What’s going on here?

Business succession planning is becoming increasingly important as a growing share of American wealth is tied to privately held companies. According to the National Center for the Middle Market at The Ohio State University, approximately 200,000 U.S. companies generate annual revenues between $10 million and $1 billion. At the same time, a recent Wall Street Journal article highlighted the growing ranks of wealthy Americans whose fortunes were built through private business ownership and equity growth. For many of these business owners, a succession event may represent the largest liquidity event of their lifetime. For attorneys, CPAs, and financial advisors, these trends point to a growing need for thoughtful planning around business transitions, wealth transfer, and charitable legacy strategies.

What is most important for advisors to know?

The single most important takeaway is that charitable planning should be part of the succession conversation as early as possible. Whether a client is preparing to sell a closely held business, transfer ownership to family members, explore an employee stock ownership plan (ESOP), or simply begin thinking about life after the company, charitable planning deserves a seat at the table early in the process.

Too often, philanthropy enters the conversation only after a transaction is well underway or already complete. By then, some of the most effective planning windows may be closed. By asking the right questions early, you can help your clients support meaningful causes, potentially reduce taxes, involve family members in giving, and create a lasting charitable legacy.

What questions should I ask my clients?

Here are four “must ask” questions and why they are important, plus a word of caution.

1. Have you thought about including charitable giving in your business succession plan?

Many business owners have most of their wealth tied up in their companies. When a sale or ownership transition occurs, the resulting tax consequences can be significant. In some situations, contributing a portion of closely held business interests to charity before a transaction may allow a client to support charitable goals while potentially reducing capital gains tax exposure.

Again, timing is key. Once letters of intent are signed or a transaction becomes binding, certain charitable planning opportunities may no longer be available. That’s why advisors should raise charitable planning discussions long before the deal reaches the finish line.

Remember that charitable planning is not limited to third-party sales. Clients considering ESOPs, family transfers, recapitalizations, redemptions, or other succession strategies may also benefit from exploring charitable opportunities.

2. Are there causes or organizations that helped shape your business, your employees, or your family’s values?

Business succession often prompts reflection. Many owners begin thinking not only about what they have built, but also about the communities, schools, nonprofits, and organizations that contributed to their success. This conversation can help clients identify charitable priorities that might otherwise be left unexplored. It also creates an opportunity to discuss how a business transition could become a catalyst for meaningful community impact instead of simply a financial event.

3. Would you like your children or grandchildren to be involved in charitable decisions after the transition?

For many families, succession planning is about more than transferring wealth. It is also about passing along values. A donor-advised fund at the Lenawee Community Foundation can provide a flexible way for family members to participate in charitable decisions over time. Rather than making all charitable decisions immediately after a sale, a family can establish a fund, potentially involve multiple generations in recommending grants, and create a structure that supports ongoing conversations about philanthropy and community impact.

4. Are you interested in creating a charitable fund that can support multiple organizations over time?

Many business owners want to make a significant charitable commitment during a liquidity event but are not yet ready to determine exactly which organizations should receive support. A donor-advised fund can help bridge that gap. Clients can contribute assets during a high-income year, potentially receive a charitable deduction if eligible, and then recommend grants to charitable organizations over time. This flexibility allows clients to separate the timing of a charitable contribution from the timing of individual grant decisions.

A word of caution

Some clients may initially assume that a private foundation is the best vehicle for implementing their charitable goals alongside a business exit or succession plan. However, private foundations can be subject to complex rules governing self-dealing, excess business holdings, required distributions, investments, and other activities, not to mention the unfavorable tax deductibility rules for gifts of closely held stock to a private foundation as compared with a donor-advised fund. For many business owners, a donor-advised fund can provide a simpler alternative with significantly less administrative burden and, in many cases, more favorable tax treatment.

Our team is happy to work alongside you and your clients to explore charitable planning opportunities anytime you encounter a pending business succession situation. We’re honored to be your partner in helping clients create lasting impact through charitable giving.

