For advisors, recent tax law changes may feel like old news. For many clients, however, the implications are only now becoming clear. As awareness grows, charitable planning conversations are becoming more important than ever.
Several changes under the One Big Beautiful Bill Act are reshaping how clients approach giving:
- A new floor on itemized charitable deductions means gifts must exceed 0.5% of adjusted gross income before generating a deduction.
- A cap on deductions for top-bracket taxpayers reduces the effective tax benefit for some charitable gifts.
- An above-the-line deduction for non-itemizers creates new opportunities, but excludes gifts to donor advised funds and noncash contributions.
These shifts add complexity—but also planning opportunities.
For some clients, bunching contributions into a donor advised fund may help maximize deductions. For others, donating appreciated stock remains one of the most tax-efficient giving strategies.
The key is helping clients understand that charitable planning is not one-size-fits-all.
As questions arise, our team at the Community Foundation is here to support your work and provide practical guidance that strengthens both your client relationships and community impact.