local education initiatives for decades may unexpectedly request a large gift to an unfamiliar national disease research organization they recently encountered through a phone solicitation, email, or direct-mail campaign. While the gift may be entirely legitimate, nonprofit professionals should feel comfortable asking open-ended questions to ensure the donor understands the mission of the organization they wish to support and how the gift aligns with their goals. 

3. A new individual is speaking for the donor or directing decisions

Family members, caregivers, and advisors often play appropriate and important roles in supporting older adults. At the same time, nonprofit staff should pay attention when a previously independent donor is suddenly accompanied by someone who insists on controlling conversations, answering questions on the donor's behalf, or directing charitable decisions.

The presence of a helper is not itself a concern. What matters is whether the donor appears comfortable, informed, and genuinely engaged in the decision-making process. When possible, organizations should make reasonable efforts to hear directly from the donor and confirm that charitable decisions reflect the donor's wishes, and then prepare appropriate documentation.

4. The donor mentions suspicious financial activity or unusual solicitations

Older adults are frequently targeted by scams, fraudulent charities, deceptive sweepstakes, and aggressive fundraising tactics. During conversations, donors may mention receiving constant requests for money, confusing invoices, urgent appeals, or pressure from unfamiliar organizations.

These comments often provide an opportunity for education and support. Certainly nonprofit staff should avoid giving legal or financial advice, but if you are faced with this situation, you can encourage donors to discuss concerns with trusted family members, attorneys, accountants, financial advisors, or representatives of the Community Foundation. Helping donors access reliable resources can be an important form of stewardship.

5. Important documentation has not been reviewed in many years

Beneficiary designations, estate plans, powers of attorney, and charitable provisions often remain untouched for years, even as circumstances change. Aging donors may assume that documents signed long ago still accurately reflect their wishes.

A gentle reminder to review charitable plans periodically can help donors ensure that their intentions remain current and clearly documented. This is particularly important when donor-advised funds, endowment gifts, planned gifts, or other long-term charitable arrangements are involved.

So what can you do?

The best course of action is to prepare yourself well before any red flags appear. Encouraging donors to introduce you to their advisors and other family members early in the relationship gives you plenty of time to build natural connections with the people they trust. Those relationships can be invaluable if concerns later arise. 

Of course, you will approach any situation with an aging donor with empathy and respect. Most older donors remain fully capable of making thoughtful charitable decisions and should be treated accordingly. At the same time, organizations understandably feel obligated to exercise good judgment when circumstances raise questions. If you are already encountering red flag situations and you don’t have a connection with trusted people in a donor’s life, consult your colleagues and potentially even your organization’s legal advisors.

The bottom line is that this is a very tricky area where donor stewardship, situational awareness, and confidentiality considerations overlap. Being prepared ahead of time is well worth your attention.  

"Life is what happens to you while you're busy making other plans." — John Lennon

You’ve certainly heard that well-known quote. But have you thought about it in the context of your charitable giving? It’s common to create a charitable giving plan during a particular season of life. Perhaps you established a donor-advised fund after selling a business, included charitable gifts in your estate plan when your children were young, or began supporting favorite causes after retirement.

Over time, however, your life changes—and so does the community around you. Families grow, financial circumstances shift, priorities evolve, and our community faces new challenges. Organizations you care about may expand their missions or collaborate with other nonprofits tackling similar needs. Just as financial and estate plans benefit from periodic review, your charitable plan deserves an occasional checkup as well.

If it has been a few years since you've revisited your charitable goals, consider reaching out to the Community Foundation team. We’d be happy to serve as a sounding board as you ask yourself a few questions.

Examples include:

Are the causes I support today the same causes I cared about ten years ago?

Many donors find that their interests evolve over time. You may have become passionate about education, environmental conservation, healthcare, animal welfare, faith-based initiatives, or other causes that were not top priorities years ago.

Does my charitable plan still reflect my family's values?

Children and grandchildren often develop interests and perspectives of their own. Many families discover that charitable giving provides a meaningful opportunity to discuss values, generosity, and community impact across generations. The result is that families want to adjust their charitable priorities to reflect the interests of the family’s next generation. 

Have I reviewed my retirement account beneficiary designations recently?

Perhaps you’ve already worked with your advisors to update beneficiary designations of your retirement plans. Even so, it’s a good idea to take a look at those documents every few years to be sure nothing is missing. And if you’ve not yet named your fund at the Community Foundation or another charity as a beneficiary of IRAs and other retirement accounts, it’s worth exploring because of the potentially meaningful tax benefits of these arrangements. Be sure to ask your tax advisor about whether this technique could be a fit for you, and reach out to the Community Foundation team to help set your intentions in motion.

