Research and survey results tell us that many clients’ most consequential estate and financial planning activities arise not from long-term intentions, but from sudden change. Moments like this are challenging because clients are often overwhelmed and unsure how to proceed, and even the best advice can feel like too much information delivered too soon. In these situations, be aware that charitable planning can help re-anchor clients’ decision-making in values rather than fear or urgency. For many clients, generosity is one of the few topics that still feels familiar when everything else is shifting.

Here are three examples:

Change in assets

Following a divorce settlement, a client may suddenly be holding cash, concentrated stock, or other highly appreciated assets. The client may also be juggling other priorities: adjusting lifestyle expectations, supporting adult children, and rethinking an estate plan. When the client also wants to do something charitable but isn’t sure yet what organizations to support, setting up a donor-advised fund at the Lenawee Community Foundation can be a natural fit in some cases, allowing the client to be eligible for a tax deduction when the contribution is made while taking time to decide which charities to support and when.

Loss of spouse

A client whose spouse has recently passed away may want to make a charitable gift in the spouse’s memory, but likes the idea that the gift could benefit the community for many generations and address urgent needs that arise decades from now. Setting up an unrestricted fund at the Lenawee Community Foundation allows a client to support evolving community needs over time as well as support the mission of the Lenawee Community Foundation itself.

Retirement

A 74-year-old client who just retired is feeling less “relevant” outside of the workforce, and therefore would like to do something meaningful for the community. With plenty of assets in retirement accounts, the client does not need to rely on distributions from IRAs to maintain lifestyle standards. This client could be a good candidate to establish a designated fund (to support a specific nonprofit organization) or a field-of-interest fund (to support an area of need such as education, health care, or the arts) at the Lenawee Community Foundation. Then, the client may direct Qualified Charitable Distributions from IRAs (up to $111,000 per taxpayer in 2026) to the fund, bypassing adjusted gross income and counting toward required minimum distributions.

The Lenawee Community Foundation is happy to help. Next time you are meeting with a client who is experiencing one of life’s inevitable rough patches, remember that charitable planning allows your client to take action that brings joy, reflects identity, aligns with purpose, and helps the client shift from a reactive mode to an intentional one.

The post Sudden life changes: Charitable giving can help clients get through it appeared first on Lenawee Community Foundation.

What’s the background with the IRS?

Under long-standing IRS guidance, a charitable contribution is generally considered “made” for tax purposes when the donor irrevocably parts with control of the gift. For contributions made by check and sent through the mail, the IRS has traditionally treated the date of the U.S. Postal Service postmark as the date of the gift, even if the charity receives the check later. This approach is reflected in IRS Publication 526 and generally parallels the broader “mailbox rule” under Internal Revenue Code Section 7502, which treats certain documents and payments as timely based on their postmark date rather than the date of receipt.

Okay, so if this is not an IRS issue, what happened?

In November 2025, the U.S. Postal Service (not the IRS) changed how postmarks are applied. Effective December 24, 2025, the official postmark date is now defined as the date of the first automated processing scan at a USPS processing facility, rather than the date a letter is dropped in a mailbox or handed to a clerk at a local post office. As a result, mail deposited on December 31, 2025 may not have actually received a postmark until several days later, especially around the holidays. This change took many people by surprise and created a lot of confusion, prompting the USPS to issue a “facts and myths” circular.

So, what’s this got to do with the IRS?

Because the IRS’s practices continue to rely on the postmark to establish the date of a mailed charitable gift, this change can cause a contribution a client intended to deduct for 2025 to be treated as a 2026 contribution if the postmark reflects a January processing date.

If my client got caught up in this change, is the client totally out of luck for a 2025 charitable deduction?

Not necessarily. Remember, the underlying IRS rules governing charitable contribution timing have not changed. Publication 526 still requires your clients to “substantiate”—meaning document—the date of their gift, and the IRS continues to look at objective evidence to substantiate and determine when the contribution was made. What has changed is the ability to rely entirely on an ordinary envelope postmark as proof of a year-end gift. (Advisors should understand that the statutory mailbox rule in Section 7502 is primarily directed at tax filings and payments to the IRS, but in practice the IRS uses similar concepts when evaluating the timing of charitable gifts, particularly where the postmark is the primary evidence of mailing.)

