In light of these trends, it may be especially helpful for estate planning attorneys, CPAs, and financial advisors to make IRAs part of the charitable planning conversation. Why? Because:

–Clients may blur the two opportunities together

–Clients may know about one opportunity but not the other

–Clients may simply not realize that IRAs and other retirement assets can play a role in their charitable plans at all

So, what are these opportunities, in plain language, that you can use with your clients? Here’s a primer:

Lifetime giving opportunities for clients age 70½ and older

As you likely know, a client age 70½ or older may make a Qualified Charitable Distribution (QCD) directly from an IRA to a qualified charity, including some types of funds at the Lenawee Community Foundation (but not a donor-advised fund, although pending legislation could change that). In 2026, the inflation-adjusted QCD limit is $111,000 per taxpayer.

QCDs can become particularly relevant for a client when required minimum distributions begin, currently at age 73. A QCD can count toward a client’s RMD while still excluding the distributed amount from taxable income, assuming applicable requirements are met. But there is no need to wait until RMD age to begin the conversation. The QCD opportunity begins at 70½.

Under current law (note that legislation is pending that could change it), QCDs generally must come from IRAs; distributions directly from employer-sponsored retirement plans such as 401(k)s and 403(b)s do not qualify.

Legacy giving opportunity for clients of all ages

A separate opportunity comes into play when considering a client’s legacy. A client can name a charity (including a donor-advised fund at the Foundation) as the beneficiary of an IRA or other type of eligible retirement plan, allowing some or all of the assets remaining in the account at death to pass to charity. The designation itself is relatively simple, and it can be incorporated into a client’s overall estate and charitable planning without necessarily changing the client’s current lifetime giving.

This technique is especially useful because retirement plan assets passing to a charitable beneficiary typically are not subject to the income tax that generally applies when heirs receive taxable distributions from inherited traditional IRAs and retirement plans.

So, what’s the issue?

Clients sometimes do not realize that these opportunities are independent of one another. One client might use QCDs to support favorite charities throughout retirement and also name a charity as the beneficiary of some or all of a retirement account. Another client may have little interest in lifetime IRA giving but find the beneficiary designation compelling as part of a legacy plan.

That’s why charitable planning with retirement assets can be an ongoing conversation. Retirement balances change. Charitable interests evolve. Clients reach new ages and life stages. Estate plans get updated. And a client who wasn’t ready to consider one of these strategies the last time you discussed charitable giving may be ready now.

As retirement assets continue to grow and the Great Wealth Transfer accelerates, two simple questions can help keep both opportunities in the conversation with charitably inclined clients:

–If you’re 70½ or older, could your IRA help support the causes you care about during your lifetime?

–Could your retirement assets play a role in the legacy you ultimately leave behind?

It’s also worth watching pending legislation that might expand the ways your clients can use QCDs. Congress is considering two bipartisan charitable giving proposals: the Charity Parity Act, which would permit QCDs directly from employer-sponsored retirement plans, such as 401(k)s, in addition to traditional IRAs, and the IRA Charitable Rollover Facilitation and Enhancement Act, which would extend QCD eligibility to donor advised funds. Neither proposal has advanced beyond committee, but both remain pending and could expand charitable giving options for clients if enacted.

Whether the conversation is about giving during a client’s lifetime, planning a charitable legacy, or both, our team is here as a resource. We’re happy to work alongside you to explore how retirement assets may help your clients support the people and causes they care about, now and in the future.

The post Apples and oranges: Lifetime and legacy giving with IRAs appeared first on Lenawee Community Foundation.

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.

The post Year-end checklist: Repeat, repeat, repeat appeared first on Lenawee Community Foundation.

Here’s what caught our attention.

Generous tech

Tech millionaires are turning to donor-advised funds to save on taxes while giving to charity
–CNBC

A wave of newly wealthy tech employees is using donor-advised funds to contribute appreciated company stock, potentially avoiding capital gains taxes, securing charitable deductions, and giving themselves time to decide which nonprofits to support. The trend is a good reminder for advisors that IPOs and other liquidity events can create significant charitable opportunities—and that the best results often come when charitable planning begins before the transaction. When clients begin talking about a potential exit, even one that may be years away, consider bringing our team into the conversation early.

