A Bunch of Benefits
Nov. 28, 2023
By strategically bunching charitable contributions, donors can reach their giving goals while maximizing year-end charitable tax deductions. Incorporating bunching into your end-of-year giving strategy can be a tax-wise way to amplify your impact on the causes you care about.
Donors can “bunch” charitable contributions into a personalized Donor Advised Funds (DAFs) in one calendar year, ensuring they will have enough charitable donations to exceed the standard deduction. Donors can then direct the dollars in their DAF over time, so the causes and communities they love can receive their generous support now and in the future.
Benefits of bunching through a Community Foundation DAF:
- Maximize Impact: Bunch your giving in a single year to itemize taxes, but then make grants to causes you care about over time or as needs arise. This opportunity allows you to consider where and when you want to offer charitable support in a personal and flexible way.
We also have the ability to use noncash assets to maximize your impact. Many donors grab their checkbook when giving to nonprofits, but there may be other significant assets already in your portfolio that offer more tax-wise giving opportunities. Assets such as:
- Appreciated securities
- Grain or livestock
- Real estate
- And more
- Endow Iowa: If you contribute to an Endow Iowa qualified donor advised fund, tax benefits can be even greater. In addition to the federal deduction, donors qualify for a 25% state tax credit as they support causes they care about in our state.
- Giving Made Simple: Our team is here to work alongside you in creating a simplified approach to giving. Whether accepting multiple stock transfers or facilitating charitable conversations with your trusted professional advisors, we look forward to helping meet your financial and charitable goals.
To take advantage of this personal approach to meeting your giving goals in tax-wise ways, contact us to learn more.