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.
What Now?
Should you still recommend that your clients establish and use donor advised funds at CFHZ 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 CFHZ can play a crucial role in a client’s overall philanthropy structure.
- 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.
- Our 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 us, you can confidently recommend a donor advised fund because you know the client will receive administrative simplicity, personalized service, and plenty of opportunities for deep community connections and multi-generational philanthropy.
In short, donor advised funds at CFHZ support your clients’ holistic wealth and legacy planning goals. We make 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.
We always encourage donors to first seek the advice of their legal, financial, or tax advisors when considering a gift of non-cash assets. While our team does not offer tax advice, we stay knowledgeable on charitable giving strategies. Please contact Colleen Hill, Vice President of Development & Donor Services, at chill@cfhz.org or by calling 616–994–8853 if we can help you serve your clients.
