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Retirement assets are becoming an increasingly important part of charitable planning. Americans hold more than $50 trillion in retirement accounts—nearly $20 trillion of which are held in IRAs. Meanwhile, the Great Wealth Transfer is underway, with more than $120 trillion expected to change hands over the coming decades.

In light of these trends, it is especially important for estate planning attorneys, CPAs, and financial advisors to remind clients that IRAs in particular offer two distinct charitable planning opportunities. 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

You’re likely well aware that 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 San Angelo Area 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

You know quite well that a client can name a charity (including a donor-advised fund at the San Angelo Area 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 this should not be a one-and-done 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, consider making two questions a regular part of conversations 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?

Keep your eyes on 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 of course could be very useful to expand charitable giving options if enacted. 

As always, please reach out to the San Angelo Area Foundation anytime you encounter the topic of QCDs, retirement plan legacy gifts to charity, or any other issue involving charitable giving. We are here for you! 

It’s November! You are well aware of the calendar, of course, and so are your clients. You’ve also likely already begun reminding clients about year-end tax deadlines and important loose ends to tie up before 2027 hits. Remember, though, that memories are short, and just because you’ve already mentioned year-end deadlines doesn’t mean you should stop reminding your clients. Clients appreciate knowing that you are on top of their estate planning, tax planning, and financial planning priorities. 

When it comes to charitable giving reminders, the San Angelo Area Foundation is here to help! Reminders are especially important 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 is a checklist of five important items to include in your client conversations as you help clients prepare for December 31 deadlines.

Client 70½ or older? Ask about QCDs. Always.

We’ve said it before and we’ll say it again! 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 San Angelo Area Foundation may qualify.

Much ado about bunching.

As you work with clients who regularly support favorite charities, it’s crucial to revisit a technique called “bunching.” 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 San Angelo Area 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 San Angelo Area Foundation or to other charities, encourage them to stop and think and check with you first! 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 San Angelo Area 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—and that's precisely why it is a good time to start the conversation. The San Angelo Area Foundation 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! 

Don't overlook the new deduction for your clients who do not itemize their deductions. 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 is worth mentioning! 

Think long-term.

Certainly, during the last quarter of every year your focus is likely on helping clients meet the December 31 deadline for various tax planning and charitable giving strategies. But don’t stop there! This is also a great time to do a quick check-in on your clients’ long-term charitable plans. Has the client already provided for a charity such as the San Angelo Area Foundation, or a fund at the San Angelo Area 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? Your clients are in a “get it done” mode anyway, so now is a good opportunity to make sure their charitable intentions are accurately reflected in an estate plan.

As you address year-end planning priorities with your clients, please reach out to the San Angelo Area Foundation. We are honored to serve as your clients’ home for charitable giving—and grateful to be your first call when matters of philanthropy arise in your work. Thank you! 

If you advise charitable clients in your practice, you are no stranger to the IRS’s requirements for substantiating charitable deductions.

In some cases, however, tax advisors and their clients are so focused on valuing the gift and filing the Form 8283 that they overlook the requirement for a “contemporaneous written acknowledgment.” And this can derail the deduction! It sure was for the taxpayers in Wells v. Commissioner, T.C. Memo. 2026-49, involving a claimed charitable deduction carryover stemming from a gift of Mississippi real estate to a nonprofit organization.

The property had been appraised at $4.42 million. And there was plenty of documentation surrounding the gift. The taxpayers had an appraisal. The property was transferred by deed. The charity's president sent a letter thanking the donors and referencing the property's appraised value. The taxpayers also filed a Form 8283.

So what went wrong?

The charity's acknowledgment letter did not state whether the organization had provided any goods or services in exchange for the contribution. You know the rule:

A donor claiming a deduction of $250 or more is also required to obtain and keep a contemporaneous written acknowledgment for a charitable contribution. To be contemporaneous, the written acknowledgment must generally be obtained by the donor no later than the date the donor files the return for the year the contribution is made. The written acknowledgment must state whether the donee provides any goods or services in consideration for the contribution.