Do I know how local needs have changed?

Communities are constantly evolving and ours is no exception. While many longstanding needs remain, new challenges and opportunities often emerge over time. New opportunities to make a difference pop up every year, and learning about them can inspire you to get involved. The Community Foundation is a valuable resource to provide not only the big picture of what’s going on in our region but also specific examples of how nonprofits are meeting the most pressing community needs. 

Am I making this as easy on myself as possible?

You want to experience the joy of giving—not add administrative layers! Many donors appreciate opportunities to simplify their philanthropy. Whether through a donor-advised fund, another type of fund at the Community Foundation, or a combination of funds designed to achieve different goals, the right structure can make giving more organized and enjoyable.

Remember that updating your charitable plan does not necessarily require major changes. Sometimes a simple conversation with the Community Foundation team is enough to confirm that everything remains on track. Other times, donors discover opportunities to strengthen their impact, engage family members, or support causes in new ways.

The Community Foundation is always happy to help you review your charitable goals and explore ways to ensure that your philanthropy continues to reflect your values, your family, and your hopes for the future. We look forward to our next conversation!  

At the Community Foundation, we are honored to work with many families across multiple generations. Quite frequently, parents and grandparents share with us their hopes of passing along to the next generation more than just financial assets. They want to pass along values, encourage generosity, and foster a lifelong commitment to community.

In many of these conversations, parents and grandparents ask how they can get teens involved. "The teenage years can be tricky," they tell us. "But we also know this is an important time to begin conversations about philanthropy." And that’s certainly true! Teens are old enough to understand community challenges, form opinions about issues they care about, and make thoughtful decisions about how they want to help. 

For parents, it’s likely worth exploring the research behind the benefits of getting teens involved in the community. In particular, a landmark study published eight years ago (and still relevant) in the Journal of Adolescence found that altruistic behaviors—such as learning about and assisting strangers—not only appeal to adolescents, but actively raise their self-esteem and feelings of self-worth.

No matter how compelling the strategy may be, however, getting teens involved is often easier said than done. The team at the Community Foundation is happy to help. Here are ten suggestions for simple ways to start the process. 

1. Ask what they care about

Many adults begin by talking about charities they support. Instead, start by asking your teen what issues matter to them. They may be passionate about animals, the environment, education, healthcare, mental health, or helping neighbors in need. Listening first can create a stronger foundation for future conversations and ultimately deeper community engagement.

2. Volunteer together

Giving involves more than writing checks. Spending even just an hour volunteering as a family can help teens see firsthand how nonprofit organizations serve the community and why charitable support matters. 

3. Let them help make giving decisions

If your family uses a donor-advised fund at the Community Foundation, consider inviting teens to recommend a portion of the annual grants to nonprofit organizations they believe in. Even small decisions can help them gain confidence and feel invested in the family's philanthropy. Some families even choose to establish a donor-advised fund for a child or grandchild when they reach adulthood, using cash or appreciated assets to help launch a lifetime of charitable giving.

4. Visit local nonprofits

Many nonprofit organizations welcome visitors and offer tours or informational meetings. Seeing an organization's work in action often leaves a lasting impression and helps young people understand the impact of charitable giving. Again, this does not need to take a lot of time. Even a 20-minute visit can be eye-opening. The Community Foundation team is happy to offer suggestions and make connections.

5. Encourage teens to research charities

Ask your teen to identify a cause they care about and jump online to learn more about organizations addressing that issue. This can help develop critical thinking skills and introduce concepts such as nonprofit missions, effectiveness, and community impact. Feel free to ask the Community Foundation team to suggest websites, books, and other educational resources if your teen wants to learn more. 

6. Talk about family values

Charitable giving often reflects deeply held beliefs and priorities. Sharing stories about why your family supports certain causes can help teens understand that philanthropy is about more than money—it's about making a difference. For example, if your family has supported a particular nonprofit for many years because of a personal connection, take the time to explain to your teen the history and original connection. 

7. Help them give their own money

Whether it is a portion of an allowance, earnings from a summer job, or birthday money, encouraging teens to make their own charitable gifts can be a powerful learning experience. It always feels more “real” to spend your own money, and charitable giving is no exception. 

8. Introduce teens to community leaders

This suggestion surprises many parents and grandparents who wish they would have thought of it sooner! Think of all the people you know who are making a difference every day in the community, whether working at a nonprofit, serving in a civic leadership position, or leading philanthropy efforts for a business. These conversations can inspire teens by showing them how individuals—real people—can create meaningful change.