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Indeed, recent headlines are a reminder that initial public offerings can create significant charitable planning opportunities. For example, CNBC’s article on SpaceX millionaires and wealth management, The Wall Street Journal’s “Tech’s Next IPO Wave Promises a Charitable Windfall,” and Business Insider’s coverage of newly wealthy SpaceX employees all point to the same theme: Liquidity events can quickly turn founders, executives, early employees, and investors into high-net-worth charitable clients.

Of course, for attorneys, CPAs, and financial advisors, the key is to bring up the topic of charitable planning as early as possible—ideally before shares are sold and before clients make irrevocable tax, investment, or estate planning decisions.

You may be curious about how IPOs and charitable planning might come together for your clients and how the Lenawee Community Foundation can help! Consider three scenarios for inspiration:

Scenario 1: Founder or executive with highly appreciated stock

A founder or executive approaching an IPO may be holding shares with very low basis and significant expected appreciation. Depending on timing, restrictions, and tax rules, contributing a portion of appreciated shares to a fund at the Foundation may help your client support charitable goals while potentially reducing exposure to capital gains tax. A donor-advised fund, field-of-interest fund, or designated fund, for example, can allow the client to create a long-term charitable strategy while maintaining flexibility after the IPO dust settles.

Scenario 2: Employee with a sudden wealth event

As recent SpaceX coverage illustrates, IPOs can create thousands of newly wealthy employees who may never have needed sophisticated charitable planning before. These clients may be juggling concentrated stock positions, tax liabilities, estate planning needs, and family conversations about wealth. A donor-advised fund at the Lenawee Community Foundation can provide a simple, organized way to set aside charitable dollars in a high-income year and then recommend grants over time as the client becomes more intentional about giving. This strategy is called “bunching.”

Scenario 3: Investor or family seeking legacy and multigenerational community impact

Some clients who benefit from IPO activity may already have significant wealth and want to use the liquidity event to formalize a philanthropic legacy. These clients may be good candidates for multiple charitable funds, such as a donor-advised fund for flexible family grantmaking, a scholarship fund to support education, and an unrestricted or field-of-interest fund to address changing community needs over time. Our team can work alongside you and your client’s full advisory team to align tax planning, family goals, and charitable impact.

Finally, and importantly, what’s the common thread across all three scenarios? Timing. Once an IPO, sale, or lock-up expiration is underway, some planning options may be limited. Advisors who ask charitable questions and bring the LCF team into the conversation early can help clients turn a major financial event into meaningful support for the causes they care about.

We welcome the opportunity to discuss clients’ charitable opportunities related to IPOs, appreciated stock, business interests, other complex assets—and anything else related to philanthropy. We’re here to help. It is our honor to be your first call on matters of charitable giving.

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Charitable planning beats AI?

In the article “Why Charitable Efforts Are the Advisor’s Edge in an AI-Driven World” appearing in Financial Advisor Magazine, the author suggests that charitable planning may become an increasingly significant way for advisors to differentiate themselves as artificial intelligence automates more traditional planning and investment functions. The article argues that conversations about philanthropy, legacy, and personal values create opportunities for advisors to build deeper client relationships in ways that technology cannot easily replicate, reinforcing the advisor’s role as a trusted counselor rather than simply a technical expert.

Donor-advised funds continue to grow. . .

In Financial Advisor Magazine‘s article “Making Sense of the DAF Surge: Five Things Financial Advisors Should Know,” the author takes a look at the continued growth of donor-advised funds and the factors driving their popularity. Among the key takeaways are that donor-advised funds simplify charitable giving, allow donors to separate the timing of tax deductions from grantmaking decisions, and facilitate gifts of appreciated assets. The article also notes that many clients increasingly expect charitable planning to be integrated into broader wealth management conversations, making familiarity with donor-advised fund strategies an important competency for advisors.

. . .and that is good news for charities.