Specifically, Internal Revenue Code Section 170(f)(8)(C) requires the donor to obtain the acknowledgment by the earlier of (1) the date the donor actually files the tax return for the year of the gift or (2) the return's due date, including extensions.

In the Wells case, the contemporaneous written acknowledgment was missing a critical required statement. Although the taxpayers argued that their various documents, considered together, were enough to substantiate the contribution, the Tax Court disagreed. The statutory acknowledgment requirement had not been satisfied, and the charitable deduction carryovers were disallowed.

For advisors, Wells is a valuable reminder that the mechanics of charitable giving deserve just as much attention as the strategy. This is especially important when clients are giving real estate, closely held business interests, or other noncash assets where the deductions can be substantial and additional substantiation requirements may apply.

When you're helping a client make a significant charitable gift, don't assume that a deed, appraisal, Form 8283, or friendly thank-you letter necessarily checks every box. Make sure the client is paying close attention to the specific documentation requirements—and involve the charitable organization early enough to correct any problems before the applicable deadline.

The defect in Wells was fixable, but only if someone had caught it in time. Again, Internal Revenue Code Section 170(f)(8)(C) says that the donor must obtain a compliant acknowledgment by the earlier of (1) the date the donor actually files the tax return for the year of the gift or (2) the return's due date, including extensions.

So imagine that Wells's tax advisors had reviewed the charitable-gift file while preparing the 2016 return and noticed that the nonprofit's letter didn't say whether goods or services had been provided in exchange for the property. The solution to this particular problem may have been straightforward: contact the nonprofit and obtain a corrected or supplemental written acknowledgment containing the missing statement before filing the return.

As always, the San Angelo Area Foundation is happy to let you know about tax rulings and updates that offer insight into charitable planning techniques. We are also happy to serve as a sounding board as you work with clients on charitable giving strategies, including gifts of complex assets into a client’s donor-advised or other type of fund. We look forward to our next conversation!

Every day, the San Angelo Area Foundation works with attorneys, CPAs, and financial advisors to help clients support the charities and causes they care about. Often, those conversations involve gifts of appreciated noncash assets—and this is great because of the potential tax benefits. Appreciated stock may be the first noncash asset that comes to mind, but a client’s portfolio can include many other types of investments that deserve a closer look when charitable giving is part of the plan.

Government securities are a good example. Although clients may think of these investments as a single asset category, “government securities” actually encompasses a surprisingly broad range of holdings, including Treasury bills (T-bills), Treasury notes, Treasury bonds, Treasury Inflation-Protected Securities (TIPS), Series EE and Series I savings bonds, and securities issued by federal agencies and government-sponsored enterprises.

Why does that matter for charitable planning? It matters because not all government securities are created equal where charitable giving is concerned. Here are a few points to keep in mind:

—Government securities can differ significantly in how they generate income, whether they are marketable or transferable, how they are valued, and how their interest or appreciation is taxed. As a result, a charitable strategy that works for one type of government security may not work for another. And even when a government security can be transferred directly to charity, the tax results may be quite different from those associated with the more familiar gift of appreciated stock.

—This dynamic is especially striking when comparing marketable Treasury securities, which may be transferable to charity, with savings bonds, which present very different transfer and income tax issues and may be more interesting in estate planning than as lifetime charitable gifts. 

—Marketable Treasury securities may be used for charitable giving, but advisors will want to look carefully at the particular security before recommending a strategy. Transfer and charitable acceptance considerations come into play, as do valuation and tax considerations. The security’s holding period, basis, fair market value, and the character of its return can all be relevant because Treasury securities may generate interest or original issue discount rather than the long-term capital appreciation that makes gifts of highly appreciated stock such a familiar charitable planning technique.

