Accounting
Donor advised funds’ tax benefits shown by client scenarios
Financial advisors and
Those three scenarios show in part why donor-advised funds have amassed
The other reasons for
In his presentation, Nash compared donor-advised funds to other types of tax-advantaged accounts that have evolved into pivotal roles as part of clients’ long-term financial plans over recent decades, like individual retirement accounts, 401(k) plans and 529 college savings plans.
“A donor-advised fund is basically the perfect account for putting money aside for charity,” Nash said. “You can put money or assets into the account, and you get an immediate tax deduction this year against income when you put the assets in the account. The accounts have investment options — some more than others — but your money is invested tax-free for as long as you want it to compound. And then any time you want to give money to an operating charity — it could just be a few clicks and that money gets sent off and taken care of.
“And it’s not surprising that, even at the very high end, a lot of people are thinking about,” Nash added, “‘Do I really need to set up a foundation? Do I really need to set up a trust? I can just use a donor-advised fund to handle the philanthropy needs, the back end and the back office for my clients.”
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The three examples Nash laid out in his talk displayed the possible role of donor-advised funds in a client’s portfolio.
The sale of a stock that has risen in value or the spinoff of a part of a small business or another “positive event” can bring capital gains and income — along with accompanying taxes in a particular year, he noted. The donor-advised fund can help advisors and their clients offset those gains.
“If you have a windfall, you can immediately say, ‘Hey, put that money, put some of those assets into a donor-advised fund and take your time evaluating organizations and thinking about who you want to give that money to,” Nash said. “Maybe you can put aside money that’s good enough to support your giving, not just for one year, five years, 10 years — build a real legacy for you and your family or for your business. And so this is the most common reason that advisors fall in love with donor-advised funds.”
Regular gifts of assets to donor-advised funds at any time can bring a bigger tax advantage than donating cash, and the structure enables advisors and their clients to send stocks, ETFs or even digital holdings like cryptocurrency to organizations that may not have the capacity to receive non-cash contributions directly.
“Let’s say they give $30,000 to charity every year,” Nash said. “If you can just tell them, instead of taking that cash and giving it to the charity, to actually put the stock in a donor-advised fund, get those tax benefits, then they can give that cash to those charities, the same as they always did, but save money on taxes. And here’s the kicker, for people who care about this stuff, there is no wash-sale rule with donations, right? You can donate the shares out of their account to the donor-advised fund that had the lowest cost basis and then, literally, a millisecond later, you can take the cash that they would have given to charity and use it instead to replenish their investment account with higher cost-basis shares. So you permanently eliminate that tax liability.”
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Portfolio rebalancing may also present some “unforgiving” numbers when it comes to the “tax draft” of selling off one category of assets that took on unexpectedly high values in order to buy more investments in a lower-valued type of security, Nash pointed out.
“What if, instead of selling those appreciated shares, you actually donate some of those shares to a donor-advised fund, and then you use the cash that you would have used to rebalance the portfolio to buy up the underrepresented asset in the portfolio,” he said. “So you’re just moving the same amount of money around, but by having a donor-advised fund to capture that tax benefit of those appreciated securities, you just eliminate that liability.”
Advisors and their clients can choose among many donor-advised fund providers that are operating in the space, but Nash’s firm is making its pitch based on newer technology tools, the capacity for clients to add other family members and advisors to their accounts and flat-fee price points between $3 and $20 a month.
Its name, Daffy, stands for “donor-advised funds for you,” Nash noted. Last year, the firm launched a tool for matching campaigns, such as one that Nash shared with Future Proof attendees in which a widower started a fund in honor of his late wife.
“It’s very personal, and the organizer, the person running the campaign, can pick up to six charities to support and let their donors pick amongst them, and then the matching just automatically happens within minutes every time someone makes a donation in a campaign,” Nash said. “They’re not just giving to the organization. They’re supporting the organization, and they bring new people into the community — which is what the charities really want, is more and more exposure to people who care about their cause.”
Jody Padar, an author and speaker known as “The Radical CPA,” and Katie Tolin, a growth strategist for CPAs, together launched a training and technology platform called XcelLabs.
XcelLabs provides solutions to help accountants use artificial technology fluently and strategically. The Pennsylvania Institute of CPAs and CPA Crossings joined with Padar and Tolin as strategic partners and investors.
“To reinvent the profession, we must start by training the professional who can then transform their firms,” Padar said in a statement. “By equipping people with data and insights that help them see things differently, they can provide better advice to their clients and firm.”
The platform includes XcelLabs Academy, a series of educational online courses on the basics of AI, being a better advisor, leadership and practice management; Navi, a proprietary tool that uses AI to help accountants turn unstructured data like emails, phone calls and meetings into insights; and training and consulting services. These offerings are currently in beta testing.
“Accountants know they need to be more advisory, but not everyone can figure out how to do it,” Tolin said in a statement. “Couple that with the fact that AI will be doing a lot of the lower-level work accountants do today, and we need to create that next level advisor now. By showing accountants how to unlock patterns in their actions and turn client conversations into emotionally intelligent advice, we can create the accounting professional of the future.”
“AI is transforming how CPAs work, and XcelLabs is focused on helping the profession evolve with it,” PICPA CEO Jennifer Cryder said in a statement. “At PICPA, we’re proud to support a mission that aligns so closely with ours: empowering firms to use AI not just for efficiency, but to drive growth, value and long-term relevance.”
The accountant the world urgently needs has evolved far beyond the traditional role we recognized just a few years ago.