Okay, it sounds like all is not lost. What should I do to help my client?

If a client was caught up in this rule change at the end of 2025, the first step is to gather and preserve any alternative proof that establishes when the gift was actually mailed. Documentation such as a USPS Certificate of Mailing, a certified or registered mail receipt, or a manually applied postmark or postage validation imprint obtained at the retail counter can help demonstrate that the donor relinquished control of the gift before year-end, even if the automated processing postmark is later. Even where the client has such postal documentation, contemporaneous records such as copies of the check, the client’s notes, and any correspondence with the charity should also be retained in the event the deduction is questioned. In other words, you may be able to build a case to support a client’s deduction for 2025.

What should clients do for 2026 and beyond?

Advisors should counsel clients on how to avoid this issue going forward. Electronic giving methods such as online donations, ACH or wire transfers, and completed transfers of publicly traded securities provide clearer and more immediate timestamps for deduction purposes and do not depend on postal processing practices.

How can the Lenawee Community Foundation help?

Reach out to our team early in the year! Many clients find themselves rushing around at year-end to make charitable donations. The change in the postal rules is a terrific reason to remind a client that organizing charitable giving through a donor-advised fund at the Lenawee Community Foundation allows the client to make a donation for tax purposes to the donor-advised fund well before the end of the year, thereby securing any applicable charitable deduction, and then recommending grants from the donor-advised fund anytime to favorite charities. As always, we look forward to serving you and your clients!

The post Postmarks, rule changes, and remedies for clients’ 2025 charitable gifts appeared first on Lenawee Community Foundation.

Social Security COLA increases

The Social Security Administration announced a cost-of-living adjustment (COLA) increase effective January 1, 2026. This increase reflects inflation’s trajectory and affects many retirees who also engage in philanthropy.

Importance to charitable giving: Retirees are a unique group when it comes to tools and techniques related to charitable giving. Given that a high percentage of older cohorts give to charity each year, discussing your clients’ Social Security benefits is a logical juncture to also bring up charitable giving plans for 2026 and beyond.

Standard deduction increases

For tax year 2026, the standard deduction increased to $16,100 for single taxpayers, $24,150 for heads of households, and $32,200 for married couples filing jointly.

Importance to charitable giving: The standard deduction is a key factor in charitable giving strategies. If a client’s total itemized deductions—including charitable gifts—exceed the standard deduction, they are eligible to itemize. Reviewing this threshold and considering a “bunching” strategy (accelerating multiple years of giving into one tax year) can help maximize charitable support through 2026 and beyond.

Tax brackets

Though the tax rates remain at a range from 10% to 37%, the income levels that define each bracket for 2026 have shifted.

Importance to charitable giving: Examining tax brackets with clients presents a timely opportunity to discuss their charitable giving strategies. With the new limitations on itemized deductions that took effect in 2026 (specifically the 0.5% floor and the 35% cap), it’s important to help clients plan carefully so that their philanthropy remains tax-efficient.

Qualified Charitable Distributions (QCDs)

For tax year 2026, the per-taxpayer limit for Qualified Charitable Distributions (QCDs) has been increased for inflation to $111,000, up from $108,000 in 2025. And, the limit for a one-time QCD from an IRA to a split-interest vehicle has been adjusted for inflation to $55,000, up from $54,000.

Importance to charitable giving: Because clients age 70 ½ or older can direct IRA distributions to charity without including them in taxable income (a “Qualified Charitable Distribution”), these clients can reduce their AGI and, if applicable, satisfy all or part of their required minimum distributions (RMDs). A QCD to a qualified fund at the Lenawee Community Foundation (such as a designated or field-of-interest fund but not a donor-advised fund) remains one of the most tax-efficient ways to support charity.

Non-itemizer charitable deductions

Beginning with tax year 2026, a single-filer taxpayer who does not itemize deductions will be allowed to deduct up to $1,000 in cash donations to qualified charities (excluding donor-advised funds and private foundations). Non-itemizing joint filers may deduct up to $2,000.

