 When the curtain rises on The Wizard of Oz this fall, audiences will see a beloved classic brought to life. Behind the scenes, however, another story is unfolding: one of mentorship, friendship, and community.
For the second year, the Empire Theatre Company is bringing performers ranging in age from seven to seventy together on one stage. While intergenerational casts are uncommon, Managing Artistic Director Kathy Coudle-King believes they're one of the company's greatest strengths. "It doesn't happen very often that people of different ages do anything together unless they're in a family," she said. "I really like the idea of blending the two together." That vision has created an environment where experienced performers naturally share their knowledge with younger cast members, while younger actors bring fresh energy and enthusiasm to every rehearsal. Last year, those relationships developed on their own. This year, the company is intentionally encouraging them by introducing an informal buddy system for The Wizard of Oz. Cast members will be paired across generations to practice lines, get to know one another, and learn from each other's experiences. "We want to put things in place to help facilitate those relationships," Kathy said. One memorable example came during last year's production of Charlie and the Chocolate Factory. Mark Diers, who portrayed Grandpa Joe, shared the stage with young actors playing the other grandparents. During rehearsals, the children occasionally helped him remember lines, while he shared his own experience with them. Today, those young performers still recognize him around town and stop to say hello. "It's pretty special," Kathy said. "You create something together over several weeks, and those relationships continue afterward." Those connections are exactly what the Empire Theatre Company hopes to foster. Beyond producing quality theater, the organization wants audiences and performers to see the value of learning from one another across generations. Support from the Community Foundation's Iseminger Fund for the Arts Grant Program has helped make that possible. The funding allows the company to produce larger musicals with expansive casts while providing a stipend to every performer and crew member. "We pay everyone," Kathy explained. "It's our way of saying, 'We value your time, your talent, and, in many cases, your training." That support has made productions like Charlie and the Chocolate Factory and this year's The Wizard of Oz possible, creating opportunities for dozens of local performers to participate in meaningful artistic experiences. This season also introduces the company's "From Page to Stage" theme, celebrating stories that began as books. Through a partnership with the Grand Forks Public Library, community members can read each featured book before seeing it performed on stage, creating a unique connection between literature and live theater. For Kathy, however, the heart of theater has always been about bringing people together. "It's community," she said. "People from all different parts of the community come together to experience the same story. Our neighbors are right up on stage telling it." Whether it's a child discovering a love for theater, an experienced performer passing along years of wisdom, or an audience member seeing themselves represented on stage, the Empire Theatre Company is creating more than productions. They're creating connections that strengthen the community long after the final curtain falls. Thanks to support from partners like the Community Foundation, those connections continue to grow, one rehearsal, one performance, and one generation at a time.  Welcome to the Great Wealth Transfer! This much-cited era, happening right now, is reportedly the time when trillions of dollars will pass from one generation to the next over the coming decades in various forms, ranging from cash and stock to real estate and business interests.
Understandably, most conversations and commentary about this transfer focus on the assets themselves. Who will inherit the family business? What will happen to the investment portfolio? How should the estate plan be structured? Naturally, those are important questions! But many families are beginning to ask something deeper: "What values do we want to pass along, too?" A recent Kiplinger article exploring the Great Wealth Transfer makes the point that the strongest family legacies are built not simply by transferring assets, but by intentionally passing along values of generosity through shared charitable experiences and conversations. It encourages families to involve younger generations in philanthropy early, making giving a collaborative, multigenerational experience rather than a one-time financial transaction. For many people, philanthropy is one of those values. If you’re among them, here’s food for thought: —A charitable legacy isn't simply about the gifts that are made after you're gone. It's also about helping your children and grandchildren understand why giving has been important throughout your life. In many ways, the conversations, traditions, and shared decisions surrounding philanthropy can become just as meaningful as the financial inheritance itself. —Now is a great time to begin mapping out your legacy if you’ve not done so already. For starters, August is widely recognized as Make-A-Will Month, in large part because the downtime of late summer offers a perfect window to address open estate planning issues. —According to the latest Giving USA report, charitable bequests totaled more than $62 billion in 2025, increasing nearly 20% over the previous year. Bequests were the fastest-growing source of charitable giving, underscoring how important estate gifts have become to nonprofit organizations and the communities they serve. —A charitable