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Are Donor Advised Funds Still Needed After 2025?

As 2025 came to a close, many CPAs, estate planning attorneys, and financial advisors saw a rush of charitable planning among high-income clients. With the new federal limits for 2026, which include a 0.5% floor and a 35% cap on charitable deductions, a lot of donors acted quickly before rules changed. Donor-advised funds became a key strategy during this period. Clients could contribute assets before year-end, capture the most favorable tax treatment available, and then take their time recommending grants to charitable organizations in future years.

Now that the dust has settled, advisors are understandably reassessing. Is there still a strong case for donor-advised funds?

Do Donor-Advised Funds Still Matter?

The short answer is yes. Tax incentives can be a good conversation starter, but they’re usually not the real reason clients are giving. Their philanthropy drives them to secure a legacy that matches their values and supports the causes they care about. And those motivations don’t change because the tax code does.

Even under the new rules, donor-advised funds provide structure and clarity for charitable giving. They give clients a dedicated place to organize their philanthropy, track their impact, and approach giving with intention rather than reacting year by year.

Flexibility That Supports Long-Term Planning

One of the most enduring advantages of a donor-advised fund is flexibility. Clients can still separate the timing of their charitable contribution from the timing of their grants, which is especially helpful in a higher-income year or one with a lot of transitions and liquidity. Even if deductions are partially limited, the ability to plan ahead and smooth giving over time remains a powerful planning benefit.

Donor-advised funds also adapt easily to a client’s financial circumstances. If income fluctuates and priorities shift, the fund is a steady way to make charitable decisions.

The Community Foundation Advantage

Donor-advised funds through community foundations are convenient, but the actual benefit is in the relationships they foster. That includes connections to local non-profit organizations and a broader understanding of what the community needs. This helps clients move from general charitable intent to targeted, impactful giving that reflects what is actually happening on the ground.

For advisors, this is just another way to add value to the client relationship. You can recommend a donor-advised fund and know that your client gets the same service and stewardship they’re used to, plus the connections.

Support Client Goals with AACF

Just like they always have, donor-advised funds support broader wealth and estate planning objectives. They make it easier to integrate charitable giving into a client’s long-term plan and continue their legacy for generations.

Now that the rush of 2025’s changes has ended, it’s time to help clients keep up their momentum. Athens Area Community Foundation works closely with advisors to design strategies based on both personal values and a meaningful community impact, and we’re ready to help.