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.

​Joe K. Neel, Jr. believed that music changes young lives, and through the Community Foundation of Grand Forks, East Grand Forks & Region, his legacy is showing up in classrooms, rehearsal halls, and concert stages across the region. 

Recently, the Community Foundation awarded $54,000 through the Neel Family Fund Grant Program to four organizations supporting music education initiatives that will provide meaningful learning, performance, and artistic enrichment opportunities for hundreds of youth across Grand Forks County. 

“Joe understood something that research has long confirmed - that music education shapes not just musicians, but confident, creative, engaged young people." said Becca Baumbach, President & CEO of the Community Foundation. "These grants are a reflection of that belief, and we're proud to help carry it forward."

The 2026 Neel Family Fund Grant recipients include:

• Manvel Public Schools – Band, Choir, and Elementary Concept Project: Strengthening music education for preschool through 8th-grade students through concerts, musical theatre, and expanded access to instruments and performance resources.
• Grand Cities Children’s Choir – More Than Music: Supporting the purchase of a Yamaha Clavinova piano, chromatic hand chimes, and part-time instrumental instruction to expand hands-on music learning for nearly 250 singers.
• Northern Valley Youth Orchestras – Supporting Symphonic Readiness: Expanding chamber music instruction, mentoring, and preparatory ensemble opportunities for young musicians.
• Greater Grand Forks Symphony Orchestra – Young Audiences Concert: Partnering with Carnegie Hall’s Link Up program to provide 4th and 5th grade students with classroom music instruction and the opportunity to perform alongside GGFSO musicians.

These projects reflect the continued impact of the Neel Family Fund Grant Program in expanding access to music education and helping young people across the region build creativity, confidence, and a lifelong appreciation for the arts. 

The Neel Family Fund was established by Joe K. Neel at the Community Foundation of Grand Forks, East Grand Forks & Region to support and strengthen music education opportunities for children and youth ages 18 and younger throughout Grand Forks County. A lifelong lover of music, Neel recognized the important role music plays in youth development and education. 
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Through annual grant awards, the fund helps school music programs, youth bands, choirs and orchestras, summer music opportunities, the purchase of instruments and music, and educational experiences with guest conductors and clinicians. The fund is intended to enhance and expand music education resources rather than replace existing support, ensuring young people throughout the region have access to meaningful musical experiences for generations to come.

For years, experts have talked about the coming “Great Wealth Transfer”—the massive movement of wealth expected to pass from Baby Boomers to younger generations over the next two decades. 
But are you seeing it at your organization? You probably are, even if the phenomenon is not manifesting as an immediate wave of large cash gifts! Here are the nuanced trends to watch for evidence that the transfer is underway:

• More donors are engaging in estate and legacy planning conversations that include charitable gifts.
• Larger gifts involving appreciated assets, donor-advised funds, and planned giving vehicles are becoming more common.
• Families are increasingly involving children and grandchildren in philanthropic decisions earlier than in previous generations.
  
  

Accordingly, in your donor development efforts, now is the time to focus on:

• Planned giving, including estate gifts and beneficiary designations
• Gifts from donor-advised funds
• Gifts of complex, noncash assets 
• Multigenerational and family philanthropy engagement 
  
  

Here are three examples of how the Community Foundation can support your organization as wealth changes hands:

• Our team can help your organization build long-term financial stability by housing and administering your endowment or reserve fund. The Community Foundation’s ongoing professional investment management and back office services can help you create permanent charitable resources designed to support your mission for generations to come.
• Many donors involved in the Great Wealth Transfer hold significant wealth in noncash assets such as appreciated stock, real estate, closely held business interests, retirement assets, cryptocurrency, collectibles, and other complex property. The Community Foundation can help you facilitate these gifts by accepting, liquidating, and administering assets that your organization may not be equipped to handle directly.
• The team at the Community Foundation is happy to offer insights to help strengthen your organization’s planned giving efforts. Please reach out to learn about upcoming technical assistance, education, and capacity-building opportunities. 
  
  

Finally, keep in mind that much of the Great Wealth Transfer is still in its relatively early stages. Baby Boomers still control a great deal of U.S. wealth, meaning a significant portion of charitable transfer activity may accelerate over the next 10–20 years as estates settle and intergenerational planning matures. We look forward to working together in the coming decades! 

Nonprofit organizations have long known that the IRS Form 990 is more than just a tax filing. It is a public document that funders, donors, watchdog organizations, journalists, and community partners often review to better understand an organization’s governance, financial stewardship, and mission impact. Now, proposed changes signaled by the U.S. Department of the Treasury and the IRS could make the Form 990 even more important.