bequest can be surprisingly simple. You might leave a specific dollar amount or a percentage of your estate to your donor-advised fund, or designate another type of charitable fund at the Community Foundation, to continue supporting the organizations and community priorities that matter most to you. —For example, by naming your children or other loved ones as successor advisors of your donor-advised fund at the Community Foundation, you're inviting them to continue the family's tradition of generosity by recommending grants to the organizations and causes they believe will make a difference. This opportunity is itself a meaningful inheritance! —For individuals and couples with especially large estates, charitable planning also may reduce the federal estate tax ultimately borne by the estate, helping preserve more of the remaining assets for heirs. This consideration applies to relatively few families because the federal estate tax exemption is $15 million per individual in 2026, but when it does apply, it really matters because gifts and bequests to qualified charities generally are deductible in determining the taxable estate. Your attorney, CPA, and financial advisor can help determine whether estate tax planning is relevant to your particular circumstances. —Even when estate taxes are not a concern, a charitable bequest can still become one of the most meaningful gifts you make. You may, of course, provide for family members while also supporting the causes and organizations that have mattered throughout your life. Estate plans are designed to transfer wealth. A charitable legacy has the power to transfer something even more lasting. The Community Foundation would be honored to work with you and your estate planning advisors to arrange charitable bequests, establish a donor-advised or other charitable fund, and build a legacy your family can continue long into the future.  Life’s big milestones cover a lot of ground! Some are deeply personal, such as welcoming a grandchild, retiring after a long career, or celebrating a significant birthday. Other milestones are financial: selling a business, receiving an inheritance, exercising stock options, selling a valuable piece of real estate, or realizing a financial gain following an initial public offering involving stock you’ve owned for years.
Whether financial or personal, major milestone moments often bring a sense of accomplishment. They can also bring something else: an opportunity to pause and reflect—and be smart about the next big move. For many people, that's when the questions start changing. At some point along the way, instead of asking themselves, "What's my next big thing?" they shift to "What matters most?" and "What kind of impact do I want to leave behind?" That's one reason so many charitable conversations begin after a significant financial event, which is why significant financial events often lead to high-profile philanthropy announcements, as recently occurred in connection with the sale of the Seattle Seahawks. Many people in this situation find they have the time and flexibility to think more intentionally about the causes, organizations, and communities that have shaped their lives—especially now that they have the financial resources to act on their intentions. Some want to express gratitude for opportunities they've received. Others hope to create opportunities for future generations or honor family members. Still others simply want to make sure the success they've enjoyed continues benefiting others for years to come. As you look ahead in your life and anticipate big milestones, consider taking steps early so that you’re prepared to implement a philanthropy plan. For example, here are a few things you can do even years before a significant liquidity event: —Consider establishing a donor-advised fund at the Community Foundation so you can get familiar with the mechanics and the resources available at the Community Foundation. You’ll be able to set aside charitable dollars while taking the time to thoughtfully consider which organizations you would like to support over the months and years ahead, especially following a financial transaction. —In addition to your donor-advised fund, you might also want to establish one or more designated funds to provide lasting support for the specific organizations you care about. These funds can provide support during your lifetime or receive an estate gift under your will or trust. —Some people also establish a field-of-interest fund at the Community Foundation as part of their charitable giving “portfolio” to address particular community needs, as well as unrestricted funds that allow the community foundation to respond to the area's greatest opportunities for generations to come. Remember, in the case of private business interests, from a capital gains perspective, you may be far better off establishing charitable arrangements well before a transaction is underway. Please consult your tax advisors and the community foundation team as you think about an exit plan for your closely held business. Of course, if you’ve recently experienced a liquidity event and haven’t yet established a charitable plan, it is not too late! Whether you’ve already experienced a significant financial event—or expect one in the future—we'd love to talk. The community foundation can help you explore charitable options that reflect your values, support the causes you care about, and create a legacy that extends far beyond a single moment of success.  When “back to school” enters your vocabulary, you know the rest of the year will go by in a flash! That’s why it’s important to check in on your charitable goals for 2026 before fall gets into full swing. Otherwise, you may find yourself scrambling to synchronize tax planning, financial planning, and gifts to favorite nonprofits.
In particular, a technique called “bunching” is important to consider as you get a jump on your year-end charitable giving plans. Even just a few years ago, not many people had heard of “bunching.” That’s because the standard deduction (which itself has an interesting history) under the Internal Revenue Code’s income tax rules was much lower than it is now. Many donors easily met the criteria to itemize deductions—including their charitable contributions—on their income tax returns. That changed after the Tax Cuts and Jobs Act of 2017 significantly increased the standard deduction starting in 2018. Further changes to the charitable deduction rules under 2025’s One Big Beautiful Bill Act increased the complexity of charitable deduction thresholds because the new law, effective for 2026, imposes a 0.5% of adjusted gross income (AGI) floor for itemized charitable deductions and, for taxpayers in the highest tax bracket, a 35% cap on the tax benefit of those deductions. All of this means that thoughtful charitable planning is more important than ever. What you need to know is that "bunching" charitable gifts may be useful to you, and it’s something you ought to discuss with your tax and financial advisors as soon as you can. The essence of bunching is that, rather than making similar-sized charitable donations every year, you would combine two or more years of charitable gifts up front into a single tax year. The reason this is useful is because by concentrating gifts into one year, you may be able to accumulate enough deductions to make itemizing more beneficial than claiming the standard deduction and achieve a greater tax benefit than you would by making smaller annual gifts and taking the standard deduction. A donor-advised fund at the Community Foundation makes bunching especially attractive. For example, you can contribute several years' worth of charitable gifts to your donor-advised fund this year, generally be eligible to claim an income tax deduction for the current year, subject to applicable limitations, and then recommend grants to your favorite nonprofits over several future years. This allows your favorite organizations to continue receiving steady support while simultaneously maximizing your own tax benefits. Remember, too, that your donor-advised fund at the Community Foundation accepts appreciated securities, which may provide additional tax advantages in the right circumstances. That’s because you may be able to avoid capital gains tax on the highly appreciated stock you contribute to your donor-advised fund. The takeaway here is that now is the time to begin conversations with your tax and financial advisors about bunching and about your charitable plans in general. Please loop in the Community Foundation team! We are honored to serve as a sounding board as you carry out your charitable wishes. The community foundation is your home for charitable giving, and we always welcome a conversation!  Naturally, your organization understands the importance of planned giving. But, if you are like many organizations, figuring out a way to track it and measure success leaves you scratching your head.
That's understandable. Unlike an annual campaign, planned giving is built on relationships that often develop over many years. A donor may first express interest today but not finalize an estate gift until years later. That long timeline can make it difficult to know whether your efforts are paying off. The good news is that you don't have to wait decades to measure success. Instead of focusing only on completed bequests, begin tracking the activities that lead to future legacy gifts—which will also generate plenty of annual giving along the way! Here are a few best practices to consider. Document “meaningful conversations,” not just commitments and gifts received One of the best indicators of a healthy planned giving program is the number of meaningful conversations your team is having with donors about legacy giving. Ask yourselves, “Did this conversation make it more likely that this donor will include our organization in their estate plan?” Every discussion represents an opportunity to better understand a donor's goals, while also planting the seeds for a future gift and securing lifetime gifts. Celebrate documented intentions When a donor informs your organization that they have included you in their estate plan—or signs a letter of intent—celebrate that milestone. Tracking these commitments helps you understand how your legacy program is growing long before gifts are ultimately realized. Focus on stewardship activities Activity drives results! And the work doesn't end when a donor makes a legacy commitment. You can generate ongoing meaningful conversations through in-person meetings (even if just 10 minutes!), phone calls, invitations to special events, and even super warm email exchanges that move the relationship forward. Check your marketing materials Successful planned giving programs are supported throughout the organization and across the team. Review your website each year to ensure legacy giving information is easy to find. Include planned giving stories in newsletters and annual reports. Add brief legacy giving messages to event materials, email signatures, and social media throughout the year. Small, consistent reminders help normalize conversations about charitable bequests. Set activity goals you can achieve—and also challenge you You don't need dozens of metrics to get started. Even setting goals for one or two types of metrics—most importantly, meaningful conversations—can provide valuable insight into your progress from year to year. Again, the activity will drive results! Over time, multiple conversations with a donor, even if brief, stand a good chance of paying off in the long run. Imagine what could happen if everyone on your team held meaningful conversations with a wide range of donors throughout the year—and appropriately introduced legacy giving during those conversations. Keep it simple! We cannot stress this enough! If you are spending so much time tracking and reporting that it is eating into precious time available for proactive meaningful conversations with donors, something is wrong. It is not a badge of honor to show your board a rocket-scientist-level tracking plan for stewardship, planned giving, and legacy giving, or any type of giving, for that matter. Measure what matters, and what matters are activities that build relationships. The bottom line is that what gets measured gets managed. By establishing a few simple tracking systems today, your organization can build accountability, celebrate progress, and create a stronger planned giving program that will benefit your mission for generations to come.  If you are like many nonprofit organizations, your fundraising strategies—especially those focused on planned giving—are likely oriented to Baby Boomers and Generation X. And that makes sense, considering that these generations currently control the largest share of charitable wealth and account for most major gifts, making them the most productive audiences for near-term fundraising efforts.
