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Staying Ahead of the Curve: Financial Laws and Philanthropic Opportunities

Oct 06, 2025

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As your trusted partner in charitable giving, Greater Houston Community Foundation is dedicated to staying informed about the latest legal developments and best practices in philanthropy. We understand that our client’s philanthropic intentions are diverse and often complex, and we are committed to helping them navigate the ever-changing landscape of philanthropic giving.

We closely monitor financial laws and regulations that may impact philanthropy broadly, as well as specific giving vehicles and strategies. Recently, we have been tracking the IRS’s plan to increase audits of wealthy taxpayers, ensuring that our team is well-positioned to help our donors and their advisors understand the requirements of valuing gifts to charity. We are also preparing for the potential impact of the anticipated estate tax exemption sunset on 1/1/2026 by helping to incorporate charitable giving vehicles into estate plans.

What changes are coming for charitable giving?

One of the most significant upcoming changes involves the tax law sunset scheduled for the end of 2025. The Tax Cuts and Jobs Act provisions are set to expire, which could substantially alter the landscape for charitable contributions. We’re actively monitoring these developments and preparing strategies to help donors maximize their impact before and after these changes take effect.

For guidance on rules for charitable contributions and how they may evolve, we recommend consulting both the IRS charitable donations value guide and working with your professional advisors alongside our team at the Community Foundation.

Understanding the 2026 Tax Law Sunset

The tax law sunset, or the Great Tax Sunset, refers to the scheduled expiration of key provisions from the Tax Cuts and Jobs Act (TCJA) at the end of 2025. This sunset will significantly impact estate planning and charitable giving strategies for many donors. When these provisions expire, the federal estate tax exemption is expected to drop from its current historically high levels to approximately half of what it is today, adjusted for inflation.

This reduction in the estate tax exemption means that more estates will be subject to federal estate taxes, creating both challenges and opportunities for strategic charitable giving. Donors who act before the sunset can take advantage of the current higher exemption limits while incorporating charitable vehicles into their estate plans to maximize both their philanthropic impact and tax benefits.

At Greater Houston Community Foundation, we’re working closely with donors and their advisors to develop strategies that account for these coming changes, including the use of donor advised funds (DAFs) and legacy planning and giving tools to help ensure continuity of charitable intent regardless of regulatory shifts.

What are the changes to charitable giving in 2026?

While the exact impact won’t be known until Congress acts—or fails to act—on the expiring provisions, several changes to charitable giving in 2026 are anticipated:

  • Estate tax implications: The reduced estate tax exemption will likely cause more high-net-worth individuals to explore charitable giving as a strategy for reducing taxable estate values while supporting causes they care about.
  • Strategic timing: The period leading up to and immediately following the sunset creates unique opportunities for strategic charitable planning. Donors may want to accelerate certain gifts or establish charitable vehicles before the changes take effect.
  • Planning flexibility: Vehicles like donor advised funds offer particular advantages during times of regulatory change, allowing donors to secure immediate tax deductions while maintaining flexibility in how and when grants are recommended to charities.

Whether you need help re-factoring your estate plan or are just wondering “what is the new tax law on charitable contributions?” our team can help. We stay current on rules and regulations and regularly consult the IRS charitable donations value guide to help make sure our donors have the most accurate and timely information—and that their gifts are structured as strategically as possible. We recommend that donors considering significant charitable gifts consult with their professional advisors, and connect them with philanthropic advisors, well in advance of the 2026 deadline. 

Donor advised funds: regulatory insights

Another issue we’re watching closely is the latest news on the IRS’s proposed regulations of donor advised funds. This popular giving vehicle allows you to make a tax-deductible contribution of cash, stock, business interests, and other assets that are eligible for a charitable deduction. Then, you can recommend gifts to your favorite nonprofit organizations from your fund to meet community needs as they emerge.

We carefully reviewed the transcript from the public hearings last May, where community foundation leaders and experts from across the country came together to share their perspectives on the proposed regulations. It was heartening to see a unified voice from the community foundation sector, urging policymakers to prioritize the integrity of philanthropic giving while maintaining positive and productive relationships between community foundations and advisors.

As the regulatory landscape continues to evolve, we closely monitor developments and stay informed about potential changes to the proposed regulations. While it is uncertain if or when the regulations will be finalized, we are committed to keeping you informed about any updates that may impact your philanthropic goals. Our team provides expert guidance and support throughout this process, ensuring that your charitable intentions remain at the forefront of our efforts.

Continue reading about donor advised funds at the Community Foundation:

Diversified philanthropic portfolios

At Greater Houston Community Foundation, we take pride in partnering with you to craft tailored philanthropic plans that incorporate a variety of giving vehicles, enabling you to make a meaningful and lasting impact in the Houston community. We believe that a single giving vehicle may not be sufficient to meet all your philanthropic goals, which is why we offer a range of options, including:

As your philanthropic partner, we can help create a customized philanthropic strategy that meets your unique goals and objectives.

Collaborative partnerships at Greater Houston Community Foundation

At the core of what we do, Greater Houston Community Foundation is committed to building collaborative partnerships and serving as a trusted philanthropic partner to our donors. Our team will continue to stay abreast of the latest trends, best practices, and regulatory changes, ensuring that you have access to the most informed and expert guidance.

At Greater Houston Community Foundation, we are dedicated to being a partner that not only understands your philanthropic goals but also helps you achieve them. We will continue to prioritize your needs and work to ensure that your giving makes a meaningful and lasting impact in our community, just as you intended.

If you’re ready to start a conversation about how we can support your philanthropic goals, we invite you to reach out today. Contact Kevin Pickett to learn more about our services and how we can help you make a difference in our community.

More Helpful Articles by Greater Houston Community Foundation: 

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