The article “DAF Fundraising Report: Nonprofit Takeaways” on Candid’s website highlights findings showing that donor-advised fund donors are often highly engaged philanthropists who give repeatedly and frequently make larger charitable gifts over time. The report encourages nonprofits to strengthen relationships with donor-advised fund donors, improve stewardship efforts, and make it easier for donors to recommend grants through their charitable giving accounts. This article is useful to advisors because it connects the dots between donors, donor-advised funds, and nonprofit organizations.

What’s the takeaway?

Remember that our team can provide a wide range of solutions for your clients’ charitable giving needs, including donor-advised funds, legacy planning, information about community needs and nonprofits, and ways to involve family members in philanthropy. We’re here to be a trusted charitable giving resource for you and your clients. 

Thank you for the opportunity to partner with you in serving our community.

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Tackling the details is important. Effective charitable planning also requires something broader, and that’s context. That’s why our team is committed to keeping you up to date on research and trends that affect philanthropy and related strategies at a macro level. Indeed, charitable planning does not occur in a vacuum; it exists within a rapidly evolving nonprofit sector and a dynamic legislative and regulatory environment.

In that spirit, we’re sharing three important trends and updates:

Philanthropy—including your clients’ gifts—supports a larger and more complex nonprofit sector than ever before.

Charitable giving is going strong! In 2025, Americans contributed an estimated $617 billion to support causes ranging from local nonprofits and places of worship to educational institutions and animal welfare organizations. This fell just short of the record set during a pandemic-related surge in philanthropy, but nevertheless, 2025 represents one of the highest levels of charitable giving ever recorded.

Consistent with that trend, in its recent report, The U.S. Tax-Exempt Sector Explained: The Growing Role of Nonprofits in America, the Bipartisan Policy Center highlights the significant growth of the nonprofit sector over the past several decades. Nonprofits today provide essential services, strengthen communities, advance education and healthcare, and address needs that government and the private sector often cannot meet on their own. This signals an important reminder to advisors that charitable planning is not simply a tax exercise. Helping your clients support charitable organizations can have meaningful implications for communities and local economies well beyond the organizations receiving the gifts.

Charitable planning tools continue to evolve.

PG Calc’s recent article, The State of Play: Navigating the Current Landscape of QCD Legislation and DAF Regulations, provides a helpful review of ongoing discussions in Washington surrounding Qualified Charitable Distributions and donor-advised funds. These tools continue to offer valuable planning opportunities for many clients, and the article serves as a reminder that charitable planning strategies are shaped by legislation, regulation, and public policy discussions. Advisors who stay informed about potential changes are often better positioned to help clients adapt as the charitable planning landscape evolves.

Clients increasingly expect charitable planning to be integrated into broader financial and estate planning conversations.

Philanthropy is becoming more sophisticated, more visible, and more interconnected with wealth transfer, retirement planning, tax planning, and legacy goals. A recent article in Financial Advisor Magazine highlighted once again the importance of philanthropy to high net worth families, which in turn means that advisors who work with these clients must be familiar with donor-advised funds and other charitable planning tools. Clients often look to their trusted advisors not only for technical expertise, but also for perspective on how charitable giving fits into their overall financial picture.

The bottom line is that context matters! By working with our team to stay informed about trends affecting nonprofits, charitable incentives, and philanthropic planning, you can better serve your charitable clients and help them achieve both their financial and estate planning goals while creating lasting community impact.

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What’s especially notable is that in recent years, Congress has expanded planning opportunities by indexing annual giving limits for inflation ($111,000 per person in 2026) and allowing certain one-time QCDs (“Legacy IRAs”) to fund charitable gift annuities and charitable remainder trusts. And now, proposed legislation known as the “Charity Parity Act” would, if enacted, extend QCD treatment beyond IRAs to include employer-sponsored retirement plans such as 401(k)s, 403(b)s, and 457(b)s. This potential change in the law would remove the extra step of rolling assets into an IRA before making a charitable gift, simplifying the process for many donors whose retirement savings remain primarily in workplace plans.

