To help demystify and simplify the decision-making process, our experts have created an actionable checklist with 13 critical questions to ask them based on two important factors: their giving style and their considerations on fees and financials. Download your checklist.

Want to stay updated on philanthropy insights throughout giving season?
Our subject matter experts are waiting in the wings to help! There are a few simple ways you can stay at the forefront:

• Subscribe to our blog—we’ll send you important news and insights right to your mailbox.
• Check out our upcoming events, which include webinars (and replays), conferences and speaking engagements.
• Follow us on LinkedIn, Facebook, Instagram, and Threads—it’s a great way to get a pulse on philanthropy and join the conversation.

Learn More About How We Support Advisors
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.

The post DAFs vs Private Foundations: Do You Know These 13 Critical Questions to Ask Clients? appeared first on Foundation Source.

#1: Expanded Excise Tax on High Compensation. The bill amends Internal Revenue Code (IRC) Section 4960, expanding the 21% excise tax on compensation exceeding $1 million. Previously, under the 2017 Tax Cuts and Jobs Act, this tax applied only to the five highest-compensated employees of a tax-exempt organization, current or former, with liability allocated proportionally among the exempt entity and related organizations via Form 4720. Starting in 2026, the tax will cover all employees—current or former—of the tax-exempt organization earning over $1 million who were employees during any taxable year beginning after December 31, 2016. This means that tax-exempt organizations must now review compensation records from 2017 and onward to identify any current or former employees paid over $1 million, even if they weren’t among the top five earners in such past years.

For example, a retired executive receiving a $1.2 million deferred payout from a related for-profit subsidiary would trigger the tax, with the subsidiary liable for its share on the $200,000 excess. This broader scope could increase compliance costs and push nonprofits to restructure compensation to avoid tax liability. Advisors should review compensation agreements and related-entity structures to mitigate exposure.

#2: Charitable Deduction Changes. The bill reshapes charitable deductions for individuals and corporations. For individuals, it establishes a permanent above-the-line deduction for non-itemizers, capped at $1,000 ($2,000 for joint filers), encouraging modest giving among the roughly 90% of filers who don’t itemize.

For itemizers, a new 0.5% floor on adjusted gross income (AGI) applies, meaning only contributions exceeding this threshold are deductible. Carryforwards are also allowed only if this 0.5% floor is met.

The 60% AGI limit for cash contributions to public charities is made permanent, preserving incentives for larger donations. However, the tax benefit for itemized deductions is capped at 35 cents per dollar, down from 37 cents for top-bracket taxpayers, slightly reducing high-earner incentives.

For corporations, a 1% floor on taxable income is imposed, so only contributions exceeding this threshold are deductible, up to the existing 10% limit. Independent Sector estimates this could reduce corporate charitable giving by approximately $4.5 billion annually, straining nonprofit budgets, particularly for smaller organizations.

A new nonrefundable tax credit of up to $1,700, starting in 2027, applies to donations to organizations granting scholarships to private or religious K-12 schools, potentially diverting funds from broader charitable causes.

Ready To See The Rest of the List?
Check out the complete resource.

Learn More About How We Support Advisors
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.

The post 4 Key Tax Changes for Exempt Organizations: Help Your Clients Navigate The OBBB’s Complex Landscape appeared first on Foundation Source.

We’re also excited to share that Foundation Source won in another category: Thought Leadership (Americas). These awards recognize Foundation Source’s powerful combination of modern, cloud-based platforms and professional services, including specialized administrative, compliance, tax, and program guidance that enables our firm to provide comprehensive philanthropic support at scale. It also underscores the value of innovative and dedicated leadership.

At the heart of this evolution is a commitment to making charitable giving more accessible, efficient, and impactful. From private foundations to donor-advised funds and planned giving, Foundation Source now offers a comprehensive suite of technology, administrative, and philanthropic consulting services. These solutions are designed to support professional advisors in helping their clients align their wealth with their values—driving social good in ways that matter most to them.

This award is a testament not only to Mr. Mrak’s leadership but also to the dedication of our entire team. Together, we’re redefining how philanthropy fits into the broader wealth management ecosystem.

To learn more about this recognition and our continued innovation, read the full press release.

We’re On a Roll!
For the second year in a row, Foundation Source has been named as a finalist in the Philanthropy category for leveraging PhilTech at the Wealth Management Industry Awards. Check out the full list of all the finalists. The awards ceremony will be held on on Thursday, September 4th at Cipriani in New York City. Congratulations to all of the finalists!

Learn More About How We Support Advisors
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.

The post Celebrating Leadership in Innovation: Joseph Mrak III Wins WealthBriefing’s 2025 Wealth for Good Award appeared first on Foundation Source.

