Donation bunching
Bunching is concentrating two or more years of charitable giving into a single tax year so itemized deductions clear the standard deduction and the gifts actually reduce your taxes.
Since the standard deduction roughly doubled in 2018, most households no longer itemize — so a steady annual gift often yields no federal tax benefit. Giving two years' worth in one year, then skipping a year, can restore the deduction.
Donor-advised funds pair naturally with bunching: contribute (and deduct) a lump sum this year, then grant it to charities on your own schedule.
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Related terms
- Tax-deductibility — A donation is tax-deductible when the IRS lets the donor subtract it from taxable income — generally true for gifts to 501(c)(3) public charities.
- Donor-advised fund — A donor-advised fund (DAF) is a charitable account held at a sponsoring organization where donors get an immediate tax deduction and later recommend grants to charities over time.
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