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With the new charitable deduction 0.5 percent floor and 35 percent cap taking effect Jan. 1, 2026, many taxpayers accelerated giving to preserve optimal tax outcomes.

Donor advised funds (DAFs) played a central role in those strategies. Clients were able to contribute assets in 2025, secure the charitable deduction under prior rules and then thoughtfully recommend grants to their favorite charities in 2026 and beyond.

So, what now? Should DAFs still be part of your charitable planning toolkit?

Absolutely.

While the new deductibility limits may reduce the marginal tax benefit for some clients, nothing has changed about the broader planning advantages that DAFs bring. They remain one of the most flexible, effective and values-aligned tools available for charitable clients, especially when paired with the resources of a philanthropic leader such as the San Antonio Area Foundation.

Here’s why DAFs are still essential:

Values Drive Giving, Not Just Tax Savings

At its core, philanthropy is about values, legacy, and impact. (After all, no one gives away a dollar just to save 35 cents.) Your clients want to have an influence on ways that are meaningful, intentional and sustainable. DAFs continue to support those goals – independent of shifting tax rules.

Flexibility Still Matters

A DAF allows clients to separate the timing of their charitable deduction from the timing of their grants. That flexibility remains invaluable when planning around liquidity events, uneven income years, business exits or concentrated asset positions, even if deductions are partially constrained under new laws.

Area Foundation DAFs Offer More Than A Transaction

Donor advised funds at the Area Foundation deliver benefits that extend well beyond the tax code. Your clients gain access to:

• Local expertise and deep knowledge of regional nonprofits.
• Insight into emerging community needs and impact opportunities.
• Guidance that helps align charitable dollars with long-term community outcomes.
• This is philanthropy grounded in place, relationships and trust.

A Better Experience For You And Your Clients

When you recommend a DAF at the Area Foundation, you can do so with confidence. Clients receive:

• Administrative simplicity.
• High-touch service.
• Opportunities for multigenerational engagement and family philanthropy.
• The gain of a collaborative partner who understands how charitable planning fits into estate, tax and wealth strategies.

A Platform That Evolves With The Client

DAFs at the Area Foundation support holistic wealth and legacy planning. They integrate seamlessly into estate plans, help smooth charitable giving over time and provide a durable platform for strategic philanthropy that can evolve alongside a client’s life, values, and financial circumstances.

The Bottom Line

DAFs remain a cornerstone of thoughtful charitable planning in 2026 and beyond. The Area Foundation makes it easy for you to continue using DAFs as a powerful, flexible and purpose-driven solution for your charitable clients – regardless of how the tax rules change.

The post Why Donor Advised Funds Are Still Essential in 2026 appeared first on San Antonio Area Foundation.

The PAC recognizes that professional advisors are often the partners clients turn to when they begin thinking seriously about values, legacy, and impact. And for advisors who believe philanthropy should be as thoughtful and strategic as any other investment, the PAC offers a chance to lead that conversation together.

Through combined knowledge of guiding complex giving decisions, council members will help move local philanthropy toward intentional charitable investment. This includes inspiring strategic use of charitable tools, encouraging support for promising nonprofits, and helping donors think more holistically about place-based impact in our rural and underserved communities.

For nonprofits, this translates into funding that is more informed, more flexible, and better aligned with organizational capacity and long-term goals. For the community, it means capital is deployed with greater insight and coordination. “Professional advisors play a critical role in how generosity takes shape in our region,” says Lisa Brunsvold, Chief Development Officer at the San Antonio Area Foundation. “The Professional Advisor Council creates a space for shared learning and leadership so we can support stronger outcomes for the community we all care about.”

Who serves on the Professional Advisor Council?

The Professional Advisor Council will be a select group of 12-20 experienced professionals drawn from across the advisory landscape, including attorneys, CPAs, financial planners, wealth managers, trust officers, and others involved in estate, tax, and charitable planning.

Members of the PAC will participate in ongoing dialogue about trends in philanthropy, share practical expertise with peers, and provide direct input that helps shape how the Area Foundation supports advisors and their clients.

Advisors interested in serving on the inaugural council can apply online. Applications are due by February 28, 2026.