In short? Their report found that most families are deeply concerned when it comes to ensuring their wealth has a positive impact on the next generations.

For instance, almost half of the respondents want to see their wealth invested well, while 35% note it is important to maintain family unity. And almost one quarter want to establish a positive legacy and avoid entitlement.

Check out the full report.

Want to stay updated on philanthropy?
Today’s leading advisors are tapping into our subject matter experts to propel their practice with philanthropy. There are a few simple ways you can stay at the forefront:

Subscribe to our blog—we’ll send you important news and insights right to your mailbox.

Check out our upcoming events, which includes webinars (and replays), conferences and speaking engagements.

Follow us on LinkedIn, Facebook, Instagram, and Threads—it’s a great way to get a pulse on philanthropy and join the conversation.

Learn More About How We Support Advisors
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.

The post Wealthy Families Are Looking to Their Advisors to Help Them Examine the Societal Impact of Their Fortunes appeared first on Foundation Source.

In addition to our blog and Resource Hub, which is our continuously expanding educational library, our SMEs are lending their expertise to professional and post-graduate level curriculum to prepare both experienced advisors and students who are planning a career in wealth management to deliver holistic client support.

McCombs School of Business Wealth Management Seminar
Our Chief Marketing Officer Hannah Shaw Grove was a guest lecturer for the spring 2025 Wealth Management Seminar for the Wealth Management Center at the McCombs School of Business at the University of Texas. The semester-long Seminar for master’s in finance candidates covers topics such as investment management, asset allocation, taxation, financial planning, risk management and client service.

Hannah’s course addressed:

• The business case for coordinating philanthropy in wealth management
• The fundamentals for donor-led philanthropy
• An overview of vehicles, tools and resources
• Benchmarks and modern approaches for putting it into practice with high-net-worth clients

American College of Financial Services DAF Certification Course
Earlier this year, our President of DAFs Stephen Kump, served as an instructor for the American College of Financial Services DAF Certification Course. The goal of this course is to equip financial services professionals with an understanding of how stakeholder management is unique in a donor-advised fund (DAF) context.

The takeaways from this course included:

• An overview of the numerous and interconnected relationships in the DAF landscape (donors, advisors, charities, communities, board of directors, the IRS, SEC/FINRA, the general public, etc.)
• The expectations of each audience
• Why it depends on what you promise to them upfront
• How we relate to most of our direct-to-donor users purely through our product and what it communicates to them
• Why we treat our advisor partners as the primary audience and attempt to relate to their donors through them

Continuing Education & Upcoming Events
Today’s leading advisors are tapping into our SMEs like Hannah and Stephen to learn how to propel their practice with philanthropy. There are a few simple ways you can stay at the forefront:

Subscribe to our blog—we’ll send you important news and insights right to your mailbox.

Check out our upcoming events, which includes webinars (and replays), conferences and speaking engagements.

Follow us on LinkedIn, Facebook, Instagram, and Threads—it’s a great way to get a pulse on philanthropy and join the conversation.

Learn More About How We Support Advisors
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.

The post Foundation Source Subject Matter Experts Support Advanced Advisor Education appeared first on Foundation Source.

Private foundations would face an escalating tax based on their size, differing from the current flat excise tax rate of 1.39% for all foundations. The table below shows the proposed tiers.

Section 112022 of the Bill Provides As Follows:

Assets in this case would be defined as the aggregate fair market value of all assets of a private foundation, determined at the close of a taxable year without reduction for any liabilities. The assets of a foundation will be aggregated with the assets of certain related organization, although the text of the bill would prevent double-counting of the same assets for more than one foundation. For example, if a large foundation were to split up into multiple foundations to “game” the tax rate, the asset balances of all related foundations would be aggregated for purposes of determining the applicable tax rate.

For this purpose, a “related organization” means an organization, regardless of its tax status, that controls or is controlled by the foundation, or that is controlled by one or more persons that also control the foundation. However, the assets of a related organization would not be aggregated with those of the foundation if the related organization’s assets are not intended or available for the use or benefit of the private foundation.

The effective date in the bill is the tax year beginning after that date of the enactment of the bill.

What Else Is Included in the Bill That Could Impact Foundations?

Other measures included in this tax bill that could have implications on private foundations’ activities are:

• Expanding the application of the tax on excess compensation paid by tax-exempt and certain related organizations.
  • The definition of “covered employee” that would be considered for the 21% excess compensation tax would be expanded to include “any employee (including any former employee) of an applicable tax-exempt organization,” not just the five highest-paid employees. The excess compensation threshold remains unchanged at $1 million or more in annual remuneration.
• Termination of tax-exempt status of terrorist-supporting organizations.
  • The tax bill gives the Secretary of the Treasury the ability to designate an organization as a “terrorist-supporting organization” and rescind tax-exempt status.
  • The House Rules Committee struck this provision from the bill on May 19, 2025.
• Unrelated business taxable income increased by amount of certain fringe benefit expenses for which deduction is disallowed.
• Certain purchases of employee-owned stock are disregarded for purposes of foundation tax on excess business holdings.

