Women and philanthropy, takeaways from two recent tax rulings, and a business exit case study

Hello! 

Thank you for the opportunity to work together! We love hearing from so many of you throughout the year, and especially as tax time approaches. It is an honor to work with your charitable clients to maximize their community impact as well as their financial and estate planning goals.

As always, the team at the Community Foundation of West Georgia watches trends closely so that we can keep you informed of legal and policy developments that could impact your work with philanthropic individuals and families. We’re happy to share what’s trending.

–Women are increasingly shaping the philanthropic landscape—often as primary financial decision-makers and stewards of family legacy. Whether transitions happen gradually or in the wake of loss, the shift is unmistakable. Discover four practical insights to help you better serve women clients and strengthen the charitable strategies you design together.

–Two recent cases offer a timely reminder: When it comes to charitable deductions and exempt status, technical compliance is everything. Good intentions alone will not carry the day. We’re highlighting what these rulings mean for your client conversations and how proactive guidance can prevent costly missteps.

Thank you for your partnership. Please consider CFWG as your first call whenever the topic of charitable giving comes up during your client meetings. We look forward to our next conversation! 

Kim Jones, President

CFWG

Women and philanthropy: Four insights to inform your practice

At the Community Foundation of West Georgia, we’re honored to work with hundreds of individuals, families, and businesses who support a wide range of charitable causes. The generosity and commitment across generations and demographics inspire our team every single day. 

March is an especially good time to reflect on the evolving role of women in philanthropy because it’s Women’s History Month. Increasingly, women are leading charitable decisions in their families, especially as more women are serving as primary financial decision-makers, according to Indiana University’s Lilly Family School of Philanthropy’s Women Give 2024: 20 Years of Gender & Giving Trends. 

Two scenarios are driving this change:

–In many families, a leadership shift happens gradually. For example, a daughter becomes more engaged over the years in conversations about the family’s charitable giving. Or a spouse who once deferred philanthropic decisions begins to shape priorities more directly. 

–In other cases, the transition is sudden and deeply personal—often following the death of a spouse or parent—when a woman assumes sole responsibility for stewarding both financial assets and charitable intent.

Here are four examples of how your awareness of these trends can play out in your day-to-day practice:

Help your clients give through thick and thin.

According to the Women Give 2024 study, over the past two decades, single women experienced a smaller decline in charitable participation than single men, and their average giving amounts held steadier or increased in certain contexts (e.g., secular causes during COVID-19). Be aware of this trend as you represent single women; it may be a priority for them to continue giving even when times are tough. CFWG can help you develop a charitable giving plan to enable women-led philanthropy to continue through life’s ups and downs.

Discuss national trends and local needs. 

According to the Women’s Philanthropy Institute at Indiana University’s Lilly Family School of Philanthropy, for the first time, between 2022 and 2023, giving to women’s and girls’ organizations surpassed 2% of overall charitable giving. This represents over $11 billion going to women’s and girls’ organizations each year. Note, however, that when adjusted for inflation, the amount actually declined between 2021 and 2023. This trend is worth mentioning to clients, especially with the help of the community foundation team to share parallel local trends and opportunities to make an impact.

Ask about all forms of philanthropy.

According to the 2025 Bank of America Study of Philanthropy: Charitable Giving by Affluent Households, 43% of affluent households volunteered in 2024, up from 37% in 2022—volunteers tend to give more and support causes more deeply, a pattern often stronger among women. Be sure to ask your female clients about causes they support both financially and through volunteerism. 

Tailor advice for single women.

Research shows that participation trends vary by household type, with single women maintaining more consistent giving patterns over long periods. Pay particular attention to building thoughtful charitable giving plans for single women households. The Community Foundation of West Georgia can help maximize both impact and financial planning goals as you serve these clients.

As is the case when you are working with any charitable client, our team is honored to be your partner. Whether your client is establishing a new structure, building a comprehensive strategy around an existing donor-advised or other type of fund, or navigating inherited philanthropic responsibilities, we are here to help ensure their giving reflects both enduring legacy and evolving purpose.

Documentation is no joke and coffee is not milk: Two important tax rulings

At the Community Foundation of West Georgia, we value the role you play in helping individuals and families make the most of their charitable giving. That’s why we’re committed to providing regular updates on legal and policy developments that may impact your clients. 

In two recent rulings, the underlying message is consistent: Courts and the IRS continue to apply the technical requirements governing charitable deductions with precision. Your clients’ good intentions are not enough. 

Strict substantiation: A familiar but critical reminder

Gibson v. Commissioner serves as yet another reminder that it is really important for your clients to substantiate their charitable deductions. Time and again, both the IRS and the Tax Court have disallowed a taxpayer’s deduction because rules were not followed. In Gibson, a married couple claimed nearly $194,000 in noncash charitable contributions related to donated personal property. The court did not dispute that tangible items were transferred to a charitable organization. Instead, the deduction failed because the taxpayers did not satisfy the detailed substantiation requirements—specifically, contemporaneous written acknowledgments and qualified appraisal standards.

No matter how strong a client’s desire to make a difference through charitable donations, technical compliance drives deductibility. Form 8283 thresholds, appraisal rules, and acknowledgment language are not administrative formalities; they are statutory requirements. The Gibson case provides a practical example to share with clients who may be inclined to “drop off” significant in-kind gifts without first consulting their advisory team. 

Here’s the key takeaway: Even though you as an attorney, CPA, or financial advisor may fully understand the importance of following the rules, you still need to remind your clients regularly. You don’t want a client to ask “Why didn’t you tell us?” when they learn the hard way that they should have kept better records. 

Exempt status is not forever

The lesson in Milk Saving Starving Children Foundation v. Commissioner is that if you say you’ve got milk, you’d better have milk! In Milk, the Tax Court upheld the IRS’s revocation of 501(c)(3) status for an organization that failed to operate exclusively for charitable purposes and conferred impermissible private benefits. The organization’s stated mission—to distribute milk—was in fact charitable. Over time, though, its operations drifted away from distributing milk to operating a coffee shop and hosting a golf tournament. 

Here’s why we’re sharing this case:

-The Tax Court’s written opinion in Milk provides a terrific overview of the legal principles behind one of the cornerstones of tax-exempt status: a charity’s ongoing activities must further its exempt purposes. As you bring new attorneys, CPAs, and financial advisors into your practice, the Milk case is simply terrific for training purposes. 

-As it applies to your client work, remember the Milk case when a client expresses interest in supporting a lesser-known or newly formed organization. Please reach out to the community foundation in these instances because our team can provide insight on any charitable organization, whether well-established or new—and offer safeguards through field-of-interest funds and other vehicles.

Thank you for the opportunity to work together to serve your charitable clients! Our goal, as always, is to serve as a practical resource—helping you ensure that your clients’ charitable intentions are fulfilled with clarity, compliance, and confidence.

The team at the Community Foundation of West Georgia is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.