Against this backdrop, though, keep in mind that younger generations are becoming increasingly important for long-term growth. Here’s why: As Millennials accumulate wealth and Gen Z advances through its early working years, these younger donors are increasingly embracing strategic philanthropy, with many prioritizing purpose-driven giving, recurring donations, donor-advised funds, and charitable organizations that demonstrate transparency, measurable impact, and authentic engagement. Generation Z—generally defined as people born between 1997 and 2012—is the first true generation of digital natives. They tend to value authenticity, social impact, transparency, and mobile-first communication and, importantly, they expect nonprofit organizations to demonstrate measurable results rather than simply make broad mission claims. So, given the unique nature of this generation, how should you address planned giving with these donors and potential donors? Or should you at all? Yes, you should! Here are factors to keep in mind as you build a planned giving strategy to engage younger generations. Activate Millennials to give now and later According to the Bloomerang 2026 Giving Signals Report, Millennials have become one of the most active and strategically important donor segments. Three out of four Millennials say they plan to increase their charitable giving this year, 80% expect to support at least one new nonprofit, and 42% have already used a donor-advised fund or another tax-advantaged giving vehicle. In other words, younger donors aren't simply "donors of the future." They're giving now. This means it’s a good idea to double down on annual giving messages to Millennials while also incorporating legacy and planned giving messages. Focus on the people Just because younger generations are “on social media” doesn’t mean they’ll be drawn into your mission because you push a flashy social media campaign or redesign your gala. The foundation of strong fundraising—both lifetime and legacy giving—is still about building authentic relationships that can grow over decades. Go light on the “resume” Younger donors want to know exactly what difference their gift will make. Instead of leading with your organization's longevity or annual budget, explain how a contribution changes lives. Concrete examples consistently outperform broad mission statements when it comes to motivating younger donors. Invite participation—not only donations Gen Z and Millennials want to feel connected to a cause, not simply asked to fund it. Volunteer opportunities, advocacy campaigns, behind-the-scenes experiences, and opportunities to interact with beneficiaries or program staff can help younger supporters build a lasting connection with your mission. Show them where the money goes Transparency matters. Younger donors expect organizations to communicate outcomes, report impact, and explain how gifts are being used. Regular updates, photos, stories, and measurable results help build confidence and trust. Make it easy! Your donation process should be mobile-friendly, simple, and free of unnecessary obstacles. Complicated forms, confusing navigation, or unexpected fees create friction that can discourage younger donors before they complete a gift. Think beyond annual giving As Millennials accumulate wealth and Gen Z begins entering its peak earning years, many are already thinking strategically about philanthropy. Donor-advised funds, recurring giving, appreciated assets, and long-term charitable planning are becoming part of how younger generations approach generosity—not just how older donors do. Planting the seed of a future legacy gift doesn't require asking a 30-year-old to rewrite a will. It simply means introducing the idea that your organization hopes to be part of their philanthropic journey for decades to come. Engage the whole family Younger generations want to participate in family philanthropy rather than simply inherit it. Indeed, many expect to direct substantial resources toward charitable causes and want to be actively involved in those decisions. Here’s the bottom line: Organizations that start building relationships with younger generations now will pave the way for both annual giving and planned giving. As always, please reach out to the Community Foundation anytime! We are happy to serve as a sounding board for engaging younger generations, whether your organization has established an endowment or reserve fund at the community foundation, or whether you’d simply like to learn more about how the Community Foundation can support your capacity to receive complex and planned gifts. We look forward to a conversation!  August is widely recognized as Make-A-Will Month, making it an ideal time for nonprofit organizations to encourage donors to think not only about how they give today, but also about the legacy they hope to leave tomorrow.