What does this mean for your organization and other nonprofits? At this stage, no immediate action is required, and nonprofit organizations are not yet facing new filing obligations. Proposed regulations are expected later this year and will likely include an opportunity for public comment before changes are finalized. 

Here’s what’s important to know:

Not a total surprise
As alarming as this news may seem, it’s not entirely “new” news. In many ways, the anticipated changes reinforce trends nonprofits have already been experiencing for years, including growing expectations around transparency, documentation, governance, and financial accountability. 

There’s a silver lining
Increased transparency is not all bad! Your donors and grantmakers genuinely want to understand not only where funds come from, but also how decisions are made and how dollars ultimately support mission-related work. Increased understanding among your key stakeholders is an excellent opportunity to foster deeper engagement.

Effects would be varied
Some organizations will be more affected than others. If your nonprofit receives public funding or participates in fiscal sponsorship arrangements, the proposed revisions could mean you’ll be subject to more detailed disclosures and recordkeeping requirements. 

Focus on specific functions
Certain areas of nonprofit reporting may be particularly important. Treasury officials have specifically indicated interest in clearer reporting around who controls funds, how grants are administered, and how sponsored projects operate within larger charitable structures.
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Importantly, none of this means that you should panic. Many organizations already have strong internal controls and reporting systems in place. Instead, this is an opportunity to take a few key steps right now:

• Review internal financial reporting and documentation procedures.
• Confirm that board minutes and governance policies are current and organized.
• Evaluate how grants, contracts, and restricted funds are tracked internally.
• Work closely with accountants, auditors, and legal counsel to stay informed as proposed rules develop.

Above all, remember that the Form 990 is a public-facing storytelling tool, not simply a compliance form. While Form 990 reporting can sometimes feel technical or burdensome, it also gives nonprofits an opportunity to communicate impact, stewardship, and organizational integrity. Strong governance and transparent reporting can strengthen credibility with funders and the broader community alike.
If you’d like to discuss how the Form 990 creates engagement and communications opportunities, please reach out! The team at the Community Foundation is always happy to serve as a resource and sounding board for our nonprofit partners. Thank you for all you do to make our community stronger! ​

You might initially think of a donor-advised fund as a simple charitable savings account: contribute assets, immediately receive a tax deduction, if eligible, and recommend grants to your favorite 501(c)(3) nonprofits over time. While that is certainly true, many people are surprised to learn just how flexible a donor-advised fund at the Community Foundation can be.

For many donors, the creative use of donor-advised funds at the Community Foundation opens the door to a larger charitable impact than they originally thought possible. Here’s how:

Your fund grows and changes alongside your life
Many people do not realize that a donor-advised fund at the Community Foundation can help simplify giving during major life transitions. If you are preparing for retirement, selling a business, receiving an inheritance, or navigating a particularly high-income year, your donor-advised fund can provide flexibility in both timing for income tax planning and philanthropic grantmaking decisions. What’s more, during many of these transitions, it may make sense to look beyond cash gifts and explore using appreciated stock, closely held business interests, real estate, and other noncash assets to fund your charitable goals in tax-efficient ways.

Your fund can help you engage the next generation
Some donors are using donor-advised funds at the Community Foundation to involve children and grandchildren in family philanthropy. Because grants can be recommended over many years to 501(c)(3) organizations locally and across the country, donor-advised funds create opportunities for ongoing conversations about values, generosity, and community impact across generations.

The Community Foundation supports your areas of focus
Working with your local Community Foundation adds the important elements of flexibility, personalization, and expertise. Unlike national commercial donor-advised fund providers, Community Foundations combine the administrative advantages of a donor-advised fund with deep local knowledge and personalized philanthropic support. The Community Foundation can help identify community needs, connect you with nonprofit organizations of all shapes and sizes, and explore creative strategies tailored to your own charitable interests. The community foundation is here to help you support your favorite causes, whatever they may be.

​The takeaway? Your donor-advised fund at the Community Foundation is much more than just a giving account—it is a flexible tool for building a thoughtful, lasting charitable legacy that supports your favorite causes and the community as a whole. Please reach out to our team to expand your impact and enjoy your philanthropy even more! 

At the Community Foundation, we are honored to work with many individuals, families, and businesses who support the causes that matter most to them and help make our entire community a better place to live. In many cases, trusted professional advisors, including attorneys, CPAs, and financial advisors, are helping donors make important decisions about taxes, investments, estate planning, and family wealth. 

All of this is wonderful! There’s one more step, however, that is often overlooked: Connecting the dots. If you are a donor or fund holder at the Community Foundation, or plan to establish a fund in the near future, please consider introducing your advisors to the community foundation team. A simple introduction can make a tremendous difference in ultimately achieving your charitable goals.