A Two-Way Learning Community

The PAC is intentionally designed as a two-way exchange: Advisors learn from one another, and the Area Foundation learns how to better support client-centered charitable planning across the region.

Members benefit from curated educational experiences led by national experts, access to tools and case studies that support values-driven client conversations, and a strong peer network of respected advisors and community leaders. The council also provides opportunities for recognition as philanthropic leaders shaping the future of giving in Bexar and surrounding counties.

Just as importantly, members gain a deeper understanding of local nonprofit needs and emerging opportunities—insight they can carry directly into their client work.

Council members serve two-year, renewable terms. Members meet six times per year from April to October to discuss emerging planning trends, participate in focus groups that inform Area Foundation strategies, and engage in optional working groups focused on education, outreach, and events. Site visits and briefings with nonprofit leaders offer a grounded view of how philanthropy plays out on the ground.

Learn More

Advisors interested in learning more about the Professional Advisor Council, discussing time commitments and expectations, or understanding the application process, are encouraged to contact David Simmons at dsimmons@saafdn.org or 404-964-1785.

The post San Antonio Area Foundation Establishes Professional Advisor Council appeared first on San Antonio Area Foundation.

Nowhere is this more evident than during one of the most delicate transitions in advisory work: the period after a client passes away.

During this time, estate plans activate, emotions run high and families adjust to loss. Unfortunately, research suggests that fewer than 20 percent of heirs continue working with their parents’ advisor once assets transfer. That makes building meaningful relationships with the next generation essential well before an estate is ever administered.

Why philanthropy matters in client continuity

You likely already invite heirs into meetings, send notes and look for opportunities to connect. One of the most powerful ways to deepen those relationships is through philanthropy.

For most families, wealth represents more than capital – it carries values, purpose and history. Charitable giving naturally opens conversations about legacy, priorities and what matters most to the family across generations. Those discussions can be the bridge that keeps heirs engaged with the advisory team long term.

How the San Antonio Area Foundation supports advisors

Our team helps advisors spark these connections with resources such as:

• Donor-advised, designated, or field-of-interest funds,simple structures that allow families to give together.
• Cause research and curated nonprofit site visits to engage all generations in giving.
• Educational conversations about charitable planning and tax-efficient strategies, including gifts of appreciated stock.
• Facilitated family meetings to help heirs understand and carry forward philanthropic intent.

These tools do more than advance philanthropy – they deepen family identity, strengthen intergenerational ties and help advisors maintain lasting connections even as wealth transitions to a new generation.

Build relationships that last decades, not years

Any thoughtful engagement with heirs improves retention. Philanthropy, however, offers a uniquely personal entry point – one rooted in meaning, shared values and legacy.

If you would like support in starting these conversations, we are here to help.
We look forward to helping you retain your client relationships for many years to come.

The post A Key To Client Retention: Charitable Planning appeared first on San Antonio Area Foundation.

What many advisors may not realize, however, is that a DAF at the San Antonio Area Foundation is not just a standalone giving tool – it can serve as the flexible foundation of a client’s entire charitable giving strategy.

Organize Annual Giving

A DAF provides a centralized hub for charitable giving, ideal for clients who give to multiple organizations each year. Clients can contribute cash, appreciated stock, or other assets and then recommend grants to charities over time.

With the new floor and cap on charitable deductions set to take effect next year, 2025 presents a key window for “bunching” multiple years of charitable gifts into one. This strategy maximizes tax benefits now while creating a reserve of philanthropic capital for future giving.

 Access a Full Suite of Giving Tools

A DAF is often just the beginning. Through the Area Foundation, clients gain access to a range of charitable vehicles and services to match their unique goals, including:

Philanthropic Advising – You have a team of local experts under one roof to provide philanthropic advice and support.

Community Connection – Gain access to a network of like-minded donors. Receive Giving Guides, special event invitations and witness the impact firsthand.

Family Philanthropy Support – Area Foundation has staff members certified in family philanthropy and working with multi-generational legacy planning.

Fund Options beyond a DAF

Designated Funds – Provide long-term support to specific nonprofits.

