Giving to charity can support causes you care about, but it does not always translate into meaningful tax savings. That is why some households use a strategy called charitable donation bunching, which involves combining several years of donations into one tax year to potentially unlock larger deductions. As tax rules change and itemized deduction limits become more important, bunching may become an increasingly valuable way for donors to maximize both their charitable impact and their tax efficiency.

A financial advisor can help you determine whether bunching makes sense for your tax situation and structure your giving to get the most out of it.

How Charitable Donation Bunching Works

Charitable donation bunching is a tax strategy that involves concentrating multiple years’ worth of charitable contributions into a single tax year. The goal is to increase your total itemized deductions in that year so they exceed the standard deduction, potentially lowering your taxable income. In the years when you do not bunch donations, you can simply claim the standard deduction instead.

Many taxpayers no longer itemize deductions because the standard deduction is relatively high. By combining two or more years of planned giving into one year, taxpayers may create enough deductible expenses, including mortgage interest, state and local taxes and charitable gifts, to make itemizing worthwhile. Then, the next year, they can still deduct up to $1,000 ($2,000 if married filing jointly) while taking the standard deduction.

For example, let’s break down the example of a married couple who normally donates $8,000 to charity each year and has another $18,000 in itemized deductions. In a typical year, their total deductions would be $26,000, which falls below the 2026 standard deduction of $32,200 for married couples filing jointly. Instead, they could donate $16,000 in one year, raising their itemized deductions to $34,000 and creating a larger tax benefit for that year. In the following year, with no bunched donation, they take the standard deduction but can still claim up to $2,000 as a charitable deduction without itemizing.

To see how this strategy plays out over a full two-year cycle, let’s compare it to donating the same amount annually. In any year where the standard deduction is taken, both scenarios include the $2,000 non-itemizer charitable deduction available to married couples filing jointly. Using the same married couple above, here is how a two-year cycle compares to donating $8,000 every year:

	Annual Giving (Year 1 + Year 2)	Bunching Strategy (Year 1 + Year 2)
Charitable donations	$8,000 + $8,000 = $16,000	$16,000 (Yr 1) + $0 (Yr 2) = $16,000
Other itemized deductions	$18,000 each year	$18,000 each year
Total deductions claimed	$34,200 + $34,200 = $68,400 (standard + $2,000 charitable both years)	$34,000 (itemized, Yr 1) + $34,200 (standard + $2,000 charitable, Yr 2) = $68,200
Additional deduction vs. standard	$2,000 both years	$1,800 in Year 1**, $2,000 in Year 2**

Over two years, the two scenarios produce nearly identical total deductions in this example, with annual giving at $68,400 and bunching at $68,200. The $200 difference reflects the modest baseline deductions used here. The bunching strategy produces its greatest advantage when baseline deductions are closer to the standard deduction threshold, making the itemized year significantly more valuable.

Take note: This example uses modest baseline deductions. The benefit of bunching grows significantly when other itemized deductions such as mortgage interest and state and local taxes bring the total closer to the standard deduction threshold before charitable contributions are added.

Who Benefits From Bunching

Charitable donation bunching tends to benefit taxpayers whose itemized deductions fall close to the standard deduction amount. If your yearly deductions are only slightly below the threshold, combining multiple years of charitable contributions into one year could push your deductions high enough to make itemizing worthwhile. This can create larger tax savings than claiming the standard deduction every year, even with the additional $1,000 charitable donation deduction.

For example, a household that consistently gives to charity, pays mortgage interest and deducts state and local taxes may already be close to the limit. Bunching donations into alternating years can help maximize deductions in one year while still allowing the taxpayer to use the standard deduction in the next.

High-income earners may also benefit from bunching because deductions can be more valuable when taxable income is higher. Someone receiving a large bonus, exercising stock options or selling a business may look for strategies to reduce taxable income during that year. Increasing charitable deductions through bunching can help offset part of that tax liability.

Retirees often use bunching alongside other tax-planning strategies, especially in years when income temporarily increases. For example, required minimum distributions, large withdrawals from retirement accounts or one-time asset sales can push retirees into a higher tax bracket. Bunching charitable contributions in those years may help reduce taxable income.

Families with long-term charitable goals may benefit from bunching because it encourages more intentional giving. Instead of making smaller annual donations without a tax advantage, they can plan larger contributions around years when deductions provide the greatest benefit. This can improve tax efficiency without reducing overall charitable support.

How to Execute a Charitable Bunching Strategy

Bunching works best when planned in advance rather than decided at year-end. Here are five general steps to consider:

• Calculate your baseline deductions. Add up your expected mortgage interest, state and local taxes and any other itemized deductions for the year, excluding charitable contributions. This is your starting point.
• Identify your bunching year. If your baseline deductions are close to but below the standard deduction, a bunching