Here’s why:

• Attorneys, CPAs, and wealth managers are experts in many aspects of financial and estate planning, and their work is essential in helping you develop and implement strategies through legal documentation, tax filings, and other technical guidance. Not all advisors, however, are experts in charitable giving. 
• The Community Foundation, by comparison, brings to the table specialized knowledge about charitable giving strategies, local nonprofit needs, philanthropic tools that may be best suited for your particular situation, and the types of assets you might consider giving to achieve your goals.
• The Community Foundation certainly does not offer legal, tax, or financial advice, but we absolutely stay current on legal, tax, and charitable developments. In turn, we can keep you and your advisors informed about which trends to watch. 
• When you establish a fund at the Community Foundation as part of your charitable plan, our team will handle the paperwork and administration to create and manage that fund. This is often a relief to your advisors, not to mention a relief to you!

Importantly, collaborative conversations among donors, advisors, and the community foundation are not only for ultra-high-net-worth families. Even relatively straightforward charitable plans can benefit from collaboration between your advisors and the Community Foundation. In many cases, donors discover giving opportunities they might not otherwise have considered. What’s more, many advisors appreciate having philanthropic specialists available to help explore charitable strategies that benefit both the donor and the causes they care about.

So what can you do? We invite and encourage you to take the lead! A simple email introducing each of your advisors to the community foundation team is often all that is required to open the door to better communication and stronger planning. The Community Foundation is always happy to join a conversation with you and your advisors, but a baseline introduction is the most critical part.  

When professionals work together, the result is often a more coordinated and impactful charitable plan. By connecting your advisors with the Community Foundation, you help create a team that can support both your financial goals and your desire to make a lasting difference. We look forward to hearing from you—and meeting your advisors! Thank you for all you do to make our community a better place.​

​Youth musicians rehearsing side-by-side with mentors. Inclusive choir members finding community through song. Young performers stepping onto the stage for the first time. These are just a few of the experiences that will be made possible through 2026 Iseminger Endowment for the Arts Grant Program at the Community Foundation of Grand Forks, East Grand Forks & Region.

This year, the Community Foundation awarded $112,172 across nine regional organizations supporting projects in music, theater, dance, and arts education that will serve thousands of residents across the region.

“The arts help define the character of a community,” said Becca Baumbach, President and CEO of the Community Foundation. “These organizations are creating opportunities for people of all ages to participate in and experience the arts in meaningful ways, whether that’s on stage, in classrooms, in galleries, or out in the community. We’re grateful to the Iseminger family for creating an endowment that makes these opportunities possible year after year.”

The Iseminger Endowment for the Arts was established to strengthen and expand access to arts and cultural experiences throughout Grand Forks, East Grand Forks, and the surrounding region. The annual grant program supports projects that demonstrate artistic quality, community engagement, and educational impact, with an emphasis on musical performance.

Several funded projects place a strong importance on youth engagement and arts education. Northern Valley Youth Orchestras’ sixteenth season will provide symphonic training, mentoring, coaching, and concert opportunities for more than 150 young musicians, while also expanding outreach performances and student mentoring opportunities. Grand Cities Children’s Choir will launch a new percussion education initiative alongside two free public concerts during the 2026–2027 season.

Other projects focus on creating inclusive and accessible arts experiences. LISTEN, Inc.’s “Voice of Inclusion” program will partner with the University of North Dakota to build an inclusive community choir for individuals with and without disabilities, using music to foster connection and belonging. The Empire Arts Center’s production of The Wizard of Oz will bring together seasoned adult actors and youth performers ages 10 and older in an intergenerational theatrical experience designed to create both entertainment and learning opportunities.

Several organizations are also expanding opportunities for audiences to engage directly with professional artists. The North Dakota Museum of Art’s chamber music season will feature internationally recognized musicians participating in concerts, school visits, workshops, and community presentations throughout multi-day residencies. Grand Forks Chorales will pair a major collaborative concert with free educational masterclasses for students and community members.

Additional grants will support Frost Fire Summer Theatre’s revitalized summer season in the Pembina Gorge, upgraded production equipment for East Grand Forks Central Middle School musicals, and North Dakota Ballet Company’s Holiday Extravaganza production featuring performers ranging from preschool-age dancers to adults.