Philanthropy beyond DAFs

Philanthropic Planning Is Wealth Management’s Next Competitive Frontier, Beyond DAFs
–InvestmentNews

Donor-advised funds are important tools, but they are not the whole philanthropic toolbox. This article explores why high-net-worth clients increasingly expect wealth advisors to help them consider a broader range of charitable structures and how that expertise can help advisors strengthen relationships not only with clients, but also with the next generation. The Foundation offers a range of fund types and charitable planning options that can help you and your clients build lifetime and legacy giving plans aligned with their financial and charitable goals.

Donor-advised fund insights

Five Core Truths About Donor-Advised Funds
–WealthManagement.com

This article takes on some common misconceptions about donor-advised funds, highlighting their usefulness for coordinating charitable giving and facilitating complex gifts, their significant grantmaking to charities, and their increasingly important role in charitable and succession planning. For advisors, the takeaway is that donor-advised funds have become an increasingly important part of the philanthropic landscape—and understanding how they actually work can help clients make better charitable planning decisions. Donor-advised funds are one of several charitable giving options our team can help you and your clients explore.

Even more donor-advised fund insights

Donor-Advised Fund Strategies For 2026
–Financial Advisor Magazine

This article looks at donor-advised funds through a 2026 planning lens, including how advisors can use donor-advised funds as part of broader tax and charitable strategies rather than simply as repositories for year-end gifts. The bigger opportunity is to help clients coordinate the timing, assets, and ultimate purpose of their charitable giving with the rest of their financial plans. Our team can work alongside you to help clients explore the charitable components of a coordinated giving strategy.

Big givers

Chickens, Pigs Could Be Big Winners From AI’s $300 Billion Philanthropy Wave
–Forbes

The AI boom is creating a new class of young, newly wealthy donors—and potentially an enormous new pool of charitable capital. This fascinating article explores how some of these donors are gravitating toward measurable, evidence-driven causes such as farm-animal welfare, illustrating both how sudden wealth can reshape philanthropy and why advisors working with newly wealthy clients have an opportunity to help turn rapidly created fortunes into intentional charitable plans. Closer to home, our knowledge of Lenawee County’s needs and nonprofits can be a valuable resource as you help clients of all ages and stages identify opportunities for meaningful community impact.

More big giving

Most Billionaires Practice ‘Slow Philanthropy.’ MacKenzie Scott Is a Major Exception
–Fortune

Why do people with enormous charitable capacity sometimes give relatively little of their wealth away each year? This article explores “slow philanthropy” and contrasts it with MacKenzie Scott’s faster, trust-based approach to giving. It raises an interesting issue for advisors: Sometimes effective charitable planning is not only about choosing the right structure or maximizing tax benefits, but also about helping clients feel comfortable actually putting charitable resources to work. Our team can be a sounding board as you help clients consider not only how to give, but also what they hope their generosity will accomplish.

Celebrating a life of giving

Dolly Parton’s Other Legacy: A Fortune Given Away, Dollar by Dollar

–New York Times

Dolly Parton’s philanthropy was unusually practical and personal, directing her wealth toward needs she understood firsthand—from childhood literacy and disaster relief in Tennessee to wildlife conservation and COVID-19 vaccine research. Her approach emphasized simple, direct action, and trust in recipients, a powerful example of how personal values can shape a meaningful charitable legacy.

Her generosity is especially close to home for us. The Lenawee Community Foundation is the local partner for Dolly Parton’s Imagination Library in Lenawee County. Through our Lenawee Imagination Library program, we raise the funds needed to cover the local cost of participation, allowing Lenawee County children to receive a free book delivered to their homes each month at no cost to their families.

Dolly’s commitment to giving with purpose continues to be both inspirational and aspirational for our team, the advisors we work alongside, and the donors who make this work possible.

IRS has its eyes on assets

IRS Eyes Charitable Donation Abuse in New Audits, Tax Pros Say
–Bloomberg Law

The IRS is taking a closer look at charitable contributions of hard-to-value assets, including privately held business interests and art, with tax professionals reporting particular scrutiny of valuation, qualified appraisals, and substantiation requirements. For advisors, this is an important reminder that complex charitable gifts require careful planning and documentation— that bringing our team into the conversation early can help address the charitable side of the transaction before the client takes action.