—Savings bonds present an even more distinctive situation. Unlike appreciated stock, savings bonds generally are not well suited to a straightforward lifetime charitable gift because transferring the bonds may trigger recognition of previously deferred interest.. Series EE and Series I savings bonds accumulate interest that is subject to federal income tax, and many owners defer reporting that interest until the bonds are redeemed or mature. If a client simply cashes in savings bonds during life and then contributes the proceeds to charity, the client generally recognizes the accumulated interest. In other words, the strategy does not offer the same tax advantage that may be available when a client contributes appreciated publicly traded stock directly to charity. 

—This does not mean savings bonds should be ignored in charitable planning. Quite the opposite: They may be especially interesting in the overall context of a client’s estate plan. This is because accumulated interest on savings bonds can constitute income in respect of a decedent, or IRD. That means leaving savings bonds to individual beneficiaries can carry an income tax consequence in addition to transferring the underlying asset. That IRD characteristic can make savings bonds worth considering in charitable estate planning because a qualified charitable organization generally is not subject to federal income tax on income it receives in furtherance of its exempt purposes. For a client who has held savings bonds for many years, this creates a good reason to identify those assets during the estate planning process and consider whether they may be better suited for charitable purposes than other assets the client intends to leave to family members.

The larger lesson is one advisors encounter frequently in charitable planning: The asset matters! Two investments that look similar on a client’s balance sheet can produce very different tax and charitable planning results.

For all of these reasons and more, the San Angelo Area Foundation team welcomes a call early in the process. If your client owns Treasury securities, savings bonds, or other noncash assets and has charitable intentions, please reach out before the client takes action. We are happy to work alongside you to explore whether the asset can be accepted, how a potential gift might be structured, and how the San Angelo Area Foundation can help your client achieve charitable goals while you and the client’s other advisors address the legal, tax, and financial considerations. 

The San Angelo Area Foundation team is happy to keep an eye out for what’s trending in the field of charitable planning, especially developments that impact your work with your charitable clients and how those clients tap into tools and resources at the San Angelo Area Foundation.  Check out these six articles that have caught our attention recently.

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. Remember, the San Angelo Area Foundation offers a wide range of fund types and charitable planning structures to help your clients establish a lifetime and legacy giving plan tailored to 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. And of course, the San Angelo Area Foundation offers donor-advised funds as part of its broad menu of charitable giving vehicles. 

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. The San Angelo Area Foundation’s deep knowledge of local needs and nonprofits is an invaluable resource to you and your clients whether they are younger, older, newly wealthy, or well-established. 

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—all of which are inspirational and aspirational to our San Angelo Area Foundation team and the advisors and donors we work with! 

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. As always, reach out to the San Angelo Area Foundation 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. As always, the San Angelo Area Foundation 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 here? As you skim these articles, or even just the headlines, a pattern emerges pretty quickly! 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 is about helping clients make thoughtful decisions about what to give, when to give it, and what they hope their generosity will accomplish. 

The San Angelo Area Foundation team is here as a sounding board whenever those conversations arise. Please reach out anytime!

In 2008, the U.S. House of Representatives adopted a resolution supporting the designation of National Estate Planning Awareness Week, observed each October. You’ve likely heard of this, and you may know that October 19 through 25 is the week in 2026. Chances are, though, you’ve not recently (or ever) looked at the actual resolution. The preamble outlines several reasons why estate planning deserves this annual spotlight. Here are three worth noting:

— “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 remind yourself to ask each client a question that can open an important dialogue 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’s room 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 San Angelo Area 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 deepen your understanding of 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. A smart next step in the conversation is to suggest that you involve the San Angelo Area Foundation team as a sounding board. Our experienced professionals are here to help you and your client review giving vehicles and approaches that align with the client’s intentions while you continue to guide the overall legal, tax, and financial planning.

As an attorney, CPA, or financial advisor, you’re well aware that your clients are typically better off from a tax perspective if they donate to charity by giving appreciated stock held for more than one year instead of writing a check. That’s because the client’s charitable deduction is calculated based on the stock’s fair market value, and the charity (unlike your client) can sell the stock without triggering capital gains tax. Indeed, many of your clients regularly give appreciated stock to their donor-advised funds at the San Angelo Area 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 San Angelo Area 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 San Angelo Area 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 San Angelo Area 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, but for larger gifts—or during periods of market volatility—it can become meaningful.