2026 Iseminger Endowment for the Arts Grant recipients include:

• East Grand Forks Public Schools - New Sound Equipment at Central Middle School: Providing upgraded sound and production equipment to enhance student musical and theatrical performances at Central Middle School.
• Empire Arts Center - There’s No Place Like Home: An Intergenerational Musical in the Heart of Downtown Grand Forks: Bringing community members of multiple generations together through a full-scale production of The Wizard of Oz.
• Frost Fire Summer Theatre - Frost Fire Summer Theatre 2026 Season: Supporting a summer theatre season in the Pembina Gorge that combines professional-quality productions with expanded access and community participation.
• Grand Cities Children’s Choir - Your Voice is Your Superpower: Expanding youth music education opportunities through a new percussion program and free public performances during the 2026-2027 season.
• Grand Forks Chorales - Requiem Canticorum: An Interdisciplinary Choral and Saxophone Collaboration: A collaborative performance pairing choral music with guest saxophone artists, accompanied by educational programming and masterclasses.
• LISTEN, Inc. - Voice of Inclusion: An inclusive community choir program developed in partnership with the University of North Dakota that brings together individuals with and without disabilities through music.
• North Dakota Ballet Company - Celebrating Artistry, Community, and Connections: Supporting the company’s Holiday Extravaganza production featuring dancers ranging from preschool-age students to adults.
• North Dakota Museum of Art - 2026–2027 Chamber Music Season: Presenting a series of chamber music residencies featuring internationally recognized musicians alongside concerts, workshops, and school outreach activities.
• Northern Valley Youth Orchestras - Season 16: Providing symphonic training, rehearsals, concerts, mentoring, and outreach opportunities for young musicians from across the region.

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“These projects reflect the depth and diversity of the arts in our region,” Baumbach said. “They create opportunities for learning, creativity, collaboration, and connection that strengthen our communities and enrich our quality of life.”
 
More information about the Iseminger Endowment for the Arts is available at gofoundation.org/iseminger-grants.

The Community Foundation of Grand Forks, East Grand Forks & Region is thrilled to announce that Dolly Parton’s Imagination Library will officially be available to children across Grand Forks County beginning July 1, marking a major milestone made possible by an outpouring of community support.
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As the Imagination Library’s local affiliate, the Community Foundation has helped lead a grassroots effort to raise $90,000 to launch the program. Once enrolled, children from birth to age five will receive a free, high-quality, age-appropriate book in the mail each month – regardless of family income or background.
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What began as a conversation has become a reality thanks to the collective commitment of Grand Forks County. Since July 2025, the Foundation and a small committee of volunteers have raised nearly $50,000 in donations and grants from more than two dozen local organizations and businesses, including foundational gifts from Scheels, Minnkota Power Cooperative, and the University of North Dakota. An additional $40,000 has been contributed by more than 55 individuals and private foundations who believe deeply in the power of early childhood literacy, led by a generous gift from Grand Forks’ Jim and Corinne Satrom.
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“The past year has shown us something truly special. Families across Grand Forks County are eager for opportunities like this, and the people of our county are equally eager to respond,” said Imagination Library Coordinator Kaylee Cusack, a volunteer with the Community Foundation. “This is, in every sense, the community’s Imagination Library. It’s been built by neighbors, businesses, and organizations all stepping forward to say our children matter.”

Reaching the $90,000 fundraising milestone allows the Community Foundation to begin enrolling children in the program this summer. However, organizers emphasize that sustaining the Imagination Library for years to come will require continued partnership and investment from across the county.
For just $35 of support, a single child can receive 12 books a year, helping to build a home library and foster a lifelong love of reading. With a goal of serving more than 3,000 children at peak enrollment, the program aims to raise approximately $100,000 annually.

“This is one of the most practical and powerful investments we can make in our region’s future,” said Community Foundation President and CEO Becca Baumbach. “When children enter kindergarten ready to learn, it changes the trajectory not only for that child, but for entire classrooms and school systems.”
Cusack added that the long-term benefits extend beyond the classroom. “Readers become leaders. The children who grow up with books in their homes are more likely to become the innovators, entrepreneurs, and public servants who will shape Grand Forks County in the years ahead,” she said. “This program is about planting those seeds now.”

Mark your calendar – online enrollment for Grand Forks County families will open July 1 at imaginationlibrary.com.  A community celebration is planned for Aug. 11 at the Grand Forks Public Library, with additional details to be announced. If you would like to learn more or donate, please visit gofoundation.org/dpil.

About Dolly Parton’s Imagination Library
Launched in 1995, Dolly Parton’s Imagination Library is the world’s leading early childhood book-gifting program. As the flagship initiative of The Dollywood Foundation, a 501(c)(3) nonprofit organization, the Imagination Library has gifted more than 300 million free books to children across the United States, Canada, the United Kingdom, Australia, and the Republic of Ireland.

