Bunching Donations in a Donor-Advised Fund

BUNCHING charitable gifts is a way for you to support causes you care about and reduce your tax bill at the same time. By bunching, you may get a tax break if you are close to the standard deduction on your federal taxes.

How Does It Work?

The new tax law doubles the 2018 standard deduction to $12,000 for singles and $24,000 for joint filers younger than age 65 – while capping or eliminating other deductions. These changes mean that it no longer makes sense for many people to itemize their deductions. Bunching enables you to itemize anyway.

Instead of giving directly to causes you support every year, you take two or more years of charitable deductions in a single year and put the money in a donor-advised fund before year-end.

What Are the Benefits?

Giving to a donor-advised fund in one large “bunch” increases your total deductions. When added to your other deductible expenses, you will end up with enough deductions to itemize for that year.

After you give to your donor-advised fund, you may skip giving the next year or two and revert to taking the standard deduction on your federal taxes. Instead of giving directly to the causes you support every year, you direct money from your donor-advised fund to these organizations.

Contact our Foundation staff to find out how you can maximize your impact.

Daniel O. Brandeis, J.D., LL.M.

Daniel O. Brandeis, J.D., LL.M.

Foundation Director

412-992-5220
dbrandeis@jfedpgh.org

Sharon Perelman

Sharon W. Perelman, Esq.

Director of Planned Giving & Associate Foundation Director

412-992-5224
sperelman@jfedpgh.org

Patti Dziekan

Patti Dziekan

Foundation Executive Assistant

412-992-5221
pdziekan@jfedpgh.org

Eric Probola

Eric Probola

Foundation Coordinator

412-992-5216
eprobola@jfedpgh.org