Field-of-Interest Funds – Target causes that matter most, like education, health, or the arts.

Enhance Community Impact

The Area Foundation’s deep local knowledge helps clients turn generosity into measurable results. Our team connects donors with community needs and trusted nonprofit partners, helping them see and understand the difference their gifts make.

 Integrate with Retirement and Legacy Planning

IRA Giving: Clients aged 70½ or older can direct Qualified Charitable Distributions (QCDs)up to $108,000 per taxpayer in 2025, from IRAs to a designated, field-of-interest, or unrestricted fund, bypassing taxable income.

Legacy Planning: The Area Foundation helps clients extend their charitable vision through bequests, trusts, or beneficiary designations. These legacy gifts ensure ongoing support for the causes they care about most, guided by our long-term stewardship.

 The Bottom Line

Partnering with the Area Foundation allows your client’s DAF to function as more than a tax-efficient giving account – it becomes the cornerstone of a comprehensive, flexible charitable portfolio, designed to adapt through changing tax environments and community priorities.

Together, we can help your clients give strategically, efficiently, and meaningfully. Reach out to us and let’s talk: David Simmons, Area Foundation Wealth Advisor Relations Manager, dsimmons@saafdn.org or (210) 570-1492.

The post Exploring Donor-Advised Funds: Flexible & Tax-Friendly appeared first on San Antonio Area Foundation.

Consider the following hypothetical client situations:

You want to help Emily Harper benefit from itemizing deductions

Your client, Dr. Emily Harper, a 62-year-old physician, has long supported many local charities with annual donations totaling around $20,000. While generous, her giving has not exceeded the standard deduction under the current tax law, which means she has received little to no tax benefit for her contributions. You’ve counseled Emily that 2026 will bring even more limitations on her ability to deduct charitable contributions.

Working with the San Antonio Area Foundation, you are arranging for Emily to contribute $100,000 of appreciated stock this December to establish a donor-advised fund (DAF). This large, single-year contribution will allow her to itemize deductions for 2025 and maximize her tax savings, while still preserving the flexibility to recommend grants of $20,000 per year to her favorite charities over the next five years. By front-loading her philanthropy, Emily not only secured a significant deduction even under the higher standard deduction thresholds in place, but she also avoided potential exposure to the upcoming IRS “floor and cap” rules under the One Big Beautiful Bill Act.

You are worried about Jonathan Lee’s concentrated stock positions

Jonathan Lee, a 58-year-old business executive, has accumulated a significant position in a favorite stock over the past two decades. As Jonathan’s advisor, you have grown increasingly concerned about the concentration risk in his portfolio and the steep capital gains tax bill he would face if he sold shares outright. You also discovered that Jonathan has consistently supported a handful of local charities with annual cash gifts. (This made you cringe; you wish Jonathan had consulted you about giving stock versus cash.)

Working with the Area Foundation, you arranged for Jonathan to donate $250,000 worth of his highly appreciated stock to establish a DAF. This move accomplished two critical objectives: it allowed Jonathan to bypass the capital gains tax on the gifted shares and made him eligible for a full fair-market-value charitable deduction for the stock’s value on the date of the gift. Now, instead of writing annual checks from after-tax dollars, Jonathan can recommend grants from his DAF over time, maintaining his giving pattern while enjoying significant tax efficiency. What’s more, by contributing stock instead of cash, Jonathan transformed a concentrated holding into diversified charitable capital.

Margaret Davis has more money in her IRAs than she’ll ever need

Your client, Margaret Davis, is 74. She continues to receive royalty income from several books she wrote over the course of her career as a successful romance novelist. Margaret also owns several IRAs. Her royalties are more than enough to cover her living expenses; she simply does not need the Required Minimum Distributions (RMDs) from her IRAs. You have counseled her, though, that she has to take those distributions under IRS rules.

Recently, Margaret sent you an article she read in the Wall Street Journal about Qualified Charitable Distributions (QCDs). Truth be told, you’ve heard about QCDs, but you don’t specialize in tax planning, and you simply have not had the time to get up to speed on these vehicles. But, because Margaret brought it up, you wisely dive in. 