Inspired by her own father’s struggles with literacy, Dolly created the Imagination Library to spark a lifelong love of reading and to inspire all children to Dream More, Learn More, Care More, and Be More. The program’s effectiveness has been extensively studied, with research consistently demonstrating positive impacts on early childhood development, kindergarten readiness, and family reading habits. For more information, please visit imaginationlibrary.com.

The Community Foundation is pleased to welcome three new members to our Board of Directors in 2026. Each brings unique experience, passion, and a deep commitment to strengthening our community, and we are grateful for their willingness to serve.

We are excited to welcome Dylan Berg, Sue Bjornstad, and Sandy Kovar to the board.

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

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As we welcome these new board members, we also extend our deepest gratitude to Mary Loyland, who is stepping off the Board of Directors after a cumulative 18 years of service.

Mary’s steady leadership, generosity, and deep commitment to our mission have shaped the Foundation in lasting ways. Throughout her time on the board, she guided thoughtful decisions, championed philanthropy, and strengthened the work that supports our community every day. We are profoundly thankful for her dedication and the legacy she leaves behind.
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Please join us in thanking Mary for her remarkable service and in welcoming Dylan, Sue, and Sandy as they begin their work with the Community Foundation.

​If you know the basics of Qualified Charitable Distributions (QCDs) but have a hard time envisioning exactly what to say and do when they come up in a client conversation, you are not alone! Whether you are an attorney, CPA, or financial advisor, at some point you will find yourself in the middle of a QCD conversation. Here’s a case study to help you be prepared.

Margaret, a 74-year-old widow and longtime client of your practice, scheduled a meeting early in the year to discuss her charitable giving plans. In the email Margaret sent to set up the meeting, she mentioned that she was now taking required minimum distributions from her IRA and her taxable income was higher than she expected or needed.

As you reviewed Margaret’s file prior to the meeting, you were reminded that Margaret had established a donor-advised fund at the Community Foundation several years ago. You recall from prior conversations that Margaret not only has enjoyed using the donor-advised fund to organize her charitable giving to dozens of favorite charities, but she’s also appreciated the many opportunities to tap into the Community Foundation’s events and educational opportunities.

Margaret arrived at your office, and after catching up on each other’s lives lately, Margaret said, “I’ve read about this thing called a Qualified Charitable Distribution. If I’m going to give to charity anyway, I want to understand whether doing a QCD in 2026 makes sense, especially if I want the gift to go through the Community Foundation where I already do all of my giving.”

You nod and explain that a QCD does indeed allow individuals like her who are age 70 ½ or older to transfer funds directly from an IRA to a qualified charity without including that amount in taxable income. You mention that this can be especially powerful after age 73, when required minimum distributions begin, because the QCD can satisfy all or part of the RMD while keeping adjusted gross income lower. “This can help address Medicare premiums, taxation of Social Security, and overall tax efficiency,” you continue. “With the annual QCD limit increasing through inflation adjustments to $111,000 in 2026, it’s a timely strategy to consider.”

Margaret was glad to hear all of this. Then she asked, “I already have a donor-advised fund at the Community Foundation. Can I simply direct my QCD straight into that fund?” You are prepared for this question! It is a common point of confusion. “That’s a great question, and you’re not alone in asking it,” you reply. “Under current IRS rules, unfortunately, QCDs can’t be made to donor-advised funds, even if they’re housed at a community foundation.”

Seeing her puzzled expression, you continue with a broader explanation. “QCDs are limited to certain types of charitable recipients,” you say. “They can go directly to public charities that are ‘operating’ nonprofits, and in limited cases to certain split-interest arrangements like a charitable gift annuity or a charitable remainder trust, subject to specific rules. Donor-advised funds are excluded, evidently because the IRS does not want the money to flow into account where the taxpayer retains advisory privileges. Donor-advised funds are of course entirely dedicated to charity, so the rule does not make a lot of sense. Yet here we are.”

Margaret frowned slightly. “That feels frustrating,” she said. “I love the donor-advised fund because it gives me flexibility and lets me support multiple causes over time.” You acknowledged her concern. “I understand. The good news, though,” you say, “is that the Community Foundation offers other types of funds that do qualify for QCDs and can still accomplish many of the same goals.”

You go on to explain that instead of directing the QCD to her donor-advised fund, Margaret could direct the QCD to a designated fund at the Community Foundation that supports specific charities she already knows she wants to help, or to a field-of-interest fund focused on causes she cares about deeply, such as education or the arts, or to an unrestricted fund to support the community as a whole. “Those types of funds are fully managed by the Community Foundation, without your advisory role after setup,” you say, “which makes them eligible recipients of a QCD while still aligning with your charitable intentions.”

