For many CPAs, estate planning attorneys and financial advisors, the end of 2025 brought a whirlwind of charitable planning activity, particularly among high-income clients.
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.