You learn that Margaret, because she is over 70 ½, can direct up to $108,000 (the 2025 limit) to qualified charities. You’ve reached out to Area Foundation for help, and you are glad you did because we’re helping set up a designated fund to receive Margaret’s QCDs. The designated fund, in turn, will support the local animal shelter, where Margaret has volunteered for decades, even after Margaret dies.

What’s more, the QCD dollars are excluded from Margaret’s income and still satisfy a portion of her RMD. Also, the QCD reduces Margaret’s exposure to Medicare IRMAA surcharges — benefits that would not have accrued if she’d simply donated from after-tax cash. 

If your client base includes people like Emily, Jonathan and Margaret, please give us a call! The Area Foundation is here to help. The tax benefits are terrific, but that’s not what is most important. What we value the most is that you are helping your clients fulfill their charitable objectives, making our community and the lives of the people who live here even better for generations to come.

The post Advising Donors: Different Cases, Common Theme appeared first on San Antonio Area Foundation.

We have rounded up five of the most common questions we hear from San Antonio Area Foundation supporters:

1. Did the OBBBA change the rules for Qualified Charitable Distributions (QCDs)?

Short answer: No.

Taxpayers age 70½ and older can still direct up to $108,000 (per taxpayer, 2025 limit) from an IRA to an eligible charity, including certain types of funds at the Area Foundation. The IRS rules for QCDs remain the same, but how they fit into overall planning has changed (see below).

2. How does the OBBBA make QCDs even more valuable?

QCDs have become even more powerful under the OBBBA because:

• Bypassing the new AGI floor – starting in 2026, itemized charitable deductions will be subject to a 0.5% adjusted gross income floor (QCDs are not affected).
• Avoid the 35 percent deduction cap – high-income taxpayers will face a 35 percent limit on the value of their itemized charitable deductions (QCDs remain fully tax-free).
• Reduce taxable income directly – unlike itemized gifts, QCDs lower adjusted gross income without requiring clients to itemize.

Bottom line: QCDs allow retirees to maximize charitable impact in a more restrictive tax environment.

3. When should I involve the Area Foundation?

Early and often.

The Area Foundation can help you explore QCD-friendly strategies. Several types of funds can receive QCDs, including:

• Field-of-interest funds.
• Designated funds.
• Unrestricted funds.

Important: Donor-Advised Funds (DAFs) cannot accept QCDs under IRS rules. However, we can work with you to establish an additional eligible fund alongside your DAF to support an overall charitable plan that meets your financial, estate and philanthropic goals.

4. Why are IRAs such powerful legacy gifts?

IRAs are uniquely tax-efficient for charitable giving, both during life and at death:

• During life – contributions to traditional IRAs may be tax-deductible, and account assets grow tax deferred.
• At death – leaving an IRA to a fund at the Area Foundation avoids both income tax and estate tax:
  • Charities can withdraw IRA funds tax-free, unlike heirs.
  • Charitable bequests are fully deductible from the taxable estate.

For families focused on long-term impact, IRAs are one of the most efficient ways to support the causes you care about.

5. Does the entire QCD have to go directly to charity?

No. The OBBBA preserved the option for a “split-interest” QCD through what is called a Legacy IRA gift:

• Families can direct up to $54,000 (per taxpayer, 2025 limit) from an IRA to fund either:
  • A Charitable Gift Annuity (CGA) is typically the simpler option.

Or

• A Charitable Remainder Trust (CRT), more complex and requires additional administration.

This approach allows families to support charity while also creating a stream of income for themselves or loved ones.

Final Takeaway

The OBBBA introduced new planning opportunities, and QCDs remain one of the most versatile and impactful tools for charitable giving. By involving the Area Foundation early, you can help create strategies that maximize tax savings, support meaningful causes, and leave a lasting legacy. Never hesitate to reach out to us with any questions or to discuss your clients’ philanthropic interests and goals.

David Simmons serves as Wealth Advisor Relations Manager with the San Antonio Area Foundation’s Development and Donor Services Department. He can be reached at dsimmons@saafdn.org.

