Over the past several years, one quiet shift has changed how charitable giving shows up on a tax return.
Fewer households are itemizing.
With the standard deduction now exceeding $30,000 for married couples, many donors who historically itemized no longer do. The result is simple: annual charitable gifts often don’t create incremental tax benefits the way they once did.
That doesn’t mean the value of giving has changed. It just means the strategy needs to.
A simple shift: “bunching” your giving
Bunching is a straightforward concept with meaningful upside.
Instead of making the same charitable contribution every year, you combine two or more years of giving into a single tax year, allowing you to itemize in that year and take the standard deduction in others.
The outcome: greater cumulative tax deductions over time—without increasing your total giving.
Why this works
Tax efficiency comes down to thresholds.
If your total deductions fall just below the standard deduction each year, you receive no incremental tax benefit from itemizing. But by concentrating your giving into one year, you can push your deductions above that threshold.
The missing piece: timing vs. impact
The most common hesitation we hear is whether nonprofits will receive less consistent support.
Using a donor-advised fund, you can separate the tax decision from the charitable impact:
- Contribute a larger amount in one year
- Recommend grants over time
You maintain consistency while gaining flexibility and efficiency.
When it’s worth exploring
Bunching tends to be most effective if:
- Your annual deductions are close to the standard deduction
- You have variability in income
- You want to front-load giving in a high-income year
- You are open to using a donor-advised fund
A more intentional approach to philanthropy
Thoughtful giving is not just about how much you give, but how you structure it.
Bunching is one way to align your philanthropy with your overall financial strategy.
For those interested in taking a more strategic and tailored approach to philanthropy, the Rancho Santa Fe Foundation offers personalized guidance designed to align your charitable goals with your broader financial planning.
Through thoughtful conversations and customized solutions, we work closely with individuals and families to explore strategies such as donor-advised funds and tax-efficient giving approaches like bunching.
We invite you to connect with our team to explore how a more intentional and personalized giving strategy can elevate your impact by contacting us at connect@rsffoundation.org.