Exits and opportunities

How Advanced Charitable Exit Planning Drives AUM Growth
–Financial Advisor Magazine

Business exits can be important charitable planning moments, particularly when advisors raise the subject before a transaction is already underway. This article explores how strategies involving charitable trusts, donor-advised funds, and gifts of business interests can help address a business owner’s tax and philanthropic objectives while also helping advisors deepen relationships and potentially retain more assets under management after the sale. It’s another good reminder to bring charitable planning into the conversation as early as possible.

The checkbook (cringe) lives on!

Retirees Over 70½ Can Send $111,000 a Year From an IRA to Charity Tax-Free. The Average One Donates From Checking Instead.
–24/7 Wall St.

Many charitably inclined retirees are still giving from their checking accounts even though a Qualified Charitable Distribution (QCD) may offer a more tax-efficient route for eligible IRA owners. The article is a useful reminder that advisors can add value simply by asking how a client is making charitable gifts: Sometimes changing the asset or account used to make the same gift can produce a very different tax result. Our team can help your clients explore eligible ways to make QCD gifts, including, where appropriate, gifts to designated, field-of-interest, and unrestricted funds. Remember that QCDs cannot be made to donor-advised funds.

What’s the takeaway?

Even a quick skim of these articles reveals a common thread: Charitable planning opportunities are showing up everywhere—from newly minted tech wealth and business exits to retirement accounts, complex assets, and the rapidly evolving world of donor-advised funds. Just as important, the articles reinforce that good charitable planning is about more than finding a tax break or selecting a giving vehicle. It’s about helping clients make thoughtful decisions about what to give, when to give, and what they hope their generosity will accomplish.

When those conversations come up, our team is here as a resource. We welcome the opportunity to work alongside you and your clients to turn charitable goals into thoughtful plans and meaningful community impact.

The post Reading roundup: What’s worth a skim in charitable planning appeared first on Lenawee Community Foundation.

—“Whereas careful estate planning can greatly assist Americans in preserving assets built over a lifetime for the benefit of family, heirs, or charities.”

—“Whereas estate planning involves many considerations, including safekeeping of important documents, documentation of assets, operation of law in the various States, preparation of legal instruments, insurance, availability of trust arrangements, charitable giving, inter vivos care of the benefactor, and other important factors.”

—“Whereas alternatives to disposition of assets after death, such as planned gift-giving, may accomplish a benefactor’s goal of providing for his or her family and favorite charities.”

What’s especially noteworthy is the intentional inclusion of charitable giving throughout the resolution. For attorneys, CPAs, and financial advisors, National Estate Planning Awareness Week is a good time to consider whether you’re asking each client a simple question that can open an important conversation sometimes overlooked in the estate planning process:

“Are there charitable causes you would like to include in your estate plan?”

Sounds simple, right? It’s just thirteen words. Still, advisors may not address charitable giving as consistently or thoroughly as clients would like, according to the 2026 TPI Study of the Philanthropic Conversation, which surveyed high-net-worth clients and wealth advisors, trust and estate attorneys, accountants, and other tax professionals.

Here’s what stands out in the findings:

—80% of HNW clients agreed that advisors have an obligation to engage them in conversations about charitable activity.

—93% of clients who discussed philanthropy with advisors considered the advisor’s role important.

—While 99% were satisfied overall, only 61% reported being very satisfied with charitable planning discussions.

The key takeaway: There may be an opportunity to go deeper. Keep in mind that even clients who have never thought of themselves as philanthropists may welcome the opportunity to fully discuss and structure their charitable intentions beyond their lifetimes, such as through a charitable bequest to a favorite organization or a fund at the Lenawee Community Foundation, or by naming a charity as the beneficiary of retirement assets. Raising the subject in more than a cursory way can also lead to broader conversations about family, values, getting the next generation involved, and legacy—conversations that can help you better understand what matters to your clients.

So ask the thirteen-word question—“Are there charitable causes you would like to include in your estate plan?”—but don’t stop there. If the client answers “yes,” listen closely to what they say. As the conversation develops, consider bringing our team in as a resource. We can help you and your client explore giving vehicles and approaches that align with the client’s intentions while you continue to guide the overall legal, tax, and financial planning.

We’re honored to be your first call when charitable giving comes up in conversations with your clients. Five of our favorite words to hear from tax and estate planning advisors are, “Could you help us with …” The answer is always: We’d be happy to.

The post Estate planning: Go beyond the thirteen magic words appeared first on Lenawee Community Foundation.

