“Bunching” Your Charitable Giving: A Simple Strategy for Bigger Tax Savings

“Bunching” may not sound glamorous, but it’s a powerful charitable giving strategy that can significantly reduce your tax liability—without changing the total amount you give. For charitably inclined individuals and families, simply adjusting the timing of your donations can enhance the impact of your generosity, both for the causes you care about and for your own financial well-being.

This strategy became especially relevant after the Tax Cuts and Jobs Act (TCJA) of 2017 substantially increased the standard deduction, and it remains important following the One Big Beautiful Bill Act (OBBBA) of 2025, which preserved those higher standard deductions. While OBBBA introduced a $2,000 above-the-line charitable deduction for standard deduction filers, it’s still modest compared to the benefit available through itemizing—making “bunching” a worthwhile consideration for many.

For most taxpayers, taking the standard deduction each year offers simplicity but often eliminates the tax benefit of charitable giving. However, by “bunching” several years’ worth of charitable donations into one year—and skipping or minimizing donations the following year(s)—you can itemize deductions in the high-giving year and revert to the standard deduction in off years. This results in greater overall deductions over time.

A Case Study: Bob and Susan

Consider Bob and Susan, a retired couple who pay $12,000 in state income taxes and $10,000 in property taxes. Their home is paid off (no mortgage interest), and they donate $8,000 each year to various charitable causes.

That gives them $30,000 in itemized deductions—about the same as the current standard deduction for married couples filing jointly. Since their deductions don’t exceed the standard deduction, they receive no additional tax benefit from their charitable giving.

Now, suppose they decide to give $16,000 every other year instead. In the year they donate $16,000, their total itemized deductions rise to $38,000—$8,000 more than the standard deduction. If they’re in the 22% federal tax bracket, that’s a tax savings of approximately $1,760 for that year. The following year, they skip donations and take the standard deduction again.

Importantly, the total amount they donate over time doesn’t change. They’re simply timing their giving more strategically. These tax savings can either be reinvested back into additional charitable giving—or simply kept in your wallet. For even more benefit, some individuals bunch three, four, or even five years of donations into a single tax year, then take the standard deduction in the years that follow.

But What About the Charities?

A valid concern with bunching is the potential impact on smaller charities, such as local churches, which rely on steady year-to-year donations. In these cases, communication is key. If your intent is to give $8,000 annually but you’re donating $16,000 every other year, let the organization know so they can plan accordingly.

For larger nonprofits—such as the American Red Cross, Doctors Without Borders, or the American Cancer Society—donations tend to be absorbed into broader budgets and operations, making timing less impactful.

A more practical solution for maintaining consistent support while still capturing the tax benefits of bunching is to use a Donor-Advised Fund (DAF).

How a Donor-Advised Fund (DAF) Can Help

A Donor-Advised Fund (DAF) allows you to make a large charitable contribution in a single tax year, receive an immediate tax deduction, and then distribute the funds to charities over time according to your preferences. This strategy enables you to maintain a consistent giving pattern to your favorite causes—even as you “bunch” donations for tax purposes. DAFs are easy to establish and offer flexibility, administrative simplicity, and the potential for tax-free investment growth within the fund before the funds are granted to charity.

Final Thoughts

Charitable giving is deeply personal and meaningful. With thoughtful planning, it can also be financially smart. Bunching strategies—and tools like Donor-Advised Funds—allow you to maximize the impact of your giving while optimizing your tax outcome. The resulting tax savings can help you give more over time, or simply preserve more of your wealth.

As always, it’s important to coordinate charitable strategies with your broader financial and tax plan. We recommend working with a tax advisor or financial planner with expertise in charitable giving and retirement income planning.