What’s the Typical Lifecycle for This Type of Bill?
As with all bills, there are several steps that include introduction, committee review, floor debate and voting. If it passes in the House, it will be sent to the Senate where the process is repeated. If the two chambers produce different versions of the bill, it will require committee action to hammer out a compromise before final approval and presidential action. This process can take weeks or months to accomplish.

In our experience, complicated bills like this one generally go through many revisions before being passed— so, while there’s a possibility it could pass by year-end, there’s a reasonable chance it’s likely to be markedly different than the current proposal.

We will continue to monitor the situation closely and are available to discuss this with clients and their advisors as new information becomes available.

Looking to Learn More?

Schedule a call with us or reach us at 800-839-0054. Foundation Source clients, please contact your Private Client Advisor for assistance. Together, let’s #begiving. You can also check out these additional resources:

• House Bill Proposes Increase In Excise Tax For Certain Foundations, Among Other Provisions
• Significant Changes For Tax-Exempt Organizations Included in House Ways and Means Committee Tax Package

The post What We’re Watching: The Proposed Tax Bill and Its Impact on Private Foundations appeared first on Foundation Source.

For Private Foundations:

• Tax Benefits of a Private Foundation
  Foundations offer four attractive benefits to donors that can mitigate income, capital gains and estate taxes.
• 4 Tax Benefits of a Private Foundation
  For HNW individuals who have a strong charitable interest, private foundations offer an opportunity to save in taxes while creating a lasting philanthropic legacy.
• Advanced Tax Strategies for Private Foundations
  Six sophisticated strategies for private foundations to reduce tax liability and preserve the value of their endowments.
• The 990-PF: How to Reap Savings and Avoid Pitfalls
  We’ve reviewed and prepared thousands of private foundation tax returns – here’s what we’ve learned.
• Unrelated Business Taxable Income (UBTI) for Private Foundations
  Learn more about the implications of generating excess UBTI from activities, investments or assets in a foundation.
• The Conduit Election
  This annual election offers two key tax advantages for contributions – higher AGI caps and an FMV deduction for certain appreciated assets.

For Planned Giving Programs:

• Poof! Tax Concerns That Vanish with Gifts Made Upon Death
  Certain gifts made upon death don’t have the same requirements as gifts made during life—see the differences.
• Charitable Lead Trusts: Not Just For the Super-Rich
  There can be significant tax benefits for certain donors in establishing CLTs, but there’s more than meets the eye behind them.

For Donor-Advised Funds:

• 3 Smart Tax Strategies to Use with a Donor-Advised Fund
  By utilizing a donor-advised fund, you’ll unlock a variety of strategies that allow you to be smarter about your taxes and minimize your tax burden.
• Giving and Taxes 101: How and When Charitable Giving Is Tax-Advantaged
  Learn the basics of tax-advantaged charitable giving, including income tax deductions, itemizing vs. taking the standard deduction, deduction limits, and more.

If you’re ready to help clients save more so they can give more, check out the 2025 Tax Guide.

Learn More About How We Support Advisors
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.

The post 2025 Tax Guide: New Resources To Help Clients Maximize The Tax Benefits of Their Giving appeared first on Foundation Source.

Industry-wide trends have also shown charitable giving to be a draw to women. Of ultra-high-net-worth women, 60% cite philanthropy as their top interest. Among our clients, we too have seen an uptick in women driving philanthropy over the past few years. But regardless of their income levels or generation, women are more likely to donate than their male counterparts, according to research from the Lilly Family School of Philanthropy at Indiana University.

Understanding Their Motivations To Give
Did you know that women are motivated to give based on empathy, while men often donate to further self-interest? Women are also not limiting their giving to specific charities and instead are more likely to contribute to a variety of organizations. This is key for advisors—how might a charitable conversation look different if you understand their motivation is coming from a place of empathy? How might you tailor your questions differently? To help kickstart this conversation, check out our Client Meeting Checklist.

Generational and Gender Differences
With the Great Wealth Transfer, $84 trillion is set to transfer to Gen Z and Millennials, and they have different views than their Baby Boomer parents on everything from charitable giving to financial planning. We wanted to better understand how these younger generations view charitable giving. We surveyed 1,000 people between the ages of 18 and 43, and found that on the whole, women are more likely than men to want to make an impactful change to a cause and demonstrate their family’s values; men, on the other hand, are more likely than women to want to create or continue a legacy.