Consider a typical client scenario. Your client, age 74, is taking Required Minimum Distributions (“RMDs”) from a traditional IRA. Because the client claims the standard deduction, charitable gifts do not generate additional tax savings. By instead directing a portion of the RMD to a qualified charity as a QCD, the client can satisfy part or all of the RMD obligation without increasing taxable income. In many cases, this can also help reduce Medicare premium surcharges and lessen the taxation of Social Security benefits, creating planning advantages beyond the charitable deduction itself.

Here are three examples of how the Lenawee Community Foundation can help your client achieve charitable goals through QCDs:

1. A client directs a QCD from an IRA to Lenawee’s Health, Happiness, and Hope Fund at the Lenawee Community Foundation to support broad community needs. The client satisfies part or all of the client’s annual RMD requirements while supporting flexible grantmaking that addresses changing priorities in the region.
2. A client uses a QCD to contribute to a field-of-interest fund at the Lenawee Community Foundation focused on causes such as education, healthcare, the arts, or environmental conservation. This allows the client to support a specific area of passion while relying on the Lenawee Community Foundation’s expertise to identify effective nonprofit organizations over time.
3. A client makes a QCD to an existing designated fund or scholarship fund held at the Lenawee Community Foundation. For example, the client may support a favorite local nonprofit through a designated fund or help students pursue higher education through an endowed scholarship fund, all while reducing taxable income through a QCD.

Keep in mind that charitable giving with IRAs goes beyond current gifts to charity! As part of advising clients about their IRAs, be sure to check their beneficiary designations. Not only is it tax advantageous for a client to name a fund at the Lenawee Community Foundation or other public charity as beneficiary of an IRA, but it’s also a best practice to avoid problems in the future. (Retirement plan beneficiary designations continue to show up in cautionary tales!)

For attorneys, CPAs, and financial advisors, developments related to QCDs are worth watching closely. QCDs increasingly serve as a natural connector among retirement planning, philanthropy, and legacy conversations. Just as importantly, QCD discussions often open the door to broader planning opportunities, helping clients align financial goals with the causes and communities they care about most. As always, please reach out to the Lenawee Community Foundation anytime! 

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Here are three things to know:

—Mainstream media is picking up the pace in its coverage of charitable planning techniques. For example, the Wall Street Journal recently published an article about donor-advised funds as a tool for tax savings and community impact. Many clients may not realize that the Lenawee Community Foundation offers donor-advised funds, along with other options for structuring a charitable giving plan to support their favorite causes and address critical community issues. Be sure to reach out to the Lenawee Community Foundation whenever a client asks you about setting up a donor-advised fund. 

—Thoughtful planning is especially important in light of the new floor on itemized charitable deductions. Starting in 2026, to be eligible for a deduction, a client’s qualified deductions must exceed 0.5% of adjusted gross income, essentially raising the threshold at which charitable giving produces a tax benefit. This could make it advantageous for some of your clients to “bunch” charitable contributions through a donor-advised fund, allowing the client to front-load donations into a single tax year to cross the threshold. 

—At the same time, under a “cap” provision in the new law, if a client is in the 37% federal income tax bracket, itemized charitable deductions are now capped at the 35% tax rate. In simplified terms, depending on other factors, this means that if a client donates $10,000, the tax break would be $3,500 instead of $3,700. In short, the floor and the cap add extra complexity to helping clients plan their charitable contributions. 

—The new tax laws have changed the landscape for not only your clients who itemize deductions but also for those who do not itemize. Non-itemizers are now eligible for an “above the line” deduction of $1,000 for single filers and $2,000 for joint filers. Be aware, however, that the new deduction for non-itemizers does not apply to noncash gifts or gifts to donor-advised funds. Because both noncash gifts and gifts to donor-advised funds are important tax planning tools for many clients, this limitation is worth noting in your discussions. 

—Finally, remember that donating appreciated stock held for more than one year is usually more tax-efficient than writing a check. That’s because it allows your client to avoid capital gains tax on the appreciation. What’s more, clients who itemize deductions will be eligible to claim a tax deduction for the full fair market value. 