Margaret paused, considering the options. “I don’t want to make the wrong choice,” she said. “I also want to be sure the fund is set up properly and really reflects what I care about.” You agree that is exactly the point where collaboration matters most. “This is where I’d recommend looping in the Community Foundation,” you say. “They can help us think through which type of fund fits best, provide a fund agreement document, and enable me to fulfill my professional duty to ensure that the structure complies with QCD rules.”

You go on to suggest a joint meeting with a community foundation representative. “The Community Foundation knows the nuances of the fund options and the local charitable landscape,” you explain. “That’s a great match for the legal and tax obligations on my side of the transaction. Together we can help ensure that your QCD in 2026 is clean, compliant, and aligned with your values.” Margaret smiled, clearly relieved. “That makes sense,” she said. “I don’t want this to be just about taxes. I want it to be meaningful.”

By the end of the meeting, you and Margaret have agreed on next steps: you said you would review Margaret’s IRA custodian requirements for executing a QCD, and the Community Foundation will set up a fund to receive the distribution. The plan will allow Margaret to use her required minimum distribution to support the community she loves, reduce her taxable income, and create a charitable structure she feels confident about.

As Margaret leaves your office, you can tell that she feels reassured that she didn’t have to navigate the rules alone. The conversation had clarified not only why a QCD in 2026 made sense for her financially, but also why working collaboratively with you and the Community Foundation was essential. Together, you and the Community Foundation can turn a confusing tax rule into a thoughtful charitable strategy that supports both Margaret’s personal financial goals and the broader community she intends to impact.

If Margaret’s situation sounds familiar, or if you anticipate any type of charitable giving conversation with a client, the Community Foundation is here for you! We are always happy to collaborate as you explore solutions to achieve your clients’ charitable goals. In nearly every situation, the Community Foundation can help. At the very least, we will point you in the right direction. Thank you for the opportunity to work together!
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Pro Tip
As you talk with clients over the coming weeks, keep in mind that tax laws are always subject to change–and sometimes for the better. Case in point related to Margaret’s situation? A small, bipartisan tax law change has been proposed that would allow Qualified Charitable Distributions into donor-advised funds. Fingers crossed!

​For many CPAs, estate planning attorneys, and financial advisors, the end of 2025 brought a whirlwind of charitable planning activity among high-earner clients. That’s because many taxpayers wanted to maximize the tax benefits of their charitable donations before the 0.5% “floor” and 35% “cap” on charitable deductions kicked in on January 1, 2026 under new tax laws. Donor-advised funds in particular played a big role in many late-2025 planning strategies because affected taxpayers could transfer assets to a donor-advised fund in 2025, achieve optimal tax results, and then thoughtfully recommend grants to favorite charities from the donor-advised fund in 2026 and beyond.

So what now? Should you still recommend that your clients establish and use donor-advised funds at the Community Foundation to organize their charitable giving?

Absolutely yes! Donor-advised funds remain a highly relevant and strategic tool for your clients. The IRS’s new deductibility limits may reduce the marginal tax benefit of giving for some of your clients, but nothing has changed about the donor-advised fund’s broader planning advantages for all of your charitable clients. Here’s why:

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

In short, donor-advised funds at the Community Foundation support your clients’ holistic wealth and legacy planning goals. The Community Foundation makes it easy for you, as the advisor, to integrate a donor-advised fund into a client’s estate plan, use a donor-advised fund to smooth charitable giving over time as a client’s income ebbs and flows, and lean on the donor-advised fund as a platform for strategic philanthropy that can evolve alongside a client’s unique life and financial circumstances.

​Well before 2025 made way for 2026, you were no doubt already tracking the various IRS thresholds that are subject to adjustment, as well as the new tax laws’ impact on planning techniques. But have you thought about how each of these thresholds might relate to your clients’ charitable giving? Here are pointers to keep handy as you inform your clients about changes in 2026 and help them tee up their charitable giving plans for the coming year.

Social Security COLA increases
The Social Security Administration announced a cost-of-living adjustment (COLA) increase effective January 1, 2026. This increase reflects inflation’s trajectory and affects many retirees who also engage in philanthropy.

Importance to charitable giving: Retirees are a unique group when it comes to tools and techniques related to charitable giving. Given that a high percentage of older cohorts give to charity each year, discussing your clients’ Social Security benefits is a logical juncture to also bring up charitable giving plans for 2026 and beyond.

Standard deduction increases
For tax year 2026, the standard deduction increased to $16,100 for single taxpayers, $24,150 for heads of households, and $32,200 for married couples filing jointly.

Importance to charitable giving: The standard deduction is a key factor in charitable giving strategies. If a client’s total itemized deductions - including charitable gifts - exceed the standard deduction, they are eligible to itemize. Reviewing this threshold and considering a “bunching” strategy (accelerating multiple years of giving into one tax year) can help maximize charitable support through 2026 and beyond.

