It’s October, and year-end planning is already well underway. You’ve likely begun talking with clients about tax deadlines and the important loose ends to tie up before 2027 arrives. Still, some reminders are worth repeating, especially during a busy season when clients are juggling priorities of their own.
When it comes to charitable giving, the Lenawee Community Foundation is here as a resource for you and your clients. Reminders may be especially useful this year because new charitable deduction rules took effect in 2026 and markets may have created opportunities for clients to give appreciated assets, not to mention the usual changes in families, businesses, and finances that are inevitable every year.
Here are five charitable giving topics worth keeping in the conversation as you help clients prepare for December 31.
Client 70½ or older? Ask about QCDs. Always.
This one is worth repeating. For clients age 70½ and older, a Qualified Charitable Distribution from an IRA can be an excellent way to support favorite charities. For 2026, the QCD limit is $111,000 per taxpayer. For clients who are also subject to required minimum distributions, a QCD can count toward the RMD while generally excluding the qualifying distributed amount from taxable income. Remember, under current law, QCDs cannot be made to donor-advised funds, although other types of funds at the Foundation may qualify.
Much ado about bunching.
As you work with clients who regularly support favorite charities, bunching is another strategy worth revisiting. The higher standard deduction means many clients will not itemize every year, and the new 0.5%-of-AGI floor on itemized charitable contribution deductions adds another consideration in 2026. A client who normally gives similar amounts each year might benefit from concentrating several years of charitable contributions into a single tax year and taking the standard deduction in intervening years. A donor-advised fund at the Foundation can be especially useful here because the client can make the larger contribution now and recommend grants to favorite charities over time.
Cash is not king!
Before a client writes a check to their fund at the Foundation or to other charities, it may be worth taking a closer look at what else they own. Advisors are often looking for highly appreciated stock within clients’ portfolios. Publicly traded securities held for more than one year are often particularly attractive assets to give to charity because donating the shares directly can generally allow the client to avoid recognizing the unrealized capital gains while qualifying for a charitable deduction based on fair market value, subject to applicable limitations. The Foundation can accept the stock and sell it so that the proceeds can be put to use in the client’s donor-advised or other type of fund.
What’s more, stock isn’t the only asset worth considering. Depending on a client’s circumstances, closely held business interests, real estate, and other appreciated property may offer charitable planning opportunities. These gifts require more advance planning than writing a check, which is precisely why October is a good time to begin the conversation. Our team can help determine whether a proposed asset is appropriate to accept and work alongside you and the client’s other advisors.
Non-itemizers, raise your hands!
There’s also a new deduction worth keeping in mind for clients who do not itemize. Beginning with the 2026 tax year, a client who takes the standard deduction can still deduct up to $1,000 in qualifying cash charitable contributions, or $2,000 for married couples filing jointly, subject to limitations (e.g., only cash gifts count, and gifts to donor-advised funds are excluded). For clients who assumed there was “no tax benefit” to their charitable gifts because they don’t itemize, this may be a welcome year-end planning reminder.
Think long-term.
During the last quarter of every year, much of the focus is naturally on helping clients meet the December 31 deadline for various tax planning and charitable giving strategies. Year-end conversations can also create a natural opportunity to look beyond December 31 and revisit a client’s longer-term charitable plans. Has the client already provided for a charity such as the Foundation, or a fund at the Foundation, in a will or trust? Have IRA beneficiary designations been reviewed recently to determine whether a charitable gift makes sense as part of the account’s ultimate disposition? While clients are already focused on getting plans in order, it may be an ideal time to make sure their charitable intentions are accurately reflected in their estate plans.
As you help clients put their year-end plans into action, our team is ready to work alongside you. Whether the conversation involves a QCD, appreciated assets, a donor-advised fund, or a longer-term charitable plan, we’re honored to be your first call when charitable giving becomes part of the conversation.