Charitable bunching: A smart way to maximize your giving & tax deductions

You give because it matters—to your faith, to your community and to the future you’re building. But being generous doesn’t mean you can’t also be strategic. Bunching charitable donations is a smart, proactive way to increase the impact of your giving and generate a tax deduction you might not otherwise have.

If you're looking for a more intentional approach to your generosity, bunching charitable donations into a donor-advised fund (DAF) can help you steward your resources wisely, both for your family and your community.

Charitable bunching, also known as bundling charitable donations, is a tax strategy that involves combining multiple years of charitable contributions into a single tax year. This can help you exceed the threshold needed to itemize deductions and unlock valuable tax benefits.

Here’s why that matters: In 2025, the standard federal tax deduction is $30,000 for married couples filing jointly and $15,000 for individuals. Unless your total deductions exceed that amount, your charitable giving may not offer a tax benefit. Bunching your contributions allows you to give generously while maximizing your deductions in select years.

Charitable bunching isn’t just a tax tactic; it’s a way to continue giving meaningfully in a changed financial landscape. Whether you give monthly, quarterly or annually, bunching your donations into a single year can help you stay generous while being strategic.

One of the most talked-about changes from the 2017 tax reform was the significant increase in the standard federal tax deduction, which made it harder for many people to itemize. These higher thresholds contributed to the growing popularity of charitable bunching—combining two or more years of donations into one to exceed the itemization threshold.

Looking ahead, the One Big Beautiful Bill, effective in 2026, introduces two key updates: a new non-itemizer charitable deduction of up to $1,000 (individual) or $2,000 (joint), and a 0.5% AGI floor for itemized charitable deductions. This means that even if you itemize, only the portion of your giving above 0.5% of your adjusted gross income will be deductible. These changes make charitable bunching—and tools like donor-advised funds—even more valuable for maximizing your tax benefits while supporting the causes you care about.

Charitable bunching isn’t only about tax benefits, it’s about keeping your generosity intentional, consistent and aligned with your values. When done thoughtfully, it can help you give just as much (or more) while unlocking financial advantages that support your overall plan. “Giving to a donor-advised fund has the added benefit of allowing individuals to avoid capital gain by gifting appreciated assets,” adds Molly Petitjean, Charitable Solutions consultant with Thrivent Charitable; “This provides a dual income tax benefit when combined with bunching.”

Whether you're looking to make a bigger impact now or stretch your giving further over time, the benefits are both practical and personal.

Here’s why this strategy resonates with so many generous people:

• Greater tax efficiency: You give the same amount over time, but with better tax outcomes. 
• Continued support for the causes you love: With tools like donor-advised funds, your favorite nonprofits still can receive regular donations. 
• Flexible planning: You can align your giving with high-income years or other tax events (like a business sale or a large bonus). 
• Legacy alignment: This strategy helps you stay generous in a way that fits your long-term financial picture. 

Let’s look at a real-world charitable bunching example from Thrivent Charitable Impact & Investing®:

A couple in their early 60s gives $1,000 each month—a total of $12,000 annually—to their church. They also have $10,000 in other itemized deductions. If they continue to give the same way, their total of $22,000 in deductions falls short of the standard deduction for joint filers.

To increase their impact and qualify for a tax deduction, they set up a donor-advised fund (DAF) and bundled three years of donations into one: $36,000. Combined with their $10,000 in other deductions, they now have $46,000 in itemized deductions—well above the standard threshold.

In years two and three, they take the standard deduction but continue supporting their church from the donor-advised fund. They plan to repeat this cycle every three years to maintain consistent giving and maximize their tax benefit.

Charitable bunching doesn’t have to be complicated. With a little planning, you can take a generous habit you already have and make it even more effective. Here’s a practical step-by-step look at how to bunch charitable contributions in a way that’s both strategic and aligned with your values.

Take stock of how much you typically donate in a year. For example, if you give $10,000 annually to your church and other nonprofits, consider whether you could give two or three years' worth in one year instead.

If your total itemized deductions (including charitable giving, mortgage interest, and medical expenses) won’t exceed the standard deduction, bunching could help. The goal is to surpass the threshold in bunching years so you can itemize.

You don’t have to limit your charitable contributions to cash. In fact, giving non-cash assets can provide even more tax advantages, especially if those assets have appreciated in value. Here are a few common options:

• Long-term appreciated securities (like stocks or mutual funds): By donating these, you may avoid capital gains taxes and deduct the full fair market value. 
• Real estate or farmland: If you’ve held property for more than a year, it can be donated in kind—helping you sidestep capital gains and potentially unlock a sizable deduction. 
• Business interests: If you're approaching a liquidity event, gifting a portion of the business to a donor-advised fund ahead of time can reduce taxes from the sale. 
• Retirement assets: Qualified charitable distributions (QCDs) from IRAs or gifting RMDs (required minimum distributions) also may be options depending on your age and financial plan. 

Choosing the right asset to give can increase both your tax efficiency and the impact of your generosity.

There are a few ways to implement charitable bunching:

• Direct giving: Simply make larger gifts directly to your favorite charities in your bunching year. 
• Donor-advised fund (DAF): Contribute a lump sum to a DAF in your bunching year, claim the full deduction, and then recommend grants to charities over time. This keeps your giving consistent year-to-year even if you’re only taking the deduction in certain years. 

Charitable bunching involves careful planning, especially if you’re combining it with other tax strategies. A financial advisor can help you evaluate timing, amount, and the best way to give—all in line with your values and goals. The amount of your deduction depends on several factors, including the type of asset you donate and how long you’ve owned it.

By working with your financial advisor, you can maximize the tax benefits and preserve more for future giving.

If you regularly give and your itemized deductions fall just short of the standard deduction, charitable bunching may be a good fit. It’s especially useful if:

• You have predictable income and giving patterns 
• You want to make your giving more tax-efficient 
• You want to support your favorite causes consistently, even in years you don’t itemize
• You want to exceed the new 0.5% AGI floor for itemized charitable deductions (starting in 2026)
   

At its heart, charitable bunching isn’t about tax loopholes. It’s about stewardship. It’s about being intentional with your resources—for your family, your community and the generations to come.

Wondering how charitable bunching could fit into your plan? A financial advisor can walk you through the details and help you design a giving strategy that reflects your heart and supports your goals.