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
When is Charitable Bunching a Good Fit?
When donors consistently engage in charitable giving every year
When donor receives a large amount of one-off taxable income in a given year
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
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
When is Charitable Bunching a Good Fit?
When donors consistently engage in charitable giving every year
When donors consistently engage in charitable giving every year
When donor receives a large amount of one-off taxable income in a given year
When donor receives a large amount of one-off taxable income in a given year