Tax brackets
Though the tax rates remain at a range from 10% to 37%, the income levels that define each bracket for 2026 have shifted.

Importance to charitable giving: Examining tax brackets with clients presents a timely opportunity to discuss their charitable giving strategies. With the new limitations on itemized deductions that took effect in 2026 (specifically the 0.5% floor and the 35% cap), it’s important to help clients plan carefully so that their philanthropy remains tax-efficient.

Qualified Charitable Distributions (QCDs)
For tax year 2026, the per-taxpayer limit for Qualified Charitable Distributions (QCDs) has been increased for inflation to $111,000, up from $108,000 in 2025. And, the limit for a one-time QCD from an IRA to a split-interest vehicle has been adjusted for inflation to $55,000, up from $54,000.

Importance to charitable giving: Because clients age 70 ½ or older can direct IRA distributions to charity without including them in taxable income (a “Qualified Charitable Distribution”), these clients can reduce their AGI and, if applicable, satisfy all or part of their required minimum distributions (RMDs). A QCD to a qualified fund at the Community Foundation (such as a designated or field-of-interest fund but not a donor-advised fund) remains one of the most tax-efficient ways to support charity.

Non-itemizer charitable deductions
Beginning with tax year 2026, a single-filer taxpayer who does not itemize deductions will be allowed to deduct up to $1,000 in cash donations to qualified charities (excluding donor-advised funds and private foundations). Non-itemizing joint filers may deduct up to $2,000.

Importance to charitable giving: Despite the relative inflexibility of the new deduction (e.g., gifts of appreciated stock don’t count and neither do gifts to donor-advised funds), nevertheless, this provision for non-itemizers could help encourage people to begin their charitable giving journey, especially in the case of young professionals. To that end, you might consider mentioning this new deduction to your high income-earner clients who have adult children. The Community Foundation can help by offering non-donor-advised fund options to receive the $1000 or $2000 gifts as well as offer opportunities for family learning and hands-on involvement.
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As 2026 gets into full swing, please reach out to the Community Foundation team! We are honored to be your first call on all matters related to charitable giving. Thank you for the opportunity to help you serve your clients!

Many people approach a new year with a genuine desire to be more intentional about their charitable giving. They know they want to make a difference, align their generosity with their values, and perhaps even involve their families - but they are often unsure where to begin. The combination of busy lives, changing tax laws, and an ever-growing number of worthy causes can make getting started feel overwhelming. The good news is that taking a few simple, thoughtful actions at the beginning of the year can bring clarity and confidence to your giving.

Here are three first steps to inspire you:

Consider reviewing your 2025 charitable contributions with the team at the Community Foundation.
Looking back at last year’s giving can be surprisingly helpful, especially when guided by professionals who understand both philanthropy and the local community. The Community Foundation can help you see the real-world impact of your gifts, identify patterns in your giving, and highlight opportunities you may not have considered. This review also creates a natural bridge to planning your 2026 support, whether that means refining your focus, adjusting gift amounts, or exploring new charitable vehicles. Just as important, it allows you to begin thinking strategically about future years, helping ensure that your generosity grows in a way that is both meaningful and sustainable.

Talk with your tax advisors as soon as possible about whether and how the new tax laws might impact your situation.
Charitable giving is closely connected to tax and estate planning, and early conversations can help you make informed decisions before the year gets too far along. This is also an ideal time to revisit your estate plan and beneficiary designations. Many donors choose to include a gift to their donor-advised or other type of fund at the Community Foundation in their wills, trusts, or beneficiary designations on retirement accounts or life insurance policies, creating a lasting legacy that reflects their values. Coordinating these updates with your tax advisor and the Community Foundation can ensure your charitable intentions are clearly documented, tax-efficient, and aligned with your overall financial and estate planning goals.

Set goals for your charitable involvement in 2026.
Rather than giving reactively, goal-setting allows you to be proactive and intentional about how you engage with the causes you care about. The Community Foundation can help you explore new and emerging charities, learn more about pressing needs in the community, and connect with organizations that align with your interests. Together, you and our team can create a plan for timing gifts throughout the year, whether through recurring contributions, single large gifts early in the year to help a favorite charity leap ahead, or strategic gifts of highly appreciated or complex assets. This approach not only makes giving more manageable but also helps ensure your generosity has the greatest possible impact.
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As you look ahead, remember that you do not have to navigate charitable planning on your own. The Community Foundation is here to serve as a trusted partner - whether you are just getting started, refining an existing plan, or thinking about the legacy you want to leave for future generations. We invite you to reach out anytime to ask questions, explore ideas, or take the next step in your giving journey. We are honored to help you turn your charitable intentions into meaningful, lasting impact.

