The philanthropic landscape has fundamentally shifted. If you’re still advising your major donors to simply write checks at year-end, you’re leaving transformational impact: and significant tax advantages: on the table.

We’re in 2026 now, and the rules have changed. The One Big Beautiful Bill Act (OBBBA) has rewritten the playbook for charitable giving, and the most sophisticated philanthropists are already adapting. At Bridge Philanthropic Consulting, with over 800 years of combined experience and more than $2 billion raised for our clients, we’ve been watching this shift unfold: and helping our partners navigate it with precision.

Let’s break down why Donor-Advised Funds and appreciated assets have become the cornerstone tools for modern philanthropy.

The 2026 Tax Shift: What You Need to Know

Here’s the deal: the new tax environment has created both challenges and opportunities for generous donors. Itemizers now face a higher barrier: charitable contributions are only deductible when they exceed 0.5% of adjusted gross income. Add to that a 35% cap on deductions, and suddenly the old “give a little every year” strategy doesn’t pack the same punch.

Dwayne Ashley, CEO of Bridge Philanthropic Consulting, puts it plainly: “Philanthropy is no longer just about writing a check; it’s about deploying capital with surgical precision to ensure systemic change outlives the tax cycle.”

This is exactly why strategic donors are pivoting to smarter approaches: and why your organization needs to be ready to have these conversations.

Enter the Donor-Advised Fund: The Leader of Giving Vehicles for 2026

DAFs have exploded in popularity, and for good reason. Think of them as a philanthropic holding account that separates the timing of your tax deduction from when you actually grant funds to charities.

Here’s what makes them so powerful:

• Immediate tax benefits: Donors receive their deduction the year they contribute, even if grants to nonprofits happen years later

• Tax-free growth: Assets in a DAF can be invested and grow without capital gains, amplifying charitable impact over time

• Flexibility: Donors can respond to emerging needs, support multiple causes, and adjust their giving strategy as circumstances change

• Simplified administration: The DAF sponsor handles all recordkeeping and IRS compliance

As Dwayne Ashley explains: “Donor-Advised Funds are the multi-tools of the modern philanthropist. They allow our donors to stay liquid and responsive while securing their legacy in a shifting legislative landscape.”

The Executive Director of a major philanthropic foundation we work with echoed this sentiment: “Donors are increasingly treating their philanthropy like their investment portfolios: diversified, tax-efficient, and long-term. DAFs are the cornerstone of that shift.”

Why Appreciated Assets Are the Real Game-Changer

Now here’s where it gets really interesting. When you combine DAFs with appreciated assets: we’re talking stocks, real estate, closely held business interests: the math becomes undeniable.

Consider this scenario: A donor has $100,000 in stock that was originally purchased for $10,000. If they sell it and donate the cash, they’re looking at significant capital gains taxes eating into that gift. But if they transfer the appreciated stock directly to a DAF?

They eliminate capital gains taxes entirely and receive a deduction for the full fair market value.

The numbers speak for themselves:

• 30% AGI deduction limit for appreciated assets, with a five-year carry-forward for unused deductions

• Zero capital gains tax on assets held longer than one year when donated directly

• 20%+ more charitable impact compared to the liquidate-then-donate approach

A Senior VP of Private Wealth at a leading global bank recently shared with us: “In the 2026 tax environment, the ‘Gift Bunching’ strategy paired with appreciated asset transfers isn’t just a tax play: it’s a sustainability play for one’s legacy.”

The Gift Bunching Strategy: Making Every Dollar Count

This is where strategic philanthropy really shines. Gift bunching: consolidating multiple years of charitable giving into a single tax year: allows donors to clear that 0.5% AGI floor and maximize their deductions.

Here’s how it works in practice:

1. Identify the bunching year: Work with donors to determine when concentrated giving makes the most tax sense: often aligned with liquidity events, business exits, or years of higher income

2. Contribute appreciated assets to a DAF: Lock in the tax deduction at the optimal moment while preserving the full value of the gift

3. Grant strategically over time: Continue supporting favorite causes in subsequent years from the DAF, maintaining consistent philanthropic presence without annual tax considerations

4. Repeat the cycle: Build a rhythm of strategic bunching that maximizes impact while optimizing tax efficiency

5. Document and communicate: Keep nonprofits informed about your multi-year giving intentions to help them plan accordingly

This approach isn’t just about saving on taxes: it’s about ensuring your philanthropic vision has staying power.

Why This Matters for Your Organization

If you’re a nonprofit leader or development professional, here’s the truth: your most sophisticated donors are already thinking this way. They’re having these conversations with their wealth advisors, their CPAs, and their estate attorneys.

The question is: are they having them with you?

At Bridge Philanthropic Consulting, our value proposition has been demonstrated success in securing prospect meetings, providing strategic guidance, and helping close gifts with ultra-high-net-worth prospects. We’ve seen firsthand how organizations that can speak fluently about DAFs, appreciated assets, and tax-efficient giving strategies position themselves as true partners in their donors’ philanthropic journeys.

Three ways to elevate your conversations today:

• Educate your team: Ensure your major gift officers understand the basics of DAFs and appreciated asset transfers

• Update your gift acceptance policies: Make it easy for donors to contribute non-cash assets

• Lead with partnership: Position your organization as a collaborator in achieving donors’ philanthropic goals, not just a recipient of their generosity

Building Legacy in a Changing Landscape

The philanthropists we work with aren’t just thinking about this year’s tax return. They’re building multi-generational legacies of social impact. They understand that strategic giving: the kind that leverages DAFs and appreciated assets: creates ripple effects that outlast any single tax cycle.

This is the work we love at Bridge Philanthropic Consulting. For more than two decades, we’ve partnered with mission-driven organizations and visionary philanthropists to create systemic change. We bring the expertise, the relationships, and the strategic insight to help you navigate even the most complex donor conversations.

Ready to explore how these strategies can transform your fundraising approach? Visit bridgephilanthropicconsulting.com to learn how we can partner with you.

BPC adheres to the highest ethical standards in its work as members of the Association of Fundraising Professionals, Association of African-American Development Officers, and the Giving Institute.