Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

How It Works

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

How It Works

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

How It Works

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

Front-Load Contributions

Front-loads multiple years-worth of charitable contributions to a DAF in a single tax year

Itemized Deduction

Claim an itemized deduction, capitalizing on the larger charitable contribution

Distribute Funds

Distribute money to charity over time while claiming the standard deduction in subsequent years

Front-Load Contributions

Front-loads multiple years-worth of charitable contributions to a DAF in a single tax year

Itemized Deduction

Claim an itemized deduction, capitalizing on the larger charitable contribution

Itemized Deduction

Claim an itemized deduction, capitalizing on the larger charitable contribution

Distribute Funds

Distribute money to charity over time while claiming the standard deduction in subsequent years

How It Works

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

How It Works

Front-Load Contributions

Front-loads multiple years-worth of charitable contributions to a DAF in a single tax year

Itemized Deduction

Claim an itemized deduction, capitalizing on the larger charitable contribution

Distribute Funds

Distribute money to charity over time while claiming the standard deduction in subsequent years

CASE Study

Without Charitable Bunching

A married couple donates $10,000 per year to several different charities. The couple itemizes their taxes each year, using their $10,000 yearly donation to add to their deduction.

Years 1-5 Without Charitable Bunching

Donation

$10,000

State and Local Taxes

+$10,000

Mortgage Interest

+$8,000

Total Yearly Itemized Deduction

=$28,000

Standard Deductable

-$27,700

Additional Deduction

=$300

Total donations over 5 years: $50,000
Total tax deduction over 5 years: $140,000

With Charitable Bunching

A married couple donates $10,000 per year to several different charities. With charitable bunching, the donor is going to contribute $50,000 in year 1 to their DAF. Each year they will grant $10,000 to the causes they support.

Years 1 With Charitable Bunching

Donation

$50,000

State and Local Taxes

+$10,000

Mortgage Interest

+$8,000

Total Yearly Itemized Deduction

=$68,000

Standard Deductable

-$27,700

Additional Deduction

=$40,300

The donor can then claim the standard tax deduction for years 2-5.

Years 2-5 With Charitable Bunching

Donation

$27,700

State and Local Taxes

$110,000

Total donations over 5 years: $50,000
Total tax deduction over 5 years: $178,000

(385) 286-5900

support@uicharitable.org

3507 N University Ave
Suite 125
Provo, UT 84604

©2020-2024 UI Ventures LLC, DBA UI Charitable Advisors. All Rights Reserved.
Portions © 2018-2024 University Impact. All rights reserved.
University Impact is recognized as a tax-exempt public charity as described in Sections
501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. EIN # 82-1504018

(385) 286-5900

support@uicharitable.org

3507 N University Ave
Suite 125
Provo, UT 84604

©2020-2024 UI Ventures LLC, DBA UI Charitable Advisors. All Rights Reserved.
Portions © 2018-2024 University Impact. All rights reserved.
University Impact is recognized as a tax-exempt public charity as described in Sections
501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. EIN # 82-1504018

With Charitable Bunching

A married couple donates $10,000 per year to several different charities. With charitable bunching, the donor is going to contribute $50,000 in year 1 to their DAF. Each year they will grant $10,000 to the causes they support.

Years 1 With Charitable Bunching

Donation

$50,000

State and Local Taxes

+$10,000

Mortgage Interest

+$8,000

Total Yearly Itemized Deduction

=$68,000

Standard Deductable

-$27,700

Additional Deduction

=$40,300

The donor can then claim the standard tax deduction for years 2-5.

Years 2-5 With Charitable Bunching

Donation

$27,700

State and Local Taxes

$110,000

Total donations over 5 years: $50,000
Total tax deduction over 5 years: $178,000

CASE Study

Without Charitable Bunching

A married couple donates $10,000 per year to several different charities. The couple itemizes their taxes each year, using their $10,000 yearly donation to add to their deduction.

Years 1-5 Without Charitable Bunching

Donation

$10,000

State and Local Taxes

+$10,000

Mortgage Interest

+$8,000

Total Yearly Itemized Deduction

=$28,000

Standard Deductable

-$27,700

Additional Deduction

=$300

Total donations over 5 years: $50,000
Total tax deduction over 5 years: $140,000