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Born in Mexico City, Espinosa moved to San Antonio nearly three decades ago at 31 after experiencing a life-altering elevator accident that reshaped the course of his career. In 2002, a routine step into a service elevator turned into a three-story plunge, leaving him with severe injuries and an urgent reminder of life’s fragility.

Following the accident, he left the restaurant business he co-owned at the time and began charting a new path — one centered on financial planning and stewardship.

Soon after his move to the United States, Espinosa quickly noticed how differently philanthropy is practiced north of the border: Here, giving often seemed to extend beyond writing a check to include sharing time, talent and leadership within the community. That realization led Espinosa to pursue the “Chartered Advisor in Philanthropy” designation from the American College of Financial Services, a professional certification for financial advisors who specialize in helping individuals achieve their charitable giving goals. He also wanted to become more deeply engaged in San Antonio’s nonprofit community. Along that journey, Espinosa said he found a natural partner in the Area Foundation.

“In San Antonio, the Area Foundation shines above and beyond, because they do a great job making sure that they help all the nonprofits in the community,” Espinosa said. “I became connected to the Area Foundation through my curiosity in local philanthropy, but I stayed based on the people.”

Over the years, Espinosa has introduced clients to donor-advised funds, guided families weighing whether to create private foundations and collaborated with peers to understand best practices in endowments and giving strategies. He credits the Area Foundation with not only equipping advisors like himself with technical knowledge but also building connections between clients and nonprofits so gifts can have the greatest impact.

Espinosa said his work goes far beyond crunching numbers in an Excel document; his focus is on listening carefully to clients’ stories, educating them about their options, and helping them make decisions that not only serve immediate financial needs but also align with their long-term values. For him, true success means creating strategies that support families across generations while making a lasting impact on the broader community.

The Area Foundation’s growing engagement with professional advisors mirrors his philosophy — collaboration helps overcome hesitation among some in the field who worry about “losing” clients by partnering. Instead, he views the Area Foundation as an extension of fiduciary duty, ensuring families are connected to the right strategies and organizations to fulfill their philanthropic goals.

At home, Espinosa and his wife have raised their son and daughter to be bilingual and proud of their Hispanic roots, reinforcing the idea that heritage is both a source of identity and a framework for giving back. He recalls his involvement while living in Mexico in bringing the Torch of Friendship sculpture to downtown San Antonio as a gesture of gratitude from the Mexican community. With two distinct pillars that rise and twist until they meet at the top, the torch is a symbol, he said, of how cultures, advisors, families and nonprofits can stand stronger together.

As Hispanic Heritage Month unfolds in San Antonio with a plethora of celebratory events, Espinosa’s story reflects both the values of his heritage and the mission of the Area Foundation: to strengthen San Antonio through generosity, stewardship and connection. His guiding principle is simple yet enduring: “Do well by doing good in our community.”

Are you a professional advisor or do you know one who may benefit from partnering with the Area Foundation like Roberto Espinosa to help fulfill clients’ goals in giving back to the community? Learn more about our work and reach out to us to discuss!

Lindsey Carnett is a member of the San Antonio Area Foundation Marketing & Communications Storytelling Ambassador Network.

The post Area Foundation Empowers Wealth Advisor’s Philanthropic Work appeared first on San Antonio Area Foundation.

A survey of 1,007 U.S. high net worth individuals (with at least $3 million in investable assets) found that 83 percent of respondents 43 and under said they currently own or would like to own art.

As you work with this subset of clients who are also charitably minded, you’ll want to be generally aware of the rules surrounding gifts of artwork to charity. When handled appropriately, artwork donations can provide notable benefits for both your client and favorite causes.

The process for these gifts, however, comes with unique complexities, ranging from a client’s emotional attachment to the IRS’s watchful eye on donations involving historically misvalued or fraudulent art gifts.

Here are three ways to approach helping a client leverage an investment in artwork for charitable purposes:

The client donates the artwork directly to a charity for “related use”

If your client donates art held for more than one year directly to a museum or institution that uses it as part of its mission (for example, displaying the art in public collections or exhibitions), the charitable tax deduction can be based on the fair market value at the time of the gift, which could deliver a significant upside for your client.

