Keep an eye on developing news in the philanthropic sector, including the Charitable Act, which would expand charitable deductions to non-itemizers and recent IRS rulings affecting supporting organizations. Also, talk to your clients about the benefits of establishing a Field of Interest or Designated Fund at the Community Foundation to focus charitable support on a particular area of need and take advantage of Qualified Charitable Distributions (QCDs). 

Many eyes are on the Charitable Act, which, if passed, would allow for deductible charitable contributions that exceed the standard deduction. The Charitable Act proposes to restore the pandemic-era “universal charitable deduction” and raise the cap from $300 for individuals ($600 for joint filers) to approximately $4,600 for individuals ($9,200 for joint filers).

Some advisors have been watching the regulations surrounding Type I and Type III supporting organizations. If you are dealing with these vehicles in your practice, be sure to stay up to date on the latest IRS regulations.

Finally, for clients who are passionate about any issue—be sure to encourage them to learn more about establishing a Designated Fund or Field of Interest Fund at the Community Foundation to support highly targeted areas of relief, and, for those clients who are over 70½, serve as recipients of QCDs from IRAs.