Charitable planning is often most effective when aligned with key financial decision points. As advisors navigate evolving tax rules and client goals, philanthropy can present opportunities to enhance both tax efficiency and long-term planning strategies.
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How Tax Changes May Influence Charitable Planning
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Several provisions affecting charitable deductions took effect in 2026, including a higher standard deduction, updated AGI thresholds, and an increased SALT cap.
These changes may influence when donors itemize and how they time charitable contributions.
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Advisor Takeaway: DAFs can help clients coordinate larger gifts in years when itemization is beneficial while maintaining consistent support for charities over time.
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Noncash Giving Continues to Drive Contributions
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Many DAF contributions come from noncash assets, often creating meaningful tax advantages for donors. In 2025, NPT donors contributed:
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- $18.42B in total contributions
- 74.6% from publicly traded securities and complex assets
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Noncash assets continue to represent the majority of DAF funding.
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Advisor takeaway: Noncash contributions aren't just common — they're often the entry point into charitable planning conversations.
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IN THE FIELD: QUESTIONS BEING ASKED
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Can a DAF receive a Qualified Charitable Distribution (QCD)?
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Short answer: No.
While there has been some policy discussion around whether this rule could change in the future, current law does not allow QCDs to be directed to DAFs.
When each approach may make sense:
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QCDs can be effective for donors age 70½+ who want to direct required minimum distributions to charity while keeping the distribution out of taxable income.
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DAFs are often funded with appreciated securities or other assets, creating a charitable reserve that can support grantmaking over time. Many donors use both: DAFs during peak earning years and QCDs in retirement.
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Philanthropy Beyond Wealth Transfer
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A recent InvestmentNews article highlights how philanthropy can help families pass on values — not just assets — across generations. Structured giving strategies can create opportunities to engage heirs and strengthen long-term client relationships.
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Our mailing address is:
National Philanthropic Trust
165 Township Line Road, Suite 1200
Jenkintown, PA 19046
nptrust.org
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