Showcase Philanthropy Expertise
Research has shown that high-net-worth and ultra-high-net-worth individuals expect to discuss philanthropy with their advisors as part of a comprehensive wealth management plan. Based on our decades of experience working with philanthropic families, we’ve put together a suite of specialized insights that are helping advisors before, during and after client meetings.

Bonus: An Upcoming Event For Advisors
Our Chief Marketing Officer Hannah Shaw Grove will be a guest speaker at the 10th Annual Invest In Women Conference, the largest women’s conference in the advisor world. A commitment to serving the unique needs of female clients, this event will include thought-provoking discussions led by industry experts shaping the future of financial advising and champion the needs of female clients. This inclusive event welcomes all to participate in driving excellence and innovation in the financial industry.

Looking For More Insights On This Topic?
Check out our National Philanthropy Executive Gillian Howell’s recent article in Financial Advisor.

Learn More About How We Support Advisors
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.

The post Women’s Financial Power Is Growing and Philanthropy Expertise Is Paramount for Advisors appeared first on Foundation Source.

These discussions will go far beyond portfolio returns and help you forge emotional connections and trust. Such talks also redefine the measure of your clients’ success: Instead of focusing solely on growing their assets or increasing their liquidity, you’ll help them get to deeper motivations—and that will help you create a more enduring, loyalty-driven relationship.

When clients feel their advisors truly understand them, they’re more likely to remain loyal, refer friends and entrust more assets. You’ll also strengthen bonds in a way that makes you a client’s go-to counsel for major life decisions. That can turn you over time into a resource for the client’s entire family as well, meaning you can serve multiple generations.

#2: Launch New Philanthropic Tools
In the past it was a cumbersome process to create philanthropic vehicles such as private foundations or donor-advised funds. It required paperwork, a lengthy administrative process and coordination with multiple entities. Today, technology has emerged that can automate much of the paperwork and streamline much of the process.

Some tech-driven philanthropy tools can even be branded under your firm’s banner, which can further elevate your offerings and demonstrate value with clients. By integrating giving tools into your practice, it’s easier to open conversations about charitable activity and goals. And it will foster a continuous dialogue about the integration of their legacy and money.

Want to See The Last Tip?
Check out the full article.

Learn More About How We Support Advisors
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.

The post 3 Ways Advisors Can Unlock Growth with Philanthropy This Year appeared first on Foundation Source.

#1: How Intentional Are You with Your Charitable Planning?
There are plenty of things we all can do to be happier—and most of them require us to be intentional with our time, actions and thoughts. Numerous studies show that it’s not how much we have, but rather how we use what we have that has the greatest effect on our happiness, which the Berkeley study reminds us. Our Client Meeting Checklist has some helpful prompts to help you dive deeper into this idea and better understand their motivations for giving.

#2: Does Giving Generate Any Memorable Emotions?
Giving to others generates an abundance of benefits, not only for givers and receivers but also for those who witness acts of generosity. The UC Berkeley research also points to a virtuous cycle between giving and happiness: Giving makes people happier, and happier people give more.

Givers also regularly report increased feelings of satisfaction and competence, along with a greater sense of purpose. In 120 of 136 countries, says UC Berkeley, people who donated to charity in the prior month reported greater satisfaction with life. Furthermore, a Foundation Source study of more than 1,700 Americans who engage in charitable activities suggests that giving helps people feel more connected with their communities, too.

The same is true for those who volunteer. The Foundation Source research found that many people engage in charitable activities by volunteering and aspire to continue doing so in the future. Donating time and expertise along with physical help, such as pitching in to build houses or deliver meals, can switch our focus from our own troubles to the needs of those around us, fostering social connections and benefiting everyone involved.

#3: Have You Experienced Any Other Benefits Of Giving?
Medical experts are starting to focus on the tangential benefits of giving, too. In a UnitedHealthcare poll of people who had volunteered in the previous 12 months, the large majority felt healthier (cited by 76% of the respondents), had improved moods (cited by 94%) and reduced stress (mentioned by 78%). Similarly, a blog by the Columbia University Irving Medical Center recently said that generosity has the potential to affect health and well-being by boosting a person’s mood, self-esteem and the immune system, in turn reducing stress, anxiety and blood pressure. The associated chemicals that are produced by the body in response to giving can also help reduce physical discomfort and aid sleep.

Your role as an advisor can extend far beyond discussions about money and wealth planning and be the catalyst to help them make their philanthropy as impactful as possible. When they think of you, they won’t just think of you as an advisor, but as someone who has helped guide them on their path to overall wellness and happiness. And that’s pretty powerful.

Want To See The Rest?
Check out the full article.

Learn More About How We Support Advisors
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.

The post Giving and Wellness: Valuable Insights to Share with Your Clients appeared first on Foundation Source.