29 Jan Keep going: Why donor-advised funds are still essential
For many donors, the end of 2025 brought a rush of charitable giving decisions. New tax laws that took effect Jan. 1, 2026, introduced a 0.5% “floor” and a 35% “cap” on charitable deductions, prompting many high-income taxpayers to make gifts before the changes went into place. Donor-advised funds played a key role in that planning, allowing donors to contribute assets in 2025, secure the available tax benefits and then take time to thoughtfully support the causes they care about in 2026 and beyond.
So what now? Does a donor-advised fund still make sense?
The answer is yes. Even with new limits on deductibility, donor-advised funds remain ful and flexible tool for organizing and sustaining your charitable giving.
Charitable giving is ultimately driven by values, legacy and a desire to make a difference. A donor-advised fund helps you give with intention, not just for tax reasons. While tax benefits may be reduced for some donors, the broader advantages of a donor-advised fund have not changed.
A donor-advised fund allows you to separate the timing of your charitable contribution from the timing of your grants. This flexibility can be especially helpful during years of higher income or major financial events, while still giving you time to plan and refine your philanthropy.
Donor-advised funds at the community foundation offer additional benefits that go beyond the tax code. You gain access to local expertise, deep knowledge of community needs and nonprofits, and guidance to help align your giving with the impact you want to make. The foundation also handles administrative details, making charitable giving simpler and more efficient.
Just as important, a donor-advised fund can support long-term and multigenerational giving. It provides a structure for involving family members, sharing values and building a lasting philanthropic legacy that can evolve as your life and priorities change.
In short, a donor-advised fund at the community foundation remains a smart, flexible way to support the causes you care about while aligning your charitable giving with your broader financial and legacy goals.