​At the Community Foundation, we are honored to serve as your home for charitable giving. Whether you support a wide range of charitable organizations in our community and across the country, focus your giving on a few favorite local causes, collaborate with the Community Foundation to invest in our region’s greatest needs, or all of the above, we are here for you!
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A new year presents an excellent opportunity to check in on your charitable giving priorities. This is the case every year, but it is especially important in 2026 not only because of the crucial priorities to improve our community’s quality of life, but also because of a few new tax laws that may impact charitable giving strategies for some people.

Here are the changes that you’ll want to be aware of, and, most importantly, share with your tax advisors as soon as possible to determine how these changes might impact your situation. Forward this article to your tax advisors, or print it and take it to your next meeting.  

New threshold to itemize charitable deductions
One of the most significant shifts affects individual taxpayers who itemize their income tax deductions. Beginning this tax year, charitable contributions will only be deductible to the extent that they exceed 0.5% of a taxpayer’s adjusted gross income. In practical terms, this means that a portion of charitable giving will no longer generate a tax benefit. For example, a taxpayer with an adjusted gross income of $200,000 will see no deduction for the first $1,000 of charitable contributions made in a year. Only donations above that amount will be eligible for deduction, subject to existing percentage-of-income limits. This new rule functions much like a deductible in an insurance policy, raising the effective threshold for receiving a tax benefit and reducing the immediate incentive for smaller annual gifts among itemizers.

Limitation on itemized charitable deductions for high-income taxpayers
High-income taxpayers will face an additional limitation through a new cap on the value of itemized charitable deductions. Even if a donor is in the highest federal income tax bracket, the tax benefit of a charitable deduction will be limited to 35 percent of the contribution. As a result, taxpayers in the 37 percent bracket will no longer be able to offset their income at their full marginal rate when making charitable gifts.

Good news for the 60% cap
Another important change provides greater certainty for donors who make substantial cash contributions. The long-standing rule allowing cash gifts to qualified public charities to be deducted up to 60 percent of adjusted gross income has been made permanent. After satisfying the new 0.5% AGI floor, donors may continue to deduct cash contributions up to this level, while non-cash gifts or contributions to certain types of organizations remain subject to lower percentage limits. This permanence preserves a relatively generous framework for major philanthropy even as other rules become more restrictive.

New incentive for non-itemizers
The new rules introduce an incentive for taxpayers who do not itemize deductions. Beginning with the 2026 tax year, individuals who claim the standard deduction will be allowed to take a limited charitable deduction above the line, meaning it reduces income before adjusted gross income is calculated. Single filers may deduct up to $1,000, while married couples filing jointly may deduct up to $2,000, provided the contributions are made in cash. This deduction is available in addition to the standard deduction and represents a meaningful expansion of tax benefits for charitable giving among non-itemizers, many of whom have received no tax benefit for donations in recent years. Note, however, that gifts to donor-advised funds are not eligible for this deduction, and neither are noncash gifts. This is unfortunate because both gifts to donor-advised funds and gifts of highly appreciated assets are useful tools that incentivize charitable giving.

QCDs may be even more useful
Retirees and older taxpayers will also see an important adjustment through an increase in the Qualified Charitable Distribution limit. Beginning in 2026, the annual amount that can be transferred directly from an individual retirement account to a qualified charity will increase, allowing taxpayers age 70 ½ and older to direct more funds to charitable causes without including those distributions in taxable income. Because Qualified Charitable Distributions can also count toward required minimum distributions, this higher limit enhances a tax-efficient giving strategy that is unaffected by itemized deduction limits, adjusted gross income floors, or caps on deduction value.
 
Limitations on corporate charitable deductions
Corporate donors are not exempt from the new framework. Starting in 2026, corporations may deduct charitable contributions only to the extent that those contributions exceed 1 percent of taxable income. Contributions below that threshold will not generate a current-year deduction, although amounts that exceed applicable limits may be carried forward to future tax years. This new floor is likely to influence corporate giving strategies, particularly for businesses that make consistent but relatively modest charitable contributions. The existing 10% cap on corporate charitable deductions remains in place.

​Again, we strongly encourage you to forward this information to your tax advisors. Please loop us into the conversation so that we can work alongside your attorney, financial advisor, and CPA to ensure that you’re set up to meet your charitable goals for 2026 through strategies that also align with your tax, financial, and estate planning objectives. Whether you cc us on an email, ask your advisor to get in touch with us directly, or pull everyone together on a quick call or Zoom, we are here for you and look forward to the conversation!