Please reach out to the Lenawee Community Foundation anytime. We know the new tax laws add a lot to your plate, and we are always happy to point you in the right direction as you conduct research and offer counsel to your clients. And remember, you don’t have to jump headfirst into the complexity during your client discussions. Even talking about philanthropy in the simplest terms can help strengthen your client relationships and grow your practice.

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But for some clients—especially business owners, collectors, and affluent retirees—valuable assets may take a different form entirely. Boats, airplanes, cars, RVs, and other tangible property can represent a mixed bag of characteristics: significant wealth, ongoing maintenance costs, and emotional attachment, all of which may add up to a charitable giving opportunity. These situations may no longer be one-off cases. Classic cars are a notable example, with some estimates tallying the total at more than 43 million vehicles in the United States alone—an estimated $1 trillion in total insurable value!

Here are four tips to consider as you work with your charitable clients.

Always reach out to the Lenawee Community Foundation

Anytime you’re dealing with a charitable client, please reach out to the Lenawee Community Foundation to explore your client’s options. Your clients may be surprised to learn that public charities, such as the Lenawee Community Foundation, can accept a wide range of noncash assets, provided the assets can be evaluated, valued, transferred, and ultimately liquidated to support your clients’ charitable goals.

Ask questions beyond balance sheet basics

Clients may forget to mention that they own highly appreciated noncash assets. As clients prepare to meet with you, they are often so focused on gathering investment statements and real estate information that they forget about classic cars, RVs, planes, and boats! Comprehensive conversations are especially timely as many affluent households continue to hold substantial wealth outside of traditional investment portfolios. Recreational assets purchased years ago may now hold significant value while also generating ongoing expenses, storage concerns, and succession-planning questions. Clients who are downsizing or simplifying during retirement may welcome charitable strategies that transform underused assets into community impact. 

Build your client’s charitable plan prior to a sale

When you spot unusual assets on a client’s balance sheet, and you know your client is charitable, it’s important to consider the possibilities. A client preparing to sell a classic car or boat, for example, could incur significant capital gains tax if the asset has appreciated in value. Contributing the asset to a fund at the Lenawee Community Foundation before a sale may help reduce or eliminate those taxes while also generating funds to support charitable causes the client cares about.

Pay attention to the rules

Gifts of noncash assets require careful coordination. Unlike publicly traded securities, these assets involve additional due diligence. Title transfers, appraisals, environmental reviews for real estate, insurance considerations, debt obligations, marketability, and liquidation logistics all require attention. The IRS also imposes specific substantiation and reporting requirements for charitable deductions involving noncash gifts.

The team at the Lenawee Community Foundation is happy to work alongside you and clients’ other attorneys, CPAs, valuation experts, and financial advisors to determine whether proposed gifts are feasible and which structures might be best. In many cases, the Lenawee Community Foundation can accept the asset and facilitate its sale.

The bottom line here is that for a charitable client, using a much-loved car collection, boat, or other luxury asset to support favorite causes and address community needs may be far more appealing than knowing the asset could sit in storage for years and years, with no end in sight to the maintenance expenses. You can add tremendous value by helping your clients consider whether highly specialized collections and “passion assets” are better suited for charitable planning than for transfer through an estate, especially when heirs may not share the same interest in maintaining or managing them. Whether your client owns a rare bicycle collection, antique toy collection, classic cars, or a country music producer’s private library, conversations about donating unusual assets can help clients simplify their estates, support charitable priorities, and avoid placing the emotional and logistical burden of niche collections on the next generation.

Please reach out anytime!

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But what happens to charitable assets in the event of divorce? Over the last few years, in the wake of high-profile divorces, more and more advisors have been pondering this question. It’s certainly worth considering so you can be prepared if–and likely when–you encounter such a situation. It’s especially important as women play an increasingly important role in a couple’s philanthropy. 