Importance to charitable giving: Despite the relative inflexibility of the new deduction (e.g., gifts of appreciated stock don’t count and neither do gifts to donor-advised funds), nevertheless, this provision for non-itemizers could help encourage people to begin their charitable giving journey, especially in the case of young professionals. To that end, you might consider mentioning this new deduction to your high income-earner clients who have adult children. The Lenawee Community Foundation can help by offering non-donor-advised fund options to receive the $1000 or $2000 gifts as well as offer opportunities for family learning and hands-on involvement.

As 2026 gets into full swing, please reach out to the Lenawee Community Foundation team! We are honored to be your first call on all matters related to charitable giving. Thank you for the opportunity to help you serve your clients!

The post What’s New in the Numbers: A Checklist for Charitable Tax Rules in 2026 appeared first on Lenawee Community Foundation.

So what now? Should you still recommend that your clients establish and use donor-advised funds at the Lenawee Community Foundation 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 the Lenawee Community Foundation often plays a crucial role in a client’s overall philanthropy structure. Here’s why:

–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.

–Lenawee Community Foundation 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 the Lenawee Community Foundation, you can confidently recommend a donor-advised fund because you know the client will receive administrative simplicity, top-notch service, and plenty of opportunities for deep community connections and multigenerational philanthropy.

In short, donor-advised funds at the Lenawee Community Foundation support your clients’ holistic wealth and legacy planning goals. The Foundation makes 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.

The post Keep Going: Why Donor-Advised Funds are Still Essential appeared first on Lenawee Community Foundation.

Here are three things you need to know:

–Beginning with the 2026 tax year, clients who itemize will face a new 0.5% of adjusted gross income floor for charitable deductions, meaning that only the portion of their giving that exceeds that threshold will be deductible. In addition, high-income clients will see the value of their deductions capped at 35 cents on the dollar, even if they are in a higher marginal tax bracket. 

–Your clients may be aware of another new law effective in 2026 allowing taxpayers who take the standard deduction to claim a modest “above-the-line” charitable deduction—up to $1,000 for single filers and $2,000 for married couples filing jointly. While helpful, this limited deduction provides far less benefit than itemizing under current rules. 

–Because of upcoming changes, 2025 is shaping up to be an especially important year for charitable planning. Your clients who itemize their deductions may benefit from “accelerating” or “bunching” contributions into their donor-advised funds at the Foundation this year to take full advantage of the current, more favorable rules. 

Here are two bonus “must-knows” 

–The OBBBA did not change the rules for Qualified Charitable Distributions, which continue to allow individuals aged 70½ or older to give up to $108,000 in 2025 directly from an IRA to an eligible charity, bypassing taxable income and counting toward required minimum distributions (if applicable). Certain types of funds at the Lenawee Community Foundation, such as designated funds, unrestricted funds, field-of-interest funds, and scholarship funds (but not donor-advised funds), may receive QCDs.

–Because a QCD reduces adjusted gross income rather than functioning as an itemized deduction, it will remain unaffected by the OBBBA’s new 0.5% AGI floor and the 35% cap that will apply to itemized charitable deductions starting in 2026. As a result, QCDs may become even more valuable next year, offering a tax-efficient charitable giving option at a time when traditional deductions will be more limited for some of your clients.

Our team at the Lenawee Community Foundation is here to support you as you help clients navigate these shifting rules. We are happy to serve as a resource for evaluating giving strategies, structuring multi-year plans, and helping clients use tools such as donor-advised funds, designated funds, or field-of-interest funds to make the most of their 2025 contributions. Please reach out as soon as you can. We are honored to collaborate with you in serving your charitably minded clients to achieve year-end giving goals.

The team at the Lenawee Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

The post 2025 Action Required: Last Call for Current Tax Rules appeared first on Lenawee Community Foundation.

Attorneys, accountants, and financial advisors know quite well that after a client passes away, many planning strategies are set in motion and, simultaneously, emotions run high and families are adjusting to loss. This combination can make it challenging to transition relationships to the next generation. The statistics underscore just how steep this challenge can be. Indeed, some sources indicate that fewer than 20% of heirs continue working with their parents’ advisor after inheriting assets.