9. Invite teens to Community Foundation events

Many events hosted by the Community Foundation may be well-suited for your teen to attend, especially when our team is presenting information about community needs or celebrating a community milestone. The next time you plan to attend a Community Foundation event, consider asking our team whether it might be appropriate to bring a teenage child or grandchild. We are also happy to suggest upcoming events that may be especially engaging for young people.

10. Focus on progress, not perfection

To state the obvious, there is no single right way to raise charitable children and grandchildren! The goal is not to create experts overnight. Instead, focus on creating opportunities for curiosity, learning, and participation. Small—even very small—experiences can help teens build lifelong habits of generosity and civic engagement.

One of the greatest gifts you can give the next generation is an understanding that they have the power to make a difference. The Community Foundation would be delighted to help!

At the Community Foundation, we work with a wide range of donors who want to support favorite charities and causes they care about. Sometimes we meet with individuals and families who have already begun their charitable giving journey by establishing a donor-advised fund at a national charitable sponsor or commercial provider. 

Over time, many donors discover that they want something more. They want to learn about local needs, connect with nonprofits making a difference in their community, involve family members in giving decisions, and work with people who understand the place they call home. For these donors, transferring a donor-advised fund from a national charitable sponsor or a commercial provider to the Community Foundation can be a natural next step.

The good news is that moving a donor-advised fund is often easier than people expect. Here is a simple guide to the process.

Step 1: Start a conversation with the community foundation

The first step is simply to reach out. The Community Foundation team can learn about your charitable interests, answer questions, and explain how a donor-advised fund at the community foundation can support your goals. Many donors are surprised to learn that a Community Foundation offers not only the convenience of a donor-advised fund, but also local knowledge, philanthropic expertise, and a long-term commitment to strengthening the community.

Step 2: Map out a fund that reflects your values

One of the most enjoyable parts of the process is designing a fund that reflects your family's charitable vision. You can choose a fund name, such as the Smith Family Fund or Smith Family Foundation, designate fund advisors, and discuss how future generations might become involved. Many donors use this opportunity to create a structure that encourages family conversations about generosity and community impact, tapping into the Community Foundation’s resources and expertise.

Step 3: Establish your new donor-advised fund

The Community Foundation will provide a simple fund agreement that outlines how the fund will operate and who may recommend grants to nonprofit organizations. The process is typically straightforward, and the Community Foundation team will guide you through each step.

Step 4: Recommend a grant to make the transfer from your current donor-advised fund

Once your new fund is established at the Community Foundation, you can contact your current donor-advised fund provider and recommend a grant to the community foundation for the benefit of your newly created fund. In many cases, this can be completed online and requires only a few minutes.

Step 5: Confirm the details

To help ensure a smooth transfer, be sure to use the exact name of your new fund and any instructions provided by the Community Foundation. Our team will gladly help coordinate the details and answer any questions that arise along the way.

Step 6: Decide how much to transfer

Some donors transfer the entire balance of an existing donor-advised fund at once. Others prefer to transfer a portion first and move additional assets later. There is no one-size-fits-all approach. The right decision depends on your charitable goals, giving plans, and personal preferences. Some donors even choose to maintain their existing donor-advised fund at a commercial provider while also establishing a separate locally-focused donor-advised fund or other charitable fund at the Community Foundation.

Step 7: Put your philanthropy to work in the community

After the transfer is complete, you can begin recommending grants from your Community Foundation donor-advised fund. Our team is always here as a sounding board and resource if you have questions! You may already support several favorite local nonprofits, and our team is happy to discuss both these organizations and new organizations that might have caught your attention. Many donors find that this deeper connection to the local community—and to professionals who understand it—becomes one of the most rewarding aspects of their giving.

The upshot here is that any donor-advised fund can help you organize and simplify your charitable giving. By moving your fund to the Community Foundation, you also gain a local partner committed to helping you make a lasting difference close to home. If you'd like to explore whether a transfer makes sense for you, the Community Foundation team would be delighted to start the conversation!

The Community Foundation team keeps an eye on trends, research, legislative developments, and thought leadership at the intersection of charitable planning, estate planning, and wealth management. Here are three recent articles we think are especially relevant for attorneys, CPAs, and financial advisors serving charitable clients.

Charitable planning beats AI?