For many couples, philanthropy is deeply personal and closely tied to shared values developed over time. What’s more, advisors who engage both partners on all planning matters, including charitable giving, are more likely, according to research described in a recent white paper, to grow their practices and earn client referrals. 

But from a legal standpoint, charitable giving during marriage is not purely personal—it is often subject to the same rules that govern other marital assets. In community property states, for example, assets acquired during marriage are generally considered jointly owned, and spouses owe fiduciary duties to one another regarding the use of those assets. That framework can create complications when one spouse makes a significant charitable gift without the other’s knowledge or consent. Indeed, unilateral gifts of community property may be challenged, and in some cases, the full value of the gift may be attributed back to the donating spouse in a divorce proceeding. This may be a surprising outcome for clients who assume that charitable intent alone resolves any questions about ownership or control.

The implications extend beyond outright gifts. Philanthropic vehicles such as donor-advised funds, private foundations, and charitable trusts can also become points of negotiation in divorce. These structures may no longer be considered part of the marital estate once funded, but questions about control, governance, and ongoing advisory privileges can still create tension between spouses.

For attorneys, CPAs, and financial advisors, the takeaway is clear: charitable planning does not exist in a vacuum. Conversations about significant gifts—especially those made during marriage—should include coordination with legal counsel and, where appropriate, documentation of mutual intent. Encouraging clients to align on charitable decisions in advance can help avoid disputes later and preserve both financial and philanthropic goals.

As always, remember that the Lenawee Community Foundation is here for you! Whether a client is considering a current gift, establishing a charitable vehicle, or navigating a complex life transition such as divorce, the Lenawee Community Foundation can serve as a resource to help implement the recommendations of legal and tax counsel in a way that is both effective and durable. Anytime you are talking with a client about charitable giving, give us a call! Including the Lenawee Community Foundation early in the conversation can help ensure that your clients’ charitable intentions are carried out smoothly, even when circumstances change. 

We look forward to working together! 

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Consider this scenario.

When David and Laura arrive at your office for their annual planning meeting, the tone feels different from prior years. In their early 70s and recently retired, David and Laura have always approached financial decisions with a long-term mindset. But today, Laura opens the conversation with a note of concern.

“We’re not panicking,” she says, “but it’s hard to ignore what’s going on in the markets. It just feels unsettled.”

You nod. You’ve been hearing similar sentiments from many clients. Even when portfolios remain relatively strong, uncertainty alone can create stress. Studies have consistently shown that financial concerns weigh heavily on emotional well-being across generations, and market volatility tends to amplify those feelings.

As you walk through David and Laura’s portfolio and estate plan, the numbers tell a reassuring story. Their overall financial plan is still on track, and their estate plan still reflects their goals. But you recognize that this moment calls for more than reassurance. It is an opportunity to reframe how charitable giving fits into the broader picture.

“You’ve both been incredibly consistent in your support of local organizations,” you say. “Tell me how you’re feeling about giving this year.”

David pauses. “We still want to give,” he says. “We just don’t want to make a mistake if the market gets worse.”

That hesitation is familiar. Rather than pulling back entirely, many clients simply need a way to move forward with confidence.

You start with a simple reminder.

“Not all stocks are down.”

You point to a portion of their portfolio that has performed well over time. These appreciated positions present an opportunity. By contributing long-term appreciated stock to their donor-advised fund at the Lenawee Community Foundation, David and Laura may be able to avoid capital gains tax while supporting the causes they care about. Even in a volatile market, this strategy remains one of the most efficient ways to give.

Laura leans in. “So even now, that still makes sense?”

“It often does,” you reply. “And it can give you flexibility. You can make the gift now, receive the tax benefits, and then take your time recommending grants.”

The conversation begins to shift. Instead of focusing solely on uncertainty, David and Laura are now thinking about options.

You also gently raise another point.

“Market cycles come and go, but community needs don’t pause.”