For many organizations, planned giving can feel intimidating. Staff members often worry that discussing estate gifts requires technical legal knowledge or that only the wealthiest donors would be interested. In reality, neither is true. Most charitable bequests are surprisingly straightforward, and many of the strongest planned giving programs begin with nothing more than a timely reminder that supporters can include a favorite nonprofit in their will or trust. And the timing couldn't be better! The much-discussed Great Wealth Transfer is already underway, with trillions of dollars expected to pass from one generation to the next over the coming decades. Unfortunately, though, this phenomenon isn’t going to be an automatic ATM machine for your fundraising efforts. Indeed, a recent Harris Poll highlighted by The NonProfit Times suggests that while trillions of dollars are expected to transfer between generations, relatively few older Americans currently view philanthropy as a primary purpose for their wealth—underscoring the importance of nonprofits engaging donors in legacy giving conversations before wealth changes hands. Much of the public conversation about the Great Wealth Transfer focuses on who will inherit businesses, investment portfolios, and real estate. Still, many families are asking a different question: "What values do we want to pass along as well?" That's where nonprofit organizations have an important opportunity. Rather than talking exclusively about tax benefits or estate planning techniques, consider inviting donors to think about the values they hope to leave behind. A charitable bequest is about much more than transferring assets. It is an opportunity to tell future generations, "This cause mattered to me, and I hope it continues to matter to our family." That message often resonates far more deeply than discussions about financial planning alone. What’s more, the latest Giving USA report underscores why these conversations matter. Charitable bequests reached more than $62 billion in 2025, increasing nearly 20% in current dollars over the previous year and representing the fastest-growing source of giving. For nonprofits, that trend is an encouraging reminder that legacy gifts continue to play an increasingly important role in sustaining missions for generations to come. So how can your organization make the most of Make-A-Will Month? A great place to start is by making legacy giving a little more visible, such as: —Consider adding a simple page to your website explaining that supporters can remember your organization through a will or trust, or by naming the organization as a beneficiary of a retirement account, life insurance policy, or other financial account. Focus also on the lasting difference these gifts can make. If you already have a page on your website, this is a good time to review the content to be sure it is concise, as well as practical and inspiring. —Share stories alongside statistics. When you highlight a donor who established a legacy gift, don't focus primarily on the size of the future contribution. Tell the story behind the decision. What inspired the donor? Why was your mission important to them? These personal stories help other supporters imagine their own legacy. —Give donors permission to have the conversation. Many people simply don't realize that nonprofits welcome estate gifts of every size. A sentence in your newsletter, annual report, website, or donor communications may be all it takes: "If our mission has been meaningful to you, we'd be honored if you would consider including our organization in your estate plans." Sometimes the invitation itself is the most important step. —Remember that planned giving is about relationships. The best legacy gifts rarely result from a single solicitation. Instead, they grow naturally from years of trust, stewardship, and shared commitment to a mission. Donors who have volunteered, served on boards, made annual gifts, or supported special campaigns are often excellent candidates for conversations about the future because they already believe deeply in your work. —Reach out to the Community Foundation for support with complex gifts. When a donor expresses interest in making a legacy gift involving a complex asset, such as an interest in a privately held business, or is considering a complex structure such as a charitable remainder trust, please reach out. We are happy to help you work through the nuances of these types of gifts. In many cases, it may make sense for the donor to establish a fund at the Community Foundation to receive the complex gifts, and the fund in turn supports your organization. The bottom line is that Make-A-Will Month isn't simply about encouraging people to sign legal documents. It's about helping donors think intentionally about the legacy they hope to leave to ensure that your organization’s mission stays strong for generations to come.  The Community Foundation team appreciates that so many attorneys, CPAs, and financial advisors recommend to clients age 70 ½ and older that they take advantage of Qualified Charitable Distributions (QCDs) from traditional IRAs. Your client can direct a QCD to a designated fund, field-of-interest fund, scholarship fund, or unrestricted fund at the community foundation, or even directly to support the community foundation’s overall mission and work.