And again, yes, you know this! 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 the San Angelo Area Foundation whenever timing is critical, such as at year end.

Fortunately, the San Angelo Area Foundation works with gifts of appreciated securities every day and can help facilitate smooth transfers. 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 the San Angelo Area Foundation team anytime, and especially when a client is getting ready to transfer stock. We will keep an eye out for it and make sure the processing goes smoothly. Thank you for the opportunity to work with you to serve your clients! 

For many attorneys, CPAs, and financial advisors, the last weeks of summer mark the beginning of year-end planning season. As clients return from vacations and turn their attention to tax and financial planning, it's an ideal time to revisit charitable giving strategies that could be important to help clients achieve their 2026 planning objectives.

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 San Angelo Area 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 the San Angelo Area Foundation team—can help clients evaluate whether this strategy aligns with both their philanthropic objectives and their broader financial plans and then implement the strategy without rushing through it.

Bunching is not the only technique to be aware of 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 San Angelo Area 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. 

The San Angelo Area Foundation is honored to work alongside you and other advisors 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. Reach out anytime to get a jump on year-end planning! 

At the San Angelo Area Foundation our team keeps an eye out for helpful sources and reading material to help you more easily stay up-to-date on trends and techniques for advising your charitable clients.

Four recent articles make 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. That’s why advisors should add deeper questions about values, purpose, and legacy, which naturally leads 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. In other words, this creates a big opportunity for advisors who are proactively talking about charitable giving with their clients.

If you skim these articles you will see immediately that a pattern is emerging! Clients don't simply want to save taxes—they want their wealth to reflect what matters most to them. The team at the community foundation is here as a sounding board to help you begin charitable planning conversations early. Please reach out anytime!

At the San Angelo Area Foundation, we are honored to work with many individuals, families, and businesses who support the causes that matter most to them and help make our entire community a better place to live. In many cases, trusted professional advisors, including attorneys, CPAs, and financial advisors, are helping donors make important decisions about taxes, investments, estate planning, and family wealth. 

All of this is wonderful! There’s one more step, however, that is often overlooked: Connecting the dots. If you are a donor or have a fund at the San Angelo Area Foundation, or plan to establish a fund in the near future, please consider introducing your advisors to our team. A simple introduction can make a tremendous difference in ultimately achieving your charitable goals.  

Here’s why:

• Attorneys, CPAs, and wealth managers are experts in many aspects of financial and estate planning, and their work is essential in helping you develop and implement strategies through legal documentation, tax filings, and other technical guidance. Our expertise can be a missing link in the charitable giving. 
   
• The San Angelo Area Foundation, brings to the table specialized knowledge about charitable giving strategies, local nonprofit needs, philanthropic tools that may be best suited for your particular situation, and the types of assets you might consider giving to achieve your goals.
  
  
• The San Angelo Area Foundation certainly does not offer legal, tax, or financial advice, but we absolutely stay current on legal, tax, and charitable developments. In turn, we can keep you and your advisors informed about which trends to watch. 
  
  
• When you establish a fund at the San Angelo Area Foundation as part of your charitable plan, our team will handle the paperwork and administration to create and manage that fund. This is often a relief to your advisors, not to mention a relief to you! 

In many cases, donors discover giving opportunities they might not otherwise have considered. What’s more, many advisors appreciate having philanthropic partners available to help explore charitable strategies that benefit both the donor and the causes they care about.

So what can you do? We invite and encourage you to take the lead! A simple email introducing each of your advisors to the San Angelo Area Foundation team is often all that is required to open the door to better communication and stronger planning. We are always happy to join a conversation with you and your advisors. 

When professionals work together, the result is often a more coordinated and impactful charitable plan. By connecting your advisors with us, you help create a team that can support both your financial goals and your desire to make a lasting difference. We look forward to hearing from you—and meeting your advisors! Thank you for all you do to make our community a better place.