In the article "Why Charitable Efforts Are the Advisor's Edge in an AI-Driven World" appearing in Financial Advisor Magazine, the author suggests that charitable planning may become an increasingly significant way for advisors to differentiate themselves as artificial intelligence automates more traditional planning and investment functions. The article argues that conversations about philanthropy, legacy, and personal values create opportunities for advisors to build deeper client relationships in ways that technology cannot easily replicate, reinforcing the advisor's role as a trusted counselor rather than simply a technical expert.

Donor-advised funds continue to grow...

In Financial Advisor Magazine's article "Making Sense of the DAF Surge: Five Things Financial Advisors Should Know," the author takes a look at the continued growth of donor-advised funds and the factors driving their popularity. Among the key takeaways are that donor-advised funds simplify charitable giving, allow donors to separate the timing of tax deductions from grantmaking decisions, and facilitate gifts of appreciated assets. The article also notes that many clients increasingly expect charitable planning to be integrated into broader wealth management conversations, making familiarity with donor-advised fund strategies an important competency for advisors.

and that is good news for charities.

The article "DAF Fundraising Report: Nonprofit Takeaways" on Candid’s website highlights findings showing that donor-advised fund donors are often highly engaged philanthropists who give repeatedly and frequently make larger charitable gifts over time. The report encourages nonprofits to strengthen relationships with donor-advised fund donors, improve stewardship efforts, and make it easier for donors to recommend grants through their charitable giving accounts. This article is useful to advisors because it connects the dots among donors, donor-advised funds, and nonprofit organizations. 

What’s the takeaway?

Remember that the Community Foundation can provide a wide range of solutions for your clients’ charitable giving needs, including donor-advised funds, legacy planning, information about community needs and nonprofits, and ways to involve family members in philanthropy. We are here to support you as you serve your clients. Please reach out anytime. 

At the Community Foundation, we work with a wide range of individuals, families, and businesses for whom charitable giving is a priority, especially related to supporting causes in our community that improve the quality of life for everyone. In many cases, we’re helping business owners structure their personal and family philanthropy. A natural extension of that work is to explore ways a business owner’s succession plan can incorporate gifts to favorite charities and causes. Some attorneys, CPAs, and financial advisors are surprised to learn how many charitable planning options may be available in connection with a business succession event. The Community Foundation is here to help. 

What’s going on here?

Business succession planning is becoming increasingly important as a growing share of American wealth is tied to privately held companies. According to the National Center for the Middle Market at The Ohio State University, approximately 200,000 U.S. companies generate annual revenues between $10 million and $1 billion. At the same time, a recent Wall Street Journal article highlighted the growing ranks of wealthy Americans whose fortunes were built through private business ownership and equity growth. For many of these business owners, a succession event may represent the largest liquidity event of their lifetime. And for attorneys, CPAs, and financial advisors, these trends point to a growing need for thoughtful planning around business transitions, wealth transfer, and charitable legacy strategies.

What is most important for advisors to know?

The single most important takeaway is that charitable planning should be part of the succession conversation as early as possible. Whether a client is preparing to sell a closely held business, transfer ownership to family members, explore an employee stock ownership plan (ESOP), or simply begin thinking about life after the company, charitable planning deserves a seat at the table early in the process. Too often, philanthropy enters the conversation only after a transaction is in the works or already complete. By then, some of the most effective planning windows may be closed. By asking the right questions early, you can help your clients support meaningful causes, potentially reduce taxes, involve family members in giving, and create a lasting charitable legacy.

What questions should I ask my clients? 

Here are four “must ask” questions and why they are important, plus a word of caution.

Have you thought about including charitable giving in your business succession plan?

Many business owners have most of their wealth tied up in their companies. When a sale or ownership transition occurs, the resulting tax consequences can be significant. In some situations, contributing a portion of closely held business interests to charity before a transaction may allow a client to support charitable goals while potentially reducing capital gains tax exposure. Again, timing is key. Once letters of intent are signed or a transaction becomes binding, certain charitable planning opportunities may no longer be available. That's why advisors should raise charitable planning discussions long before the deal reaches the finish line.

Remember that charitable planning is not limited to third-party sales. Clients considering ESOPs, family transfers, recapitalizations, redemptions, or other succession strategies may also benefit from exploring charitable opportunities.

Are there causes or organizations that helped shape your business, your employees, or your family's values?

Business succession often prompts reflection. Many owners begin thinking not only about what they have built, but also about the communities, schools, nonprofits, and organizations that contributed to their success. This conversation can help clients identify charitable priorities that might otherwise be left unexplored. It also creates an opportunity to discuss how a business transition could become a catalyst for meaningful community impact rather than simply a financial event.

