Research and survey results tell us that many people’s most consequential estate and financial planning activities arise not from long-term intentions, but from sudden change. Moments like this are challenging because most people are often overwhelmed and unsure how to proceed, and even the best advice can feel like too much information delivered too soon. In these situations, be aware that charitable planning can help re-anchor your decision-making in values rather than fear or urgency. For many people, generosity is one of the few topics that still feels familiar when everything else is shifting.
Here are three examples:
Change in assets
Following a divorce settlement, a person may suddenly be holding cash, concentrated stock, or other highly appreciated assets. You may also be juggling other priorities: adjusting lifestyle expectations, supporting adult children, and rethinking an estate plan. When you also want to do something charitable but aren’t sure yet what organizations to support, setting up a donor-advised fund at the Community Foundation can be a natural fit in some cases, allowing yourself to be eligible for a tax deduction when the contribution is made, while taking time to decide which charities to support and when.
Loss of a spouse
A person whose spouse has recently passed away may want to make a charitable gift in the spouse’s memory, but likes the idea that the gift could benefit the community for many generations and address urgent needs that arise decades from now. Setting up an unrestricted fund at the Community Foundation allows you to support evolving community needs over time as well as support the mission of the Community Foundation itself.
Retirement
If you are a 74-year-old who just retired is feeling less “relevant” outside of the workforce and therefore would like to do something meaningful for the community. With plenty of assets in retirement accounts, you do not need to rely on distributions from IRAs to maintain lifestyle standards. This person could be a good candidate to establish a designated fund (to support a specific nonprofit organization) or a field-of-interest fund (to support an area of need such as education, health care, or the arts) at the Community Foundation. Then, you may direct Qualified Charitable Distributions from IRAs (up to $111,000 per taxpayer in 2026) to the fund, bypassing adjusted gross income and counting toward required minimum distributions.
The team at the Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.