by Nicolette Lewis, J.D.
For many attorneys, CPAs, and financial advisors, the tax law changes under the One Big Beautiful Bill Act are already familiar. That is not necessarily the case for many of your clients. While you’ve been busy reading articles and evaluating how the changes may affect planning strategies, many clients are just beginning to learn about them, especially as these issues have become more relevant during tax season. Even if you have been discussing the changes with clients for months, keep the conversation going. For many clients, now may be the first time they are truly paying attention.
Here are three things to know:
— Mainstream media is increasing its coverage of charitable planning strategies. For example, the Wall Street Journal recently published an article about donor advised funds as a tool for tax savings and community impact. Many clients may not realize that Community Foundation Tampa Bay offers donor-advised funds, along with other options for structuring a charitable giving plan to support their favorite causes and address critical community needs. Be sure to reach out to the Community Foundation whenever a client asks about setting up a donor advised fund.
—Thoughtful planning is especially important in light of the new floor on itemized charitable deductions. Starting in 2026, to be eligible for a deduction, a client’s qualified deductions must exceed 0.5% of adjusted gross income, essentially raising the threshold at which charitable giving produces a tax benefit. This could make it advantageous for some of your clients to “bunch” charitable contributions through a donor advised fund, allowing the client to front-load donations into a single tax year to cross the threshold.
—At the same time, under a “cap” provision in the new law, if a client is in the 37% federal income tax bracket, itemized charitable deductions are now capped at the 35% tax rate. In simplified terms, depending on other factors, this means that if a client donates $10,000, the tax break would be $3,500 instead of $3,700. In short, the floor and the cap add extra complexity to helping clients plan their charitable contributions.
—The new tax laws have changed the landscape for not only your clients who itemize deductions but also for those who do not itemize. Non-itemizers are now eligible for an “above the line” deduction of $1,000 for single filers and $2,000 for joint filers. Be aware, however, that the new deduction for non-itemizers does not apply to noncash gifts or gifts to donor-advised funds. Because both noncash gifts and gifts to donor advised funds are important tax planning tools for many clients, this limitation is worth noting in your discussions.
—Finally, remember that donating appreciated stock held for more than one year is usually more tax-efficient than writing a check. That’s because it allows your client to avoid capital gains tax on the appreciation. What’s more, clients who itemize deductions will be eligible to claim a tax deduction for the full fair market value.
We know the new tax laws add another layer of complexity to your work, and the Community Foundation team is happy to point you in the right direction as you conduct research and offer counsel to your clients. And remember, you don’t have to jump headfirst into the complexity during your client discussions. Even talking about philanthropy in the simplest terms can help strengthen your client relationships and grow your practice.
Nicolette Lewis, J.D., is Associate Counsel, Philanthropic Giving at Community Foundation Tampa Bay. She combines her legal background with her passion for nonprofits to provide donors, fundholders, and professional advisors with comprehensive giving experience. She can be reached by phone at (813) 609-4855 or via email at nlewis@cftampabay.org.
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