As the year draws to a close, many clients are thinking about charitable giving—and advisors have a timely opportunity to help them approach it strategically. Donor-Advised Funds (DAFs) continue to be one of the most effective tools for those who want to connect thoughtful philanthropic and tax planning.
As the year draws to a close, many clients are thinking about charitable giving—and advisors have a timely opportunity to help them approach it strategically. Donor-Advised Funds (DAFs) continue to be one of the most effective tools for those who want to connect thoughtful philanthropic and tax planning.
Why now? Upcoming changes to charitable deduction rules
The One Big Beautiful Bill Act (OBBBA) is expected to take effect in 2026, which will introduce new caps, floors, and grantee eligibility considerations to the tax treatment of charitable gifts. For many high-net-worth clients, accelerating DAF contributions before the end of 2025 could lock in more favorable tax treatment under current rules. Advisors can use this window to initiate or expand conversations about year-end giving and long-term philanthropic goals.
Aligning values, taxes, and impact
Beyond their tax advantages, DAFs present a powerful way to unify giving and investing. By aligning a DAF’s investment portfolio with the causes it ultimately supports, advisors can help clients ensure their dollars are working consistently toward their values—avoiding contradictions like funding animal welfare initiatives while holding companies that conduct animal testing.
Flexible gifting
DAFs can also help clients liquidate a range of complex assets beyond appreciated listed securities, including limited partnership interests, real estate, pre-IPO stock, or even cryptocurrencies. Tax implications or values misalignment may compel clients to gift such assets, regardless of their complexity, helping clients repurpose wealth toward lasting impact.
How Ethic supports advisors
At Ethic, we help advisors manage the full DAF lifecycle—from account setup and funding to ongoing, values-aligned portfolio management and transparent reporting that connects financial outcomes to philanthropic goals.
Whether clients are seeking tax efficiency, legacy planning, or a meaningful family giving experience, integrating DAF strategies into broader portfolio discussions allows advisors to deepen relationships and demonstrate a commitment to the person behind the portfolio.
Interested in opening a Donor-Advised Fund?
If you're already an Ethic client, connect with your relationship manager or email clients@ethic.com to get started. If you're new to Ethic, fill out our contact form and our team will be in touch with you shortly.
What’s a Rich Text element?
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
Static and dynamic content editing
A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!
How to customize formatting for each rich text
Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.
.png){kind=spacer}
Ethic Inc. is a Registered Investment Adviser located in New York, NY. Registration of an investment adviser does not imply any level of skill or training. Information pertaining to Ethic Inc’s registration or to obtain a copy of Ethic Inc.’s current written disclosure statement discussing Ethic Inc.’s business operations, services and fees is available on the SEC’s Investment Adviser Public Information website – www.adviserinfo.sec.gov or from Ethic Inc. upon written request at support@ethicinvesting.com. Information provided herein is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Any subsequent, direct communication by Ethic Inc. with a prospective client shall be conducted by a representative of Ethic Inc. that is either registered or qualifies for an exemption or exclusion from registration in the state where a prospective client resides. Information contained herein may be carefully compiled from third-party sources that Ethic Inc. believes to be reliable, but Ethic Inc. cannot guarantee the accuracy of any third-party information.
Ethic Inc. does not render any legal, accounting, or tax advice. Ethic Inc. recommends all investors seek the services of competent professionals in any of the aforementioned areas. Ethic Inc. cannot provide any assurances that any investment strategies, simulations, etc. will perform as described in our materials. ALL INVESTMENTS INVOLVE RISK, ARE NOT GUARANTEED, AND MAY LOSE VALUE. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY.