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Serving Charitable Clients Across Every Stage of Wealth

Advisors are used to the world of charitable giving changing, but something interesting is happening now. It’s changing in two distinct directions at one time.

High-net-worth people are becoming a larger share of overall giving than they have been in the past. But on the other side of the spectrum, policy changes are encouraging more participation from young people and newer donors. So how do you tackle both at once?

What’s important for advisors is to have a strategy that can fit both groups and meet them where they are.

How Donors Have Split

The divide isn’t just a feeling – recent research has shown that it’s becoming more and more pronounced. Very high-net-worth donors are responsible for a larger and larger portion of total charitable giving, in part because they make large strategic gifts to get tax benefits.

At the same time, new tax provisions—such as the charitable deduction for non-itemizers—are encouraging broader participation. This creates an entry point for individuals who may not have previously considered philanthropy as part of their financial plan.

This leaves us with a charitable landscape that is more inclusive, but also a lot more concentrated. Larger gifts drive most major initiatives, but you also need to focus on these smaller contributions that introduce new donors to the habit of giving.

Planning for Ultra-High-Net-Worth Clients

For high-net-worth clients, charitable giving is rarely a one-time decision. Instead, it is often integrated into broader conversations about estate planning, business succession, and family legacy.

These clients tend to focus on long-term impact. They may be evaluating complex assets, considering the timing of gifts, or exploring ways to involve future generations. Philanthropy becomes part of their identity and values—not just a financial decision.

This is where a community foundation can play a meaningful role. With flexible giving structures and deep local insight, advisors can help clients align their charitable goals with broader planning strategies. Just as important, these conversations often open the door to engaging children and grandchildren in philanthropy, creating a lasting legacy.

Supporting Emerging and Next-Generation Donors

Clients who are earlier in their financial journey approach giving differently. For them, philanthropy is often more exploratory. They may still be identifying causes they care about or figuring out how charitable giving fits alongside other priorities.

For these people who don’t itemize deductions, a charitable deduction is usually a good starting point. It lets them see the benefits of giving without requiring them to itemize, so the barrier to entry is lower.

Even modest gifts can have a meaningful impact over time. More importantly, they help establish habits. Many of these individuals—including the next generation of high-net-worth families—are laying the groundwork for lifelong engagement in philanthropy.

It’s worth noting that this deduction currently applies only to cash gifts and does not extend to donor advised funds, which may shape how advisors structure early conversations.

A Key Opportunity: Qualified Charitable Distributions

There is one additional group that deserves close attention: clients age 70½ and older who hold IRAs. Qualified Charitable Distributions (QCDs) remain one of the most effective tax-advantaged giving strategies available.

In 2026, clients can transfer up to $111,000 per taxpayer directly from their IRA to support charitable causes. These distributions can satisfy required minimum distributions while avoiding taxable income—a compelling benefit for many retirees.

While QCDs cannot currently be used to fund donor advised funds, they can support field-of-interest funds, unrestricted funds, and certain other charitable vehicles at a community foundation. Proposed legislation may expand these options in the future, making this an area worth watching.

Meeting Clients Where They Are

The most effective advisors recognize that these two donor groups are not simply separated by wealth, but by timelines and their incentives.

A community foundation can support both ends of this spectrum. Whether your client is navigating complex charitable planning or taking their first steps into giving, having the right partner in place can make all the difference.