Year-End Giving: A Smart Strategy Called “Bunching”

Year-End Giving: A Smart Strategy Called “Bunching”

With fall fully underway, it’s a good time to start thinking about year-end financial planning,
including your charitable giving. Here’s a strategy worth knowing about: it’s called “bunching.”

Since tax law changes back in 2017, fewer people benefit from itemizing deductions each year.
But by combining several years’ worth of planned charitable gifts into a single year, you may be
able to itemize in that year and take the standard deduction in others, potentially saving more
overall.

A donor-advised fund makes this easy. You make one larger gift now and then recommend
grants to your favorite charities over time, on your own schedule.

Two more tips at year-end: giving appreciated stock instead of cash can mean a bigger tax
benefit, and if you’re 70½ or older, you can give directly from your IRA tax-free.

Curious whether bunching through a fund makes sense for you? Community foundations are
happy to help you think it through.

The team at the Community Foundation is honored to serve as a resource as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This content is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.