Would you like your children or grandchildren to be involved in charitable decisions after the transition?

For many families, succession planning is about more than transferring wealth. It is also about passing along values. A donor-advised fund at the Community Foundation can provide a flexible way for family members to participate in charitable decisions over time. Rather than making all charitable decisions immediately after a sale, a family can establish a fund, potentially involve multiple generations in recommending grants, and create a structure that supports ongoing conversations about philanthropy and community impact.
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Are you interested in creating a charitable fund that can support multiple organizations over time?

Many business owners want to make a significant charitable commitment during a liquidity event but are not yet ready to determine exactly which organizations should receive support. A donor-advised fund can help bridge that gap. Clients can contribute assets during a high-income year, potentially receive a charitable deduction if eligible, and then recommend grants to charitable organizations over time. This flexibility allows clients to separate the timing of a charitable contribution from the timing of individual grant decisions.
A word of caution

Some clients may initially assume that a private foundation is the best vehicle for implementing their charitable goals alongside a business exit or succession plan. However, private foundations can be subject to complex rules governing self-dealing, excess business holdings, required distributions, investments, and other activities, not to mention the unfavorable tax deductibility rules for gifts of closely held stock to a private foundation as compared with a donor-advised fund. For many business owners, a donor-advised fund can provide a simpler alternative with significantly less administrative burden and, in many cases, more favorable tax treatment.
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The Community Foundation is happy to work alongside you and your clients to explore charitable planning opportunities. Please reach out anytime you encounter a pending business succession situation - or preferably a potential business succession situation!

If you keep an eye on initial public offerings, it’s been an exciting few weeks, especially if your clients are involved. As you work with clients who may hold stock that’s going public, or if your clients are considering investing in companies involved in IPOs, be sure to look at all angles of the client’s financial and estate plan that may be impacted—including charitable planning.

Indeed, recent headlines are a reminder that initial public offerings can create significant charitable planning opportunities. For example, CNBC’s article on SpaceX millionaires and wealth management, The Wall Street Journal’s “Tech’s Next IPO Wave Promises a Charitable Windfall,” and Business Insider’s coverage of newly wealthy SpaceX employees all point to the same theme: Liquidity events can quickly turn founders, executives, early employees, and investors into high-net-worth charitable clients. 

Of course, for attorneys, CPAs, and financial advisors, the key is to bring up the topic of charitable planning as early as possible—ideally before shares are sold and before clients make irrevocable tax, investment, or estate planning decisions.

You may be curious about how IPOs and charitable planning might come together for your clients and how the Community Foundation can help!

Consider three scenarios for inspiration: 

Scenario 1: Founder or executive with highly appreciated stock

A founder or executive approaching an IPO may be holding shares with very low basis and significant expected appreciation. Depending on timing, restrictions, and tax rules, contributing a portion of appreciated shares to a fund at the Community Foundation may help your client support charitable goals while potentially reducing exposure to capital gains tax. A donor-advised fund, field-of-interest fund, or designated fund, for example, can allow the client to create a long-term charitable strategy while maintaining flexibility after the IPO dust settles.

Scenario 2: Employee with a sudden wealth event

As recent SpaceX coverage illustrates, IPOs can create thousands of newly wealthy employees who may never have needed sophisticated charitable planning before. These clients may be juggling concentrated stock positions, tax liabilities, estate planning needs, and family conversations about wealth. A donor-advised fund at the Community Foundation can provide a simple, organized way to set aside charitable dollars in a high-income year and then recommend grants over time as the client becomes more intentional about giving. This strategy is called “bunching.”

Scenario 3: Investor or family seeking legacy and multigenerational community impact

Some clients who benefit from IPO activity may already have significant wealth and want to use the liquidity event to formalize a philanthropic legacy. These clients may be good candidates for multiple charitable funds, such as a donor-advised fund for flexible family grantmaking, a scholarship fund to support education, and an unrestricted or field-of-interest fund to address changing community needs over time. The Community Foundation can work alongside you and your client’s full advisory team to align tax planning, family goals, and charitable impact.

Finally, and importantly, what’s the common thread across all three scenarios? Timing. Once an IPO, sale, or lock-up expiration is underway, some planning options may be limited. Advisors who ask charitable questions and loop in the team at the Community Foundation early can help clients turn a major financial event into meaningful support for the causes they care about.

Please reach out to our team to discuss clients’ charitable opportunities related to IPOs, appreciated stock, business interests, other complex assets—and anything else related to philanthropy. The Community Foundation is here for you! It is our honor to be your first call on matters of charitable giving.