April 15 has been etched firmly in the minds of both taxpayers and their advisors. Attorneys, CPAs,
and financial advisors know that tax season is when many clients start paying closer attention to the rules and how they might have changed since the year before, including rules for charitable deductions.
Especially in light of the tax law changes that took effect on January 1, now is the time to understand clients’ philanthropic intentions for 2026 if you don’t already. Addressing charitable planning at tax time can help ensure that your clients won’t miss out on important opportunities. Here are three ways to do that:
Here’s a typical scenario: Your client, who enjoys giving to favorite charities, is 75 years old.
Here’s the tip: Talk with your client as soon as possible about Qualified Charitable Distributions. IRA owners who are 70 ½ and older are eligible to use their IRAs to distribute up to $111,000 in 2026 (indexed for inflation) directly to a qualified public charity, including some types of funds at Hudson Community Foundation. QCDs can satisfy all or part of a client’s RMD.
What’s important to know right now: Planning QCDs early in the year helps avoid administrative delays and ensures proper coordination with RMD requirements. For clients who do not itemize deductions—especially in light of the continued higher standard deduction amounts—QCDs remain one of the most tax-efficient ways to give.
Here’s a typical scenario: Your client is beginning to explore exit strategies for a family business.
Here’s the tip: Contact Hudson Community Foundation early in the planning process. Gifting closely held business interests to a donor-advised fund at the foundation prior to a sale can be a powerful planning strategy. The client may receive a charitable income tax deduction (generally equal to the fair market value of the gifted interest if it is long-term capital gain property, subject to AGI limitations). The gifted portion of the business may avoid capital gains tax when a sale occurs down the road, maximizing proceeds flowing into the donor-advised fund to support the client’s philanthropic goals.
What’s super important to know right now: Timing is critical. If a sale is already effectively in motion or if there is a binding agreement in place the IRS may challenge the charitable deduction under the assignment of income doctrine. Early coordination among legal, tax, and philanthropic advisors is essential.
Here’s a typical scenario: A client who itemizes income tax deductions experienced significant portfolio gains in 2025 and anticipates continued market strength in 2026.
Here’s the tip: Consider recommending that your client make a gift of appreciated stock to a donor-advised fund at Hudson Community Foundation. Gifts of long-term appreciated assets to a donor-advised fund are generally deductible at fair market value (subject to 30% of AGI limitations for appreciated assets, as well as the floor and cap that took effect on January 1, 2026). The donor-advised fund can sell the asset without incurring capital gains tax.
What’s super important to know right now: Pay particular attention to the rules that apply to clients who itemize their deductions versus those who don’t. Beginning with the 2026 tax year, non-itemizers are eligible to deduct cash gifts (not gifts of stock or other assets) to public charities (excluding donor-advised funds) up to $1000 for single filers and $2000 for joint filers.
As always, our goal at Hudson Community Foundation is to serve as your first choice on all matters related to charitable giving as you or your advisor structure tax, estate, retirement, or business planning strategies. We look forward to working together during tax season and beyond!
The team at the HCF looks forward to working with you and your clients to establish or add to their current fund and create charitable legacies. Give us a call!
Read more about Donors Guide to Donor Advised Funds.
With a fund at Hudson Community Foundation (HCF), advisors can manage the charitable assets on their preferred platform at any amount. Assets stay under your management. You can provide your clients with the consistent investment advice they expect. We are your partner in charitable giving!
The team at HCF is a resource as you serve your philanthropic clients. We understand the charitable side and are happy to serve as a secondary source as you manage the primary relationship with your clients. This blog is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.
