As we head towards the end of the calendar year, your clients are increasingly focused on maximizing their charitable impact while navigating an evolving tax landscape. The following scenarios illustrate how we can partner with you to create giving solutions that address both philanthropic goals and tax planning objectives of your clients.
Scenario 1: Maximizing Tax Benefits Through Strategic Timing
The Challenge: Dr. Mary Smith, a 62-year-old physician, has faithfully supported local charities with annual contributions totaling $20,000. Despite her generosity, these gifts haven’t exceeded the standard deduction threshold, providing minimal tax benefit. With the One Big Beautiful Bill Act introducing additional limitations in 2026, her advisor recognized the need for a more strategic approach.
The Solution: By establishing a donor-advised fund at The Foundation for Delaware County with a $100,000 contribution of appreciated stock this December, Dr. Smith can itemize her 2025 deductions and secure significant tax savings. This “bunching” strategy allows her to maintain her $20,000 annual giving pattern over the next five years through grant recommendations, while avoiding both capital gains tax and the upcoming IRS floor and cap restrictions. The result: sustained philanthropy with optimized tax efficiency.
Scenario 2: Converting Concentration Risk into Charitable Capital
The Challenge: Jonathan Fraizer, a 58-year-old executive, held a concentrated position in a single stock accumulated over 20 years—creating both portfolio risk and a potential capital gains liability. His advisor discovered Jonathan had been making annual cash donations to charity, missing opportunities for greater tax efficiency.
The Solution: The Foundation worked with Jonathan’s advisor to establish a $250,000 donor-advised fund using his appreciated stock. This strategic move eliminated the capital gains exposure on the transferred shares while generating a full fair-market-value deduction. Jonathan can now recommend grants from his fund using pre-tax dollars rather than after-tax cash, transforming a concentrated risk into diversified charitable assets that will support his favorite causes for years to come.
Scenario 3: Transforming Unneeded RMDs into Lasting Legacy
The Challenge: Jane Gray, a 74-year-old retired novelist, receives sufficient royalty income to cover her expenses, making her Required Minimum Distributions (RMD) unnecessary for living costs. Her financial advisor needed to explore Qualified Charitable Distribution (QCD) strategies to help Jane optimize her tax situation while supporting causes she cares about.
The Solution: The Foundation team established a designated fund to receive Jane’s QCDs—up to $108,000 in 2025. This fund will provide perpetual support to the animal shelter where Jane has volunteered for decades. The QCD strategy excludes these distributions from Jane’s taxable income, satisfies her RMD requirements, and helps avoid Medicare IRMAA surcharges—advantages unavailable through traditional cash donations. Jane’s legacy of caring will continue long after her lifetime.
Partner with The Foundation for Delaware County
These scenarios demonstrate just a few ways we can collaborate to help your clients achieve their charitable objectives while maximizing tax benefits. As tax laws continue to evolve, our team stands ready to provide the expertise and flexibility your clients need to make meaningful community impact.
Contact Monika Collins to discuss how we can tailor these strategies to your clients’ specific situations. Together, we can ensure their generosity creates lasting change in Delaware County while achieving their financial planning goals.