You explain that periods of economic strain often increase demand for nonprofit services, particularly for households already feeling the effects of inflation and rising costs. The Lenawee Community Foundation is closely connected to these needs and can help ensure that their giving is as impactful as possible.

Finally, you mention a strategy they have not yet used.

“Because you’re both over 70 ½, we should also look at Qualified Charitable Distributions from your IRAs.”

You walk them through how a QCD could satisfy required minimum distributions while avoiding income tax on those amounts. For clients in their stage of life, it is a straightforward and effective way to continue supporting charitable priorities regardless of market conditions. “You can direct your QCDs to certain types of funds at the Lenawee Community Foundation,” you explain. “You can’t use them to add to your donor-advised fund (at least not yet), but you can support the Foundation’s strategic priorities to help the whole region thrive.”

By the end of the meeting, David and Laura feel a renewed sense of clarity. They decide to move forward with a gift of appreciated stock to a donor-advised fund and explore a QCD over the summer to avoid the year-end rush. Just as importantly, they feel reassured that their charitable giving does not need to stop simply because the market feels uncertain.

Situations like this are increasingly common. Even the possibility of a downturn can shape client behavior, but it can also open the door to meaningful planning conversations and help keep charitable giving going strong across our community. As always, the Lenawee Community Foundation is here to help you navigate these discussions—offering practical strategies, local insight, and support for your clients’ charitable goals in every type of market environment.

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Recent research underscores just how pronounced this divide is becoming. Individuals with a net worth of $30 million or more—often referred to as ultra-high-net-worth donors—are playing an increasingly outsized role in philanthropy, accounting for a significant and growing share of total charitable giving. At the same time, policy changes are encouraging broader participation at the other end of the spectrum, bringing new donors into the fold even if their initial gifts are modest. The result is a philanthropic landscape that is simultaneously becoming more concentrated and more expansive.

For your ultra-high-net-worth clients, charitable giving is rarely about a single transaction. Instead, it is often deeply integrated into long-term planning around wealth transfer, business succession, and family legacy. These clients may be evaluating complex assets, timing considerations, and multigenerational involvement. Conversations tend to focus on strategy—how philanthropy aligns with identity, values, and long-term impact. The Lenawee Community Foundation can help you navigate these discussions by offering flexible structures, local insight, and support for engaging the next generation in meaningful ways.

By contrast, clients earlier in their wealth-building years—including the children and grandchildren of ultra-high-net-worth clients—may be engaging with charitable giving in a more incremental and exploratory way. The availability of a charitable deduction for non-itemizers creates a new opportunity to introduce philanthropy as part of their financial lives sooner than in the past. For these clients, the focus is often on establishing habits, identifying causes, and understanding how giving fits alongside other priorities. Even relatively small gifts can serve as the foundation for lifelong philanthropic engagement. (Note that the new deduction for non-itemizers applies only to cash gifts and is not available for gifts to donor-advised funds.)

These two groups are not just separated by wealth—they are operating under different incentives, different planning horizons, and different motivations. As a trusted advisor, recognizing these distinctions can help you tailor your conversations and add value in more meaningful ways. Some clients may benefit from sophisticated planning strategies, while others simply need a clear and accessible entry point.

Here is one final but important point: Regardless of whether a client itemizes or doesn’t itemize, pay close attention to clients who are age 70 ½ and over and who own IRAs. Qualified Charitable Distributions are a powerful and tax-advantaged tool for clients to transfer up to $111,000 per taxpayer (2026 limit) to support favorite causes. What’s more, proposed legislation may open the door for your clients to use QCDs to fund their donor-advised funds at the Lenawee Community Foundation. Right now, clients can use QCDs to fund field-of-interest, unrestricted funds, and certain other types of funds at the Foundation, but not donor-advised funds.   

As always, the Lenawee Community Foundation is here to support both ends of this spectrum. Whether your client is structuring a complex gift involving closely held assets or taking the first steps toward organized charitable giving, our team can help you identify the right approach. We are honored to be your partner in serving your charitable clients across every stage of their philanthropy journey.

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