Giving Strategies Worth Considering
Many of us can point to moments in our Phi Delt experience that changed the course of our lives. A brother who became a lifelong friend. A leadership opportunity that built confidence. A scholarship that eased a financial burden. A chapter experience that helped shape who we became.
For many alumni and friends, charitable giving is a way to ensure those same opportunities remain available for future generations. The Phi Delta Theta Foundation is honored to partner with brothers who want to invest in the future of our Fraternity while exploring charitable giving strategies that may align with their personal and financial goals.
The good news is that meaningful philanthropy does not always begin with a check. Retirement accounts, appreciated investments, real estate, and other assets can sometimes provide opportunities to support the causes you care about while also offering potential tax advantages.
As you think about your philanthropic goals, here are a few common situations that may be worth discussing with your financial, tax, and legal advisors.
You Have an IRA and Are Age 70½ or Older
If you are age 70½ or older, a Qualified Charitable Distribution (QCD) may be one of the most tax-efficient ways to support organizations that are important to you.
A QCD allows eligible funds to be transferred directly from your IRA to a qualified charitable organization, including the Phi Delta Theta Foundation. Because the distribution is generally excluded from taxable income, many donors find it to be an effective way to make charitable gifts and lower your taxable income. A QCD can also count toward your Required Minimum Distribution (RMD), if applicable.
For brothers who already plan to make charitable gifts each year, a QCD may allow those gifts to come directly from IRA assets rather than from after-tax income.
More importantly, it can be a simple way to turn retirement assets into scholarships, leadership programming, educational initiatives, and other opportunities that help strengthen future generations of Phi Delts.
You Inherited an IRA
An inherited IRA presents different planning considerations than inheriting cash or other assets.
Under current law, many non-spouse beneficiaries are required to fully distribute inherited IRA assets within 10 years. Depending on the circumstances, Required Minimum Distributions may also apply during that period. Distributions from a traditional inherited IRA are generally taxable to the beneficiary.
If you are age 70½ or older and have inherited an IRA, you may be eligible to make Qualified Charitable Distributions from that account. If you are younger than 70½, there may be other charitable strategies worth exploring with your advisors.
For some donors, years in which inherited IRA distributions increase taxable income can be a good time to evaluate charitable giving plans. Each situation is different, but coordinating philanthropy with other financial decisions may create opportunities to support causes that matter to you while managing tax obligations thoughtfully.
You Already Plan to Give Over Several Years
Many alumni already know they want to support the organizations and causes that have been meaningful in their lives. The question is often not whether to give, but how and when.
One strategy sometimes discussed with advisors is charitable bunching. Rather than making charitable gifts over several years, a donor may choose to combine multiple years of planned giving into a single tax year.
For example, someone planning to contribute $10,000 annually for five years might instead make a $50,000 charitable gift in one year. The overall philanthropic commitment remains the same, but concentrating those gifts could produce a larger charitable deduction in a year when the donor itemizes deductions.
Beginning in 2026, federal tax law generally requires itemizing taxpayers to exceed a threshold equal to 0.5% of their adjusted gross income before charitable contributions become deductible. As a result, some donors may find that concentrating charitable gifts into certain years helps maximize the potential tax benefits of their giving.
Whether this approach makes sense depends entirely on individual circumstances, but it may be worth discussing with your advisors, particularly if charitable support is already part of your long-term plans.
You Do Not Itemize Your Deductions
Historically, many taxpayers who claimed the standard deduction received no direct federal income tax benefit from charitable giving.
Beginning in 2026, that changes.
Individuals who do not itemize deductions may generally deduct up to $1,000 in qualifying cash charitable contributions. For married couples filing jointly, that amount is generally up to $2,000.
For many Phi Delts, this means charitable gifts can once again provide a federal tax benefit even if itemizing deductions is not part of their tax strategy.
While most donors are motivated by impact rather than tax incentives alone, this change may make it even easier to support programs and initiatives that matter most to you.
You Own Appreciated Stock or Other Property
Cash is not always the most effective asset to give.
Many alumni have built wealth over time through investments, real estate, or other appreciated assets. In some situations, donating those assets directly to charity may be more advantageous than selling them first and donating the cash proceeds.
Depending on the asset and your circumstances, a direct gift of appreciated securities or property may provide a charitable deduction while potentially avoiding some or all of the capital gains taxes that could result from a sale.
Real estate and other complex assets can also create charitable opportunities, though they typically require additional planning and review.
A good question to ask before selling an appreciated asset is:
“Would it make more sense to donate the asset itself rather than sell it and donate the proceeds?”
The answer depends on your particular situation, but it is often a conversation worth having with your advisors.
Start With What You Want to Accomplish
There is no single charitable strategy that is right for everyone.
The most important place to begin is not with taxes. It is with purpose.
Perhaps you want to help a deserving student remain in school. Perhaps you want to invest in leadership development. Perhaps you want to strengthen chapter communities, support educational programming, or leave a legacy that reflects what Phi Delta Theta has meant in your life.
When your charitable goals are clear, the appropriate giving strategy often becomes easier to identify.
The Phi Delta Theta Foundation is honored to partner with brothers and friends who want to make a lasting difference. Working alongside your financial, tax, and legal advisors, we can help explore charitable opportunities that align with your values, your family goals, and your vision for the future.
After all, some of the most meaningful gifts are not measured by what they accomplish today. They are measured by the opportunities they create for generations of brothers yet to come.
This information is provided for educational purposes only and is not intended as tax, legal, or financial advice. Individual circumstances vary, and donors should consult their professional advisors before implementing any charitable giving strategy.
