If you’re confused about the new tax laws, you’re not alone. Along with your professional advisor, the Community Foundation can help you navigate the new landscape and make tax-smart decisions when it comes to your giving.

Bunching is one way to give to your favorite nonprofits and save on taxes. Bunching means that you combine several years of donations into one larger gift in a single year. This approach became more common after the standard deduction doubled in 2018, which made it harder for most people to itemize deductions and get tax benefits for charitable giving each year. For example, someone who donates $10,000 annually wouldn’t get a tax break in each of those years if their annual standard deduction is $15,000. That’s where opening a Donor Advised Fund (DAF) at CFAAC comes in. Instead of continuing to spread out donations, you can “bunch” multiple years of giving into one larger donation to your DAF, in this scenario making one $40,000 donation to cover four years of giving. Then, your fund can distribute your planned $10,000 annual contributions over four years to your favorite charities. The nonprofits receive the same annual support and you get a larger tax benefit upfront.

The new tax rules coming in 2026 make bunching even more beneficial. The new rules raise the standard deduction again and introduce new limits, like a “charitable floor” that may impact deductions on smaller contributions. Bunching makes it easier to increase your tax savings by allowing you to make one large, tax-deductible contribution now and distribute the funds to your favorite nonprofits over time. Still have questions? Call us at 410.280.1102. We are always happy to work with you and your professional advisors to create a meaningful and tax-savvy philanthropic plan.