Why Donor Advised Funds are Still Essential in 2026 – and 3 Simple Steps to Open One

by Nicolette Lewis, JD

For many CPAs, estate planning attorneys, and financial advisors, the end of 2025 brought a whirlwind of charitable planning activity among high-earner clients. That’s because many taxpayers wanted to maximize the tax benefits of their charitable donations before the 0.5% “floor” and 35% “cap” on charitable deductions kicked in on January 1, 2026 under new tax laws. Donor advised funds in particular played a big role in many late-2025 planning strategies.

So what now? Should you still recommend that your clients establish and use donor advised funds at the community foundation to organize their charitable giving?

Absolutely yes! Donor advised funds remain a highly relevant and strategic tool for your clients. The IRS’s new deductibility limits may reduce the marginal tax benefit of giving for some of your clients, but nothing has changed about the donor advised fund’s broader planning advantages for all of your charitable clients. When you work with the community foundation, you can confidently recommend a donor advised fund because you know the client will receive administrative simplicity, top-notch service, and plenty of opportunities for deep community connections and multigenerational philanthropy.

3 Simple Steps to Get Started

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Step 1: Determine a Succession Plan with Your Client

Start by discussing with your client who will manage the fund, or what nonprofits or causes they would like to support, if and when they are no longer in a position to recommend grants, either during or after their lifetime. This ensures continuity and peace of mind. Note: the succession plan can always be added later or changed at any point in time.  

Step 2: Fill Out the Fund Agreement with the Help of Our Team

Complete the fund agreement with your client or reach out to our team to fill one out for you, outlining the terms and fund details. You can access the Community Foundation’s Donor Advised Fund agreement here. Our team will need to review the fund agreement prior to signatures; we can send it out for e-signatures or your client can sign and return it after approval.  

Step 3: Determine the First Contribution Type & Send It Over!

Decide the type of initial contribution your client wants to give. Options include cash, appreciated stock, business interests, or other assets that align with your client’s financial and philanthropic strategy. Community Foundation Tampa Bay accepts a wide range of non-cash gift types and will work with you and your client to meet their goals. Your client can make the contribution directly—or you can make it on their behalf—to officially fund the DAF via check, wire, ACH, or online. View our cash and security transfer instructions here. And just like that, you have successfully opened a DAF at the Community Foundation on behalf of your client, in three simple steps. ‍

A Win-Win for You and Your Clients: Consider Our IMCA Program

For advisors who wish to continue managing the investment of the fund, our Individually Managed Charitable Account (IMCA) program allows you to maintain a hands-on role while your client enjoys the benefits of a donoradvised fund.

To learn more about how the Community Foundation can support your clients’ charitable giving strategies, please contact Nicolette Lewis, JD, Associate Counsel, Philanthropic Giving, at nlewis@cftampabay.org or (813) 609-4855.

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