“Related use” rules are strict. The artwork must enhance or be central to the organization’s mission. Donated pieces valued over $500 require your client to file an IRS Form 8283, and gifts valued over $5,000 also require a qualified appraisal. Note also that if the charity sells the piece within three years of making the gift, the deduction could be retroactively reduced.

The client gives the artwork to a charity for it to sell

If your client gives artwork to a charity that sells the artwork rather than use it in programming, the deductible amount is limited to the lesser of the fair market value or the client’s original cost basis. While the tax deduction might not be as high as the client would like, the advantage of this route is that it offers flexibility, both related to the recipient organization (such as a donor-advised fund at the community foundation) as well as the use of the proceeds from the artwork’s sale. Your client still must follow the IRS reporting and appraisal rules. 

The client sells the artwork and then gives the proceeds to charity

This is often an unattractive choice from a tax perspective, but it is certainly an option, especially if maximizing a deduction is less critical than avoiding the complexities of gifting artwork. Although the cash gift will be eligible for a charitable tax deduction, the client will incur capital gains tax on the appreciated value of the art, reducing the net financial benefit of the gift.

As with any gift of hard-to-value assets, the best approach for donating artwork is highly dependent on the individual client’s art collection, tax situation, and charitable goals. The San Antonio Area Foundation team is always happy to serve as a sounding board for charitable gifts of all kinds. Reach out any time – we are always here for you!

The post Gifts of artwork: Worth a look, but be careful appeared first on San Antonio Area Foundation.

“Behind a paycheck, the largest source of income for the 1% highest earners in the U.S. isn’t being a partner at an investment bank or launching a one-in-a-million tech startup. It is owning a medium-size regional business.”

What’s more, the chances are very good that most of your business-owner clients are charitably inclined. Indeed, more than 90 percent of small business owners have supported charities and community activities in the last year.

This means that you and other tax and estate planning advisors ought to have at least a basic level of knowledge about the benefits and mechanics of giving closely held business interests to charity. When properly executed, this technique can be extremely effective in achieving the client’s financial and philanthropic goals.

Here are three very important components of this strategy:

• Stop before you use a private foundation.

Some of your business owner clients probably have established a private foundation. But that’s not the ideal recipient of private business interests. Donating closely-held stock to a fund at the San Antonio Area Foundation is generally more tax effective than giving it to a private foundation due to several key differences in how the IRS treats these gifts. When your client donates closely held stock to the Area Foundation, your client can typically deduct the full fair market value of the stock, up to 30 percent of adjusted gross income and also avoid paying capital gains tax on any appreciation. By contrast, if your client donates the same stock to a private foundation, the deduction is limited to cost basis up to only 20 percent of AGI, which is a significantly less favorable tax outcome.

• Mind the timing. 

Encourage a business-owner client to start planning for a gift of closely held stock before putting out feelers to potential acquirers and absolutely before any part of a deal is inked. This is crucial because a gift to charity will avoid substantial unrealized capital gains that have accrued in the business over the years only if the gift and the sale are genuinely separate events, avoiding the step transaction doctrine. Careful planning will help ensure that the client’s fund at Area Foundation will receive 100 cents on the dollar for the portion of the stock it owns and the deduction won’t be thrown out. 

• Respect the rules for valuation. 

Counsel your clients about securing a proper valuation for charitable deduction purposes at the time the business interest is contributed to the fund at the Area Foundation. Valuation has always been a critical factor in any type of tax or estate planning strategy. Recently, the additional wrinkle presented by the Supreme Court’s decision in Connelly v. United States makes things even more interesting.

The Connelly decision impacts the way business interests are valued for estate tax purposes. In Connelly, the Supreme Court held that life insurance proceeds indeed ought to be included in the value of a company without offsetting the redemption obligation. This could translate to higher taxable estates for your business-owner clients, creating further incentive to leave a portion of closely held stock to charity. The decision is also a reminder that careful planning can potentially avoid pitfalls.

As always, please reach out to the Area Foundation anytime the topic of charitable giving arises in client conversations. We are honored to be your first call on all matters of philanthropy.

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