Because QCDs are so useful, our team is keeping an eye on pending legislation that might expand the ways your clients can use them. Specifically, Congress continues to consider two bipartisan charitable giving bills: the Charity Parity Act (S. 2204/H.R. 4495), which would permit QCDs directly from employer-sponsored retirement plans, such as 401(k)s, in addition to traditional IRAs, and the IRA Charitable Rollover Facilitation and Enhancement Act (S. 3975), which would extend QCD eligibility to donor-advised funds. Neither proposal has advanced beyond committee, but both are still active and could expand charitable giving options for your clients if enacted.

We’ll continue to keep you informed as these proposals develop.

The post A quick note about pending legislation appeared first on Lenawee Community Foundation.

Four recent articles reinforce a common point: the most effective charitable planning rarely happens in response to a single tax event. Instead, it grows out of ongoing conversations about a client’s values, family, financial goals, and legacy.

How to Turn Wealthy Clients’ Charitable Giving Into a Cohesive Plan

–Kiplinger

This article encourages advisors to move beyond treating charitable gifts as one-off transactions and instead help clients develop a coordinated philanthropic strategy across tax planning, estate planning, wealth transfer, and family dynamics.

When Clients Ask About Their Tax Bill, the Answer Might Be Philanthropy
–Advisor Perspectives

The focus of this article is that major tax events—such as business sales, retirement plan distributions, or highly appreciated assets—often create ideal opportunities to discuss charitable giving. Even though the transactional elements might spark a conversation, substantive charitable planning goes far beyond a single transaction and is most effective when it becomes part of a broader financial planning conversation.

Purpose-Driven Wealth Starts with Asking the Right “Why”
–InvestmentNews

This article outlines why technical expertise is important, but meaningful planning begins by understanding what clients hope to accomplish with their wealth. Advisors who ask deeper questions about values, purpose, and legacy can naturally open the door to conversations about intentional charitable planning and stronger long-term client relationships.

The High-Net-Worth Want Philanthropy Guidance

–Financial Advisor Magazine

The article reports that high-net-worth clients increasingly expect their financial advisors to provide philanthropic guidance as part of comprehensive wealth planning. This creates a meaningful opportunity for advisors who proactively include charitable giving in conversations with their clients.

Taken together, these articles reveal a clear pattern: Clients don’t simply want to save taxes—they want their wealth to reflect what matters most to them. Our team can be a resource as you explore those goals with your clients and bring charitable planning into the conversation early. We welcome the opportunity to work alongside you and your clients.

The post Moving from charitable transactions to charitable strategy appeared first on Lenawee Community Foundation.

A popular strategy that deserves special attention in year-end planning is “bunching” charitable contributions. The bunching concept became widely discussed when the Tax Cuts and Jobs Act of 2017 substantially increased the standard deduction for calculating income tax. According to important historical data, this change caused many taxpayers who previously itemized deductions to begin claiming the standard deduction instead because their annual charitable gifts and other deductible expenses were no longer sufficient to exceed the standard deduction threshold.

Since the beginning of 2026, charitable planning has become even more nuanced. The One Big Beautiful Bill Act added a new limitation under Internal Revenue Code Section 170 requiring that itemized charitable deductions must generally exceed 0.5% of adjusted gross income before a deduction is available. In addition, Section 68 now effectively limits the tax benefit of itemized deductions for taxpayers in the highest marginal income tax bracket to 35%. These two new provisions are sometimes called the “floor” and the “cap.” Although in many cases charitable giving remains highly tax-efficient, these changes make proactive planning increasingly important.

So, what is “bunching”? And why is it so useful under current tax law? Here’s how it works:

—Rather than making charitable gifts in roughly equal amounts each year, a client may benefit from consolidating two or more years of planned charitable contributions up front into a single tax year.

—By concentrating, or “bunching,” donations into one year, the client may be better positioned to itemize deductions in that year while claiming the standard deduction in subsequent years, potentially producing greater cumulative tax savings over time.

For many of your clients, a donor-advised fund at the Lenawee Community Foundation serves as an effective vehicle for implementing a bunching strategy. That’s because a client can make a single, larger contribution to the donor-advised fund, generally claim the charitable deduction in the year of the contribution under Internal Revenue Code Section 170(a), and then recommend grants to favorite charities now and in future years. In short, the timing of the income tax deduction is separated from the timing of charitable distributions, allowing the client’s favorite nonprofits to continue receiving consistent annual support.