Because QCDs are so useful, we’ve got our eyes on pending legislation that might expand the ways your clients can use them. Specifically, Congress continues to consider two bipartisan charitable giving bills: the Charity Parity Act, which would permit QCDs directly from employer-sponsored retirement plans, such as 401(k)s, in addition to traditional IRAs, and the IRA Charitable Rollover Facilitation and Enhancement Act, which would extend QCD eligibility to donor-advised funds. Neither proposal has advanced beyond committee, but both are still active and of course could be very useful to expand charitable giving options if enacted. We will keep you posted!  Worth a read: Moving from charitable transactions to charitable strategy
At the Community Foundation, our team keeps an eye out for helpful sources and reading material to help you more easily stay up-to-date on trends and techniques for advising your charitable clients. Four recent articles make a common point: the most effective charitable planning rarely happens in response to a single tax event. Instead, it grows out of ongoing conversations about a client's values, family, financial goals, and legacy. How to Turn Wealthy Clients' Charitable Giving Into a Cohesive Plan –Kiplinger This article encourages advisors to move beyond treating charitable gifts as one-off transactions and instead help clients develop a coordinated philanthropic strategy across tax planning, estate planning, wealth transfer, and family dynamics. When Clients Ask About Their Tax Bill, the Answer Might Be Philanthropy –Advisor Perspectives The focus of this article is that major tax events—such as business sales, retirement plan distributions, or highly appreciated assets—often create ideal opportunities to discuss charitable giving. Even though the transactional elements might spark a conversation, substantive charitable planning goes far beyond a single transaction and is most effective when it becomes part of a broader financial planning conversation. Purpose-Driven Wealth Starts with Asking the Right "Why" –InvestmentNews This article outlines why technical expertise is important, but meaningful planning begins by understanding what clients hope to accomplish with their wealth. That’s why advisors should add deeper questions about values, purpose, and legacy, which naturally leads to conversations about intentional charitable planning and stronger long-term client relationships. The High-Net-Worth Want Philanthropy Guidance –Financial Advisor Magazine The article reports that high-net-worth clients increasingly expect their financial advisors to provide philanthropic guidance as part of comprehensive wealth planning. In other words, this creates a big opportunity for advisors who are proactively talking about charitable giving with their clients. If you skim these articles you will see immediately that a pattern is emerging! Clients don't simply want to save taxes—they want their wealth to reflect what matters most to them. The team at the community foundation is here as a sounding board to help you begin charitable planning conversations early. Please reach out anytime!  For many attorneys, CPAs, and financial advisors, the last weeks of summer mark the beginning of year-end planning season. As clients return from vacations and turn their attention to tax and financial planning, it's an ideal time to revisit charitable giving strategies that could be important to help clients achieve their 2026 planning objectives.A popular strategy that deserves special attention in year-end planning is "bunching" charitable contributions. The bunching concept became widely discussed when the Tax Cuts and Jobs Act of 2017 substantially increased the standard deduction for calculating income tax. According to important historical data, this change caused many taxpayers who previously itemized deductions to begin claiming the standard deduction instead because their annual charitable gifts and other deductible expenses were no longer sufficient to exceed the standard deduction threshold.
Since the beginning of 2026, charitable planning has become even more nuanced. The One Big Beautiful Bill Act added a new limitation under Internal Revenue Code Section 170 requiring that itemized charitable deductions must generally exceed 0.5% of adjusted gross income before a deduction is available. In addition, Section 68 now effectively limits the tax benefit of itemized deductions for taxpayers in the highest marginal income tax bracket to 35%. These two new provisions are sometimes called the “floor” and the “cap.” Although in many cases charitable giving remains highly tax-efficient, these changes make proactive planning increasingly important. So, what is “bunching”? And why is it so useful under current tax law? Here’s how it works: —Rather than making charitable gifts in roughly equal amounts each year, a client may benefit from consolidating two or more years of planned charitable contributions up front into a single tax year. —By concentrating, or “bunching,” donations into one year, the client may be better positioned to itemize deductions in that year while claiming the standard deduction in subsequent years, potentially producing greater cumulative tax savings over time. For many of your clients, a donor-advised fund at the community foundation serves as an effective vehicle for implementing a bunching strategy. That’s because a client can make a single, larger contribution to the donor-advised fund, generally claim the charitable deduction in the year of the contribution under Internal Revenue Code Section 170(a), and then recommend grants to favorite charities now and in future years. In short, the timing of the income tax deduction