Gillian Howell
Gillian Howell
CHARITABLE PLANNING
• Retirement accounts and qualified charitable distributions. Your clients can still make qualified charitable distributions from their IRAs in 2026 and beyond. They don’ t have to itemize to do this, which makes QCDs an especially attractive option under the new rules for clients over 70½ who want to reduce taxable income while supporting causes they care about.
• Planned giving vehicles. Your clients will continue to see income and estate planning benefits from charitable remainder trusts, lead trusts, and other planned giving strategies. Such vehicles may become even more relevant as clients look to offset reduced marginal benefits on deductions in higher tax brackets under the new law.
2. Estate Planning And Bequests
The new tax law has raised the exemptions for lifetime gifts and estate taxes to $ 15 million per individual( indexed for inflation) beginning in 2026, which means your clients may be rethinking how charitable giving fits into their long-term plans. The end of the year is an ideal time to revisit estate strategies and ensure that their philanthropic goals and their giving remain aligned. Here are some of the strategies and tools they can use toward that effort:
• Lifetime and testamentary giving. Clients can continue to use donor-advised funds or private foundations during their lifetimes and designate these as beneficiaries in their wills or trusts. This ensures estate planning continuity— that their current giving strategy also supports the long-term legacy they want to leave behind.
• The use of charitable remainder and lead trusts. These structures still provide income for donors or heirs, with the assets left in the trust( after the term ends) going to charity. They are increasingly attractive tools for clients concerned about estate taxes after 2026.
• Bequests of retirement assets. One of the most tax-efficient ways people can give is by naming a charity as the beneficiary of IRA or 401( k) assets. This strategy ensures the funds are not subject to estate and income taxes, which preserves the full value of assets for philanthropic impact.
• The use of“ philanthropy tech.” Estate administration can be complex, so you can encourage clients to adopt philanthropy technology platforms. These types of tools can help clients simplify grant making and reporting while also helping them with governance and succession planning when it comes to charitable giving activities for heirs.
3. Year-Round Charitable Planning
This is also a good time to help clients change strategies and move from one that involves last-minute gifts to one that uses a more strategic, year-round approach. Doing so strengthens their impact and integrates giving with their broader financial picture:
• Focused giving. You can encourage your clients to start with one or two priority areas, deepening their knowledge and comfort level before expanding.
A key benefit of charitable giving for most of your clients— aside from helping others— is its helpful impact on taxes.
• Choosing the right vehicles. Think about what vehicle— or combination of vehicles— is best for your client: Donor-advised funds offer flexibility and simplicity; private foundations provide more control and give founders the ability to run direct charitable programs; and charitable trusts integrate giving with income or estate planning. You can help your clients weigh the options that are best for their priorities.
• Complex asset donations. When clients hold appreciated securities, real estate or closely held stock, you can help them understand that contributing these to charitable vehicles can unlock their value while reducing taxes.
• Strategic grant-making. Your clients can plan for 2026 by scheduling grant cycles, considering multiyear commitments, and exploring impact tools such as missionrelated investments( investments made by foundations for charitable purposes) or program-related investments( like a lowinterest loan or loan guarantee to a charity) alongside traditional grants.
• Visualization and education. You can use simple illustrations to show your clients the income, tax, and legacy impact of different strategies, things that will help them feel confident about their decisions.
4. Family Engagement And Legacy Planning
One of the most enduring values of philanthropy is how it unites families by helping them pass values from one generation to the next and create a shared legacy. Families can come together by engaging in activities such as these:
• Direct charitable activities. Private foundations help families go beyond grant-making by sponsoring scholarships, volunteering and running charitable programs— all of which are meaningful, hands-on experiences that engage all ages.
• Junior boards and family committees. Foundations, donor-advised funds, and charitable trusts can all be structured to involve children and grandchildren when the family is deciding which causes to support. Such roles also help younger family members understand governance, evaluate nonprofits, and develop a shared charitable mission with their elder family members.
By weaving philanthropy into family life, clients can strengthen bonds and ensure their legacy of generosity extends well beyond their lifetime.
While year’ s end is typically a time for charitable giving conversations, it will help you and your clients if you treat philanthropy as an evergreen topic that can be discussed year-round. This approach provides far greater value and enduring impact. And by integrating giving strategies into your clients’ tax and estate planning, investment management and family governance, you position yourself not just as a financial advisor but as a trusted partner in your clients’ broader legacy.
GILLIAN HOWELL is National Philanthropy Executive at Foundation Source, the leader in philanthropic software and services for donors, nonprofits, advisors and financial institutions.
20 | FINANCIAL ADVISOR MAGAZINE | NOVEMBER 2025 WWW. FA-MAG. COM