Serving Charitable Clients: An Entry Point to Philanthropy
As tax laws and market dynamics continue to shift, it is important for attorneys, CPAs, and financial advisors to be aware of new requirements – and opportunities – for clients with philanthropic goals. Whilethe high federal estate tax exemption and new restrictions on itemizing charitable deductions are creating unique needs for those whose assets exceed $30 million, the new charitable deduction for non-itemizers offers an entry point and incentive for your clients who are just starting out in their careers or still building wealth.
Policy changes are encouraging charity across broader income levels, bringing new donors into the fold even if their initial gifts are modest. The availability of a charitable deduction for non-itemizers creates a new opportunity to introduce philanthropy as part of their financial lives sooner than in the past.
As a trusted advisor, recognizing these opportunities can help you tailor your conversations and add value in more meaningful ways.
Identify causes and issues that are meaningful to clients and their families.
Build charitable habits into financial and estate planning. Even relatively small gifts can serve as the foundation for lifelong philanthropic engagement. Note: the new deduction for non-itemizers applies only to cash gifts and if not available for gifts to donor advised funds.
For clients age 70 ½ and over and who own IRAs, Qualified Charitable Distributions are a powerful and tax-advantaged tool for clients to transfer up to $111,000 per taxpayer (2026 limit) to support favorite causes. Right now, clients can use QCDs to fund field-of-interest, unrestricted funds, and certain other types of funds at a community foundation, but not donor advised funds.
And finally, connect clients with the Topeka Community Foundation as a trusted resource for charitable giving, in partnership with you as their professional advisor. Our team is ready to work with you to ensure your clients achieve their philanthropic goals alongside their regular financial and estate planning.