is separated from the timing of charitable distributions, allowing the client’s favorite nonprofits to continue receiving consistent annual support. As year-end approaches, many clients will naturally ask whether they should “bunch,” or accelerate, charitable gifts before December 31. Advisors who raise the bunching conversation now—and coordinate early with the Community Foundation team—can help clients evaluate whether this strategy aligns with both their philanthropic objectives and their broader financial plans and then implement the strategy without rushing through it. Bunching is not the only technique to be aware of well before year-end! Here are two additional important reminders for your client conversations: —Remember that charitable planning opportunities are typically even more attractive when appreciated securities are involved. Under Internal Revenue Code Section 170(e)(1)(A), a client who contributes long-term appreciated publicly traded securities to a public charity, including a donor-advised or other type of fund at the community foundation, generally may deduct the property's fair market value (subject to the applicable adjusted gross income limitations) while avoiding recognition of the built-in capital gain that otherwise would result from a sale. This is usually a much better tax outcome than giving cash. —Note that Qualified Charitable Distributions allow IRA owners age 70 ½ or older to give directly to charity tax-free—up to the 2026 annual limit of $111,000—even before required minimum distributions begin, potentially lowering adjusted gross income and reducing taxes on Social Security benefits and Medicare premiums. For a subset of your clients, this is important in light of the charitable deduction limitations under the One Big Beautiful Bill Act. The Community Foundation is honored to work alongside you and other advisors all year long to help structure charitable gifts in a way that advances your clients' philanthropic goals while making the planning process as seamless as possible. Reach out anytime to get a jump on year-end planning!  As an attorney, CPA, or financial advisor, you’re well aware that your clients are typically better off from a tax perspective if they donate to charity by giving appreciated stock held for more than one year instead of writing a check. That’s because the client’s charitable deduction is calculated based on the stock’s fair market value, and the charity (unlike your client) can sell the stock without triggering capital gains tax. Indeed, many of your clients regularly give appreciated stock to their donor-advised funds at the Community Foundation.
So what happens when one of these clients starts asking questions about what’s on their tax return? For instance: "Wait a minute. I distinctly remember that my stock was worth $81.95 per share when the market closed on the day I transferred 100 shares to the Community Foundation to add to my donor-advised fund. But my tax return is showing a deduction amount less than $8,195. Is that a mistake?" It's a great question, and of course you know the answer! When a client contributes publicly traded securities to a fund at the Community Foundation—or directly to another public charity—the amount of the charitable deduction is indeed based on the fair market value of the asset at the time of the gift under Internal Revenue Code Section 170 and Treasury Regulation § 1.170A-1(c). For publicly traded securities, however, "fair market value" is not ordinarily the closing price. Instead, the IRS valuation rule generally uses the average between the highest and lowest quoted selling prices on the date of the contribution. This methodology appears in Treasury Regulation § 20.2031-2(b)(1), outlining the IRS’s longstanding valuation rules. Here's a simple example. Suppose a client transfers shares to a donor-advised fund at the Community Foundation on August 20. On that date:
Many clients understandably assume their deduction will be based on the $81.95 closing price. Under the applicable valuation rules, however, the value generally used is the average of the high and low prices: ($82.40 + $79.60) ÷ 2 = $81.00 per share The difference may be relatively small in many cases, but for larger gifts—or during periods of market volatility—it can become meaningful. And again, yes, you know this! But many clients do not. That’s why it’s a good idea to remind a client about this rule when they’re making gifts of appreciated stock. It is also important to remember that determining the valuation date itself may involve additional analysis. The relevant date is generally the date the gift is considered complete for federal tax purposes, which may differ depending on how the securities are transferred and when control passes to the charitable organization. Because of these nuances, it's wise to coordinate closely with the community foundation whenever timing is critical, such as at year end. Fortunately, the Community Foundation works with gifts of appreciated securities every day and can help facilitate smooth transfers. Especially as the fall planning season approaches, clients often focus on maximizing charitable deductions while avoiding capital gains tax on appreciated investments. Being prepared to explain why the deduction is based on the average of the day's high and low—not simply the closing price—can be a helpful component of client conversations. Please reach out to the Community Foundation team anytime, and especially when a client is getting ready to transfer stock. We will keep an eye out for it and make sure the processing goes smoothly. Thank you for the opportunity to work with you to serve your clients! |
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