The answer, of course, is to build relationships with the client’s children long before the estate becomes active. Advisors can employ many thoughtful methods—inviting children to appropriate meetings, sending personal notes, or offering career guidance. Yet few topics open the door quite as meaningfully as philanthropy. For most families, inheritances represent more than financial transfers; they embody values, purpose, and the story of how the family built its resources. Conversations about charitable giving naturally lead to discussions about legacy, priorities, and shared commitments across generations.

This is where the Lenawee Community Foundation can be especially valuable. Our team helps advisors create opportunities for clients and their children to explore philanthropy together. You can encourage families to establish simple, effective giving vehicles through the Lenawee Community Foundation—such as a donor-advised fund, designated fund, or field-of-interest fund—that make charitable participation accessible to every generation. You can also connect them with our family-focused services, including research on favorite causes, curated site visits to local nonprofits, and educational conversations about community needs and charitable giving strategies. We also provide materials to help families understand tax-efficient giving, such as the advantages of contributing appreciated stock to avoid capital gains tax.

What’s more, estate planning and wealth advisors can ask us to facilitate family discussions so younger generations can understand and carry forward the causes their parents and grandparents have long supported, while also identifying new areas that reflect their own interests or values. These conversations are powerful. They deepen family identity, strengthen intergenerational ties, and help advisors stay connected to the entire family for years to come.

Any thoughtful engagement with a client’s next generation improves the chances of maintaining the relationship across transitions. But philanthropy, in particular, provides a uniquely meaningful avenue to build trust, spark conversation, and ensure continuity—keeping your clients’ families engaged with you long after wealth transfers from one generation to the next.

Please reach out anytime. We look forward to helping you keep your clients for many years to come!

The team at the Lenawee Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

The post A Key to Client Retention: Consider Charitable Planning appeared first on Lenawee Community Foundation.

Sadly, incapacity is no longer a rare edge case. Longer lifespans, higher rates of dementia, and more complex family structures are increasing the time period during which your clients’ decisions may be made by agents, trustees, or caregivers rather than clients themselves. Indeed, courts and advisors are seeing more estate and trust disputes rooted in lack of capacity and undue influence, especially when late-stage changes to an estate plan take heirs by surprise. Notably, a recent industry overview describes a surge in challenges to last-minute trust amendments, typically framed around diminished capacity or pressure from a third party.  

Against this backdrop of a looming incapacity crisis, because charitable goals are values-driven and not necessity-driven, many families default to immediate needs and may ignore a loved one’s charitable intentions if they are not clearly documented. This gap is exacerbated by the reality that charitable intent is more easily reinterpreted than most planning objectives. If a file says only “she cared about education,” for example, heirs can disagree on what that means or whether it still applies. What’s more, a significant charitable gift made late in life without documented context may look suspicious to disappointed beneficiaries, inviting capacity or undue influence claims.

The Lenawee Community Foundation can help! As you are putting together incapacity plans for clients, we are happy to provide suggestions for how to clearly document clients’ charitable intentions, including:

–Specific bequest language in wills or trusts, including gifts to clients’ donor-advised or other types of funds at the Lenawee Community Foundation;

–Incapacity-ready giving instructions, including continuing annual gifts if capacity declines and the conditions under which an agent under a durable power of attorney can pause them;

–Ideas for aligning intentions across all instruments, including trusts, wills, retirement and insurance beneficiary designations, and business succession plans; and

–A contemporaneous statement of charitable intent to be maintained with the plan files, showing consistency over time and rationale for giving.

The point here is that clarity protects your clients’ values and reduces the ambiguity that heirs often seize on in disputes. The Lenawee Community Foundation team is happy to help your clients’ generosity survive cognitive decline, family conflict, and the rising wave of capacity-based challenges. We look forward to working together!

The team at the Lenawee Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

The post Planning for Clients’ Incapacity: Why Charitable Intentions Matter appeared first on Lenawee Community Foundation.