6 Tax-Friendly Tips for Guiding Your Clients’ Year-End Giving

At the Community Foundation, we understand that year-end giving plays a crucial role in nonprofit fundraising, often contributing a significant portion of an organization’s annual revenue. In fact, research shows that 26% of online giving happens in December. With so many people receiving appeals from nonprofits at this time, it’s likely your clients are already considering their year-end contributions or soon will be. This makes it essential to initiate conversations with your clients early, well before the year-end rush.

To help guide these discussions, here are six key tips. And remember, the Community Foundation is here to support you! If you'd like to explore any of these strategies further, please reach out—we’re happy to assist.

1. Check in on Your Clients’ Goals

By talking with clients about their overall charitable goals, you can uncover which causes they are passionate about, how much they’d like to contribute now and in the future, and what kind of impact they hope to achieve. You can also discuss whether they’d like to include nonprofits in their estate plans. With these goals in mind, it becomes easier to develop tailored year-end giving strategies.

2. Explore a Variety of Fund Options

Donor-advised funds (DAFs) at the Community Foundation offer flexibility, personalized service, and expertise in supporting local impact. They’re an ideal choice for clients who value community-focused giving without the burdens of managing a private foundation. We also offer:

• Field-of-Interest Funds
• Designated Funds
• Legacy Funds
• Unrestricted Funds

Our team will work with you to find the best fit based on your clients' charitable goals. For example, if a client is considering a Qualified Charitable Distribution (QCD) from an IRA, a designated or field-of-interest fund might be the perfect fit.

3. Understand the Benefits of Our Donor-Advised Funds

DAFs at the Community Foundation allow clients to enjoy the benefits of private foundation-style giving, like strategic philanthropy and multi-year support, without the overhead of managing a private foundation. These funds provide options for anonymous giving, lower administrative costs, and are a great way for clients to engage meaningfully with the nonprofits that matter to them.

To explore more about how our DAFs can support your clients' giving, visit Donor-Advised Funds.

4. How a Donor-Advised Fund Works

Setting up a donor-advised fund with us is simple. You can help your client apply online in a matter of minutes, and once your client makes a tax-deductible gift—whether in cash, stock, or another appreciated asset—the fund is ready to go. From there, your client can recommend grants to eligible charities over time. A donor-advised fund offers similar flexibility to a private foundation but without the high administrative costs and legal complexities.

Clients can personalize their fund name (e.g., The Smith Family Fund) or align it with a specific cause (e.g., Fund for the Future of Anytown). They can even give anonymously if they prefer.

5. Maximize Both Giving and Tax Benefits

Our donor-advised funds allow clients to use a tax strategy called “bunching,” which helps them maximize itemized deductions in one tax year while still enabling them to distribute charitable gifts over multiple years. This approach ensures they can support their favorite nonprofits when it matters most without compromising their tax planning.

6. Think Beyond Cash Donations

While many clients default to giving cash, there are more tax-efficient ways to support the causes they care about. For example, donating highly-appreciated assets, such as marketable securities, can provide greater financial benefits. Your clients may be eligible for a deduction based on the fair market value of the asset, and since we can sell these assets free from capital gains tax, more funds will be available for charitable grants.

Philanthropy should be an ongoing part of your client conversations throughout the year, not just during the holidays. The Community Foundation is here to help you and your clients develop thoughtful, impactful giving strategies. We’re committed to ensuring your clients can achieve both their financial and charitable goals through year-end giving and beyond.