Serving charitable clients: Dual strategies emerge

by Sheila Kinman, CAP®, Chief Philanthropy Officer

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As tax laws and market dynamics continue to shift, it is important for attorneys, CPAs, and financial advisors to be aware of two increasingly distinct groups of donors. On one hand, the high federal estate tax exemption and new restrictions on itemizing charitable deductions are creating unique needs for your clients whose assets exceed $30 million. On the other hand, the new charitable deduction for non-itemizers offers an entry point and incentive for your clients who are early in their careers or still building wealth.

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Recent research underscores how pronounced this divide is becoming. Individuals with a net worth of $30 million or more—often referred to as ultra-high-net-worth donors—are playing an increasingly significant role in philanthropy and accounting for a growing share of total charitable giving. At the same time, policy changes are encouraging broader participation at the other end of the spectrum, bringing new donors into philanthropy even if their initial gifts are modest. The result is a philanthropic landscape that is simultaneously becoming more concentrated and more expansive.

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For ultra-high-net-worth clients, charitable giving is rarely about a single transaction. Instead, it is often deeply integrated into long-term planning around wealth transfer, business succession, and family legacy. These clients may be evaluating complex assets, timing considerations, and multigenerational involvement. Conversations often focus on strategy and how philanthropy aligns with identity, values, and long-term community impact. Community Foundation Tampa Bay can help guide these discussions by offering flexible structures, local insight, and support for engaging the next generation in meaningful ways.

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By contrast, clients earlier in their wealth-building years—including the children and grandchildren of ultra-high-net-worth clients—may approach charitable giving in a more incremental and exploratory way. The availability of a charitable deduction for non-itemizers creates a new opportunity to introduce philanthropy as part of their financial lives sooner than in the past. For these clients, the focus is often on establishing habits, identifying causes, and understanding how giving fits alongside other priorities. Even relatively small gifts can become the foundation for lifelong philanthropic engagement. (Note that the new deduction for non-itemizers applies only to cash gifts and is not available for gifts to donor-advised funds.)  

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These two groups are not simply separated by wealth. They are often operating under different incentives, planning horizons, and motivations. As a trusted advisor, recognizing these distinctions can help you tailor conversations and provide meaningful guidance. Some clients may benefit from sophisticated planning strategies, while others may simply need a clear and accessible starting point.

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Here is one final but important point: Regardless of whether a client itemizes or does not itemize, pay close attention to clients who are age 70 ½ and older and who own IRAs. Qualified Charitable Distributions are a powerful and tax-advantaged tool that allows clients to transfer up to $111,000 per taxpayer (2026 limit) to support causes they care about most. In addition, proposed legislation may eventually allow clients to use QCDs to fund their donor-advised funds at the Community Foundation. Currently, clients can use QCDs to support field-of-interest funds, unrestricted funds, and certain other types of funds at the Community Foundation, but not donor-advised funds.    

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As always, the Community Foundation is here to support individuals and families across every stage of their philanthropic journey. Whether your client is structuring a complex gift involving closely held assets or taking the first steps toward organized charitable giving, our team can help you identify an approach that aligns with their goals and values.

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Sheila Kinman, CAP® serves as Chief Philanthropy Officer at Community Foundation Tampa Bay. A seasoned expert in providing philanthropic solutions, she is dedicated to facilitating the joy of giving for donors. Sheila specializes in helping individuals, private foundations, nonprofits, and corporations direct their charitable giving in impactful and financially strategic ways. Her expertise also includes facilitating unique, non-cash gifts, such as donations of closely held business interests and real estate.

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