However, by using a Donor Advised Fund (DAF) and a tax-smart strategy called charitable bunching, you can maximize your deductions and make an even greater impact with your giving.

What Is Charitable Bunching?

Charitable bunching is a strategy where donors "bunch" multiple years’ worth of contributions into a single tax year to exceed the standard deduction and qualify for itemized deductions.

Rather than donating the same amount every year, you can contribute a larger amount every third year to a Donor Advised Fund (DAF). This allows you to itemize your deductions in the contribution year while taking the standard deduction in the off-years.

How Does It Work?

Let’s say a married couple typically donates $10,000 annually to charity. Under normal tax rules, their deductions might not exceed the new standard deduction of $30,000, so their giving provides no additional tax benefit.

Instead, using a charitable bunching strategy, they can:

• Triple their donation in a single year, contributing $30,000 to a DAF
• Itemize their deductions that year, significantly lowering taxable income
• Continue to support their favorite charities through grants from their DAF
• Take the standard deduction the next 2 tax years until its time to replenish their DAF

Tax Benefits of Charitable Bunching

✅ Increase Your Tax Deductions – Every third year, you can itemize and maximize your tax savings.

✅ Maintain Steady Giving – Your favorite charities continue receiving support each year.

✅ Maximize Tax-Free Growth – Funds in a DAF can be invested and potentially grow, increasing your giving power.

✅ Simplify Record-Keeping – Instead of tracking multiple small donations, you handle one major donation every few years.

For example, under the bunching strategy, donors using a DAF received $18,000 in additional tax deductions every third year—a significant financial advantage.

Who Should Consider Charitable Bunching?

You may benefit from this strategy if you:

• Typically donate a significant amount annually
• Have itemized deductions that are near or below the standard deduction
• Want to maximize tax savings while continuing to support charities long-term

Start Giving Smarter Today

At Truman Heartland Community Foundation, we help donors strategically maximize their charitable giving through Donor Advised Funds and charitable bunching. Learn more details with our Printable Charitable Bunching Guide.

Want to learn how a DAF can work for you? Contact Cole Eason, Vice President of Advancement, at 816.912.4182 or eason@thcf.org for a consultation.

By "giving smart," you can reduce your tax burden while increasing your impact—a true win-win! For more details, visit www.THCF.org or call 816.836.8189 today.