The transformation of the accounting profession is not merely an anticipated change; it is a pressing reality that is currently shaping business decisions, academic programs and the expected contributions of professionals. Yet, in many areas, accounting education stubbornly clings to outdated, overly technical models that fail to connect with the actual demands of the market. We must confront a critical question: If we continue to train accountants solely to file tax reports, are we truly equipping them for the challenges of today’s world?
This shift in mindset extends beyond individual countries or educational systems; it is a global movement. The recent announcement of the
The CIMA/CGMA proposal for 2026 is not just a curriculum update; it is a powerful manifesto. This new program positions analytical thinking, strategic business partnering and technology application at the core of accounting education. It unequivocally highlights sustainability, aligning with IFRS S1 and S2, and expands the accountant’s responsibilities beyond mere numbers to encompass conscious leadership, environmental impact and corporate governance.
The current changes in the accounting profession underscore an urgent shift in expectations from both educators and employers. Today, companies of all sizes and industries demand accountants who can do far more than interpret balance sheets. They expect professionals who grasp the deeper context behind the numbers, identify inconsistencies, anticipate potential issues before they escalate into losses, and act decisively as a bridge between data and decision making.
To meet these expectations, a radical mindset shift is essential. There are firms still operating on autopilot, mindlessly repeating tasks with minimal critical analysis. Likewise, many academic programs continue to treat accounting as purely a technical discipline, disregarding the vital elements of reflection, strategy and behavioral insight. This outdated approach creates a significant mismatch. While the world forges ahead, parts of the accounting profession remain stuck in the past.
The consequences of this shift are already becoming evident. The demand for compliance, transparency and sustainability now applies not only to large corporations but also to small and mid-sized businesses. Many of these organizations rely on professionals ill-equipped to drive the necessary changes, putting both business performance and the reputation of the profession at risk.
The positive news is that accountants who are ready to thrive in this new era do not necessarily need additional degrees. What they truly need is a commitment to awareness, a dedication to continuous learning, and the courage to step beyond their comfort zones. The future of accounting is here, and it is firmly rooted in analytical, strategic and human-oriented perspectives. The 2026 curriculum is a clear indication of the changes underway. Those who fail to think critically and holistically will be left behind.
In contrast, accountants who see the big picture, understand the ripple effects of their decisions, and actively contribute to the financial and ethical health of organizations will undeniably remain indispensable, anywhere in the world.
Congressional Republicans are siding with Donald Trump in the messy divorce between the president and Elon Musk, an optimistic sign for eventual passage of a tax cut bill at the root of the two billionaires’ public feud.
Lawmakers are largely taking their cues from Trump and sticking by the $3 trillion bill at the center of the White House’s economic agenda. Musk, the biggest political donor of the 2024 cycle, has threatened to help primary anyone who votes for the legislation, but lawmakers are betting that staying in the president’s good graces is the safer path to political survival.
“The tax bill is not in jeopardy. We are going to deliver on that,” House Speaker Mike Johnson told reporters on Friday.
“I’ll tell you what — do not doubt, don’t second guess and do not challenge the President of the United States Donald Trump,” he added. “He is the leader of the party. He’s the most consequential political figure of our time.”
A fight between Trump and Musk exploded into public view this week. The sparring started with the tech titan calling the president’s tax bill a “disgusting abomination,” but quickly escalated to more personal attacks and Trump threatening to cancel all federal contracts and subsidies to Musk’s companies, such as Tesla Inc. and SpaceX which have benefitted from government ties.
Republicans on Capitol Hill, who had — until recently — publicly embraced Musk, said they weren’t swayed by the billionaire’s criticism that the bill cost too much. Lawmakers have refuted official estimates of the package, saying that the tax cuts for households, small businesses and politically important groups — including hospitality and hourly workers — will generate enough economic growth to offset the price tag.
“I don’t tell my friend Elon, I don’t argue with him about how to build rockets, and I wish he wouldn’t argue with me about how to craft legislation and pass it,” Johnson told CNBC earlier Friday.
House Budget Committee Chair Jodey Arrington told reporters that House lawmakers are focused on working with the Senate as it revises the bill to make sure the legislation has the political support in both chambers to make it to Trump’s desk for his signature.
“We move past the drama and we get the substance of what is needed to make the modest improvements that can be made,” he said.
House fiscal hawks said that they hadn’t changed their prior positions on the legislation based on Musk’s statements. They also said they agree with GOP leaders that there will be other chances to make further spending cuts outside the tax bill.
Representative Tom McClintock, a fiscal conservative, said “the bill will pass because it has to pass,” adding that both Musk and Trump needed to calm down. “They both need to take a nap,” he said.
Even some of the House bill’s most vociferous critics appeared resigned to its passage. Kentucky Representative Thomas Massie, who voted against the House version, predicted that despite Musk’s objections, the Senate will make only small changes.
“The speaker is right about one thing. This barely passed the House. If they muck with it too much in the Senate, it may not pass the House again,” he said.
Trump is pressuring lawmakers to move at breakneck speed to pass the tax-cut bill, demanding they vote on the bill before the July 4 holiday. The president has been quick to blast critics of the bill — including calling Senator Rand Paul
As the legislation worked its way through the House last month, Trump took to social media to criticize holdouts and invited undecided members to the White House to compel them to support the package. It passed by one vote.
Senate Majority Leader John Thune — who is planning to unveil his chamber’s version of the bill as soon as next week — said his timeline is unmoved by Musk.
“We are already pretty far down the trail,” he said.
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