As year-end approaches, many clients will naturally ask whether they should “bunch,” or accelerate, charitable gifts before December 31. Advisors who raise the bunching conversation now and coordinate early with our team can help clients evaluate whether this strategy aligns with both their philanthropic objectives and their broader financial plans while allowing plenty of time to implement the strategy thoughtfully.

Bunching is not the only technique worth considering well before year-end! Here are two additional important reminders for your client conversations:

—Remember that charitable planning opportunities are typically even more attractive when appreciated securities are involved. Under Internal Revenue Code Section 170(e)(1)(A), a client who contributes long-term appreciated publicly traded securities to a public charity, including a donor-advised or other type of fund at the Foundation, generally may deduct the property’s fair market value (subject to the applicable adjusted gross income limitations) while avoiding recognition of the built-in capital gain that otherwise would result from a sale. This is usually a much better tax outcome than giving cash.

—Note that Qualified Charitable Distributions allow IRA owners age 70 ½ or older to give directly to charity tax-free—up to the 2026 annual limit of $111,000—even before required minimum distributions begin, potentially lowering adjusted gross income and reducing taxes on Social Security benefits and Medicare premiums. For a subset of your clients, this is important in light of the charitable deduction limitations under the One Big Beautiful Bill Act.

Our team is honored to work alongside you all year long to help structure charitable gifts in a way that advances your clients’ philanthropic goals while making the planning process as seamless as possible. We welcome the opportunity to help you and your clients get an early start on year-end charitable planning.

The post Bunching charitable gifts, year-end, and getting ahead appeared first on Lenawee Community Foundation.

So, what happens when one of these clients starts asking questions about what’s on their tax return? For instance:

“Wait a minute. I distinctly remember that my stock was worth $81.95 per share when the market closed on the day I transferred 100 shares to the Foundation to add to my donor-advised fund. But my tax return is showing a deduction amount less than $8,195. Is that a mistake?”

It’s a great question, and of course you know the answer! When a client contributes publicly traded securities to a fund at the Lenawee Community Foundation—or directly to another public charity—the amount of the charitable deduction is indeed based on the fair market value of the asset at the time of the gift under Internal Revenue Code Section 170 and Treasury Regulation § 1.170A-1(c). For publicly traded securities, however, “fair market value” is not ordinarily the closing price. Instead, the IRS valuation rule generally uses the average between the highest and lowest quoted selling prices on the date of the contribution. This methodology appears in Treasury Regulation § 20.2031-2(b)(1), outlining the IRS’s longstanding valuation rules.

Here’s a simple example.

Suppose a client transfers shares to a donor-advised fund at the Foundation on August 20. On that date:

• High price: $82.40
• Low price: $79.60
• Closing price: $81.95

Many clients understandably assume their deduction will be based on the $81.95 closing price. Under the applicable valuation rules, however, the value generally used is the average of the high and low prices:

($82.40 + $79.60) ÷ 2 = $81.00 per share

The difference may be relatively small in many cases. For larger gifts, or during periods of market volatility, it can become meaningful.

You may know this rule well, but many clients do not. That’s why it’s a good idea to remind a client about this rule when they’re making gifts of appreciated stock. It is also important to remember that determining the valuation date itself may involve additional analysis. The relevant date is generally the date the gift is considered complete for federal tax purposes, which may differ depending on how the securities are transferred and when control passes to the charitable organization. Because of these nuances, it’s wise to coordinate closely with our team whenever timing is critical, such as at year end.

Fortunately, our team regularly works with gifts of appreciated securities and can help facilitate a smooth transfer. Especially as the fall planning season approaches, clients often focus on maximizing charitable deductions while avoiding capital gains tax on appreciated investments. Being prepared to explain why the deduction is based on the average of the day’s high and low—not simply the closing price—can be a helpful component of client conversations.

Please reach out to our team anytime, especially when a client is getting ready to transfer stock. We will keep an eye out for it and help ensure the transfer and processing go smoothly. Thank you for the opportunity to partner with you in serving your clients!

The post Highs and lows: Reminding clients about stock gifts appeared first on Lenawee Community Foundation.

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.

The post Business succession planning: Four questions and one word of caution appeared first on Lenawee Community Foundation.

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.

The post IPOs and charitable clients: Three scenarios for impact appeared first on Lenawee Community Foundation.