If You Give to Charity, ‘Bunching’ Could Save You Thousands

This simple tax strategy, using a donor-advised fund (DAF), lets taxpayers who don’t normally qualify for itemized deductions access the charitable deduction.

A young boy stands in a field of flowers and holds out a bouquet.
(Image credit: Getty Images)

Are you one of the 60 million generous households in America that give to charity each year? If so, you might be missing out on one of the best tax deductions in the tax code. Fortunately, there is a simple strategy that can help save you thousands of dollars when you file your taxes for 2023 — it’s called bunching.

In 2017, the Tax Cuts and Jobs Act roughly doubled the standard deduction through 2025. But while this large deduction helped lower taxes for millions of households, it also made it more difficult to qualify for a lot of common individual tax deductions, including one that is near and dear to the hearts of many — the tax deduction for charitable giving.

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Adam Nash
Co-Founder and CEO, Daffy.org

Adam Nash is the co-founder & CEO of Daffy.org, the Donor-Advised Fund for You™, an innovative, fast-growing platform for charitable giving. With no minimum to get started, industry-low fees and ground-breaking technology, Daffy brings the donor-advised fund back to its original goal of helping people be more generous, more often. Adam has served as an executive, angel investor and adviser to some of the most successful technology companies to come out of Silicon Valley. He is currently on the Board of Directors for Acorns, the country’s fastest-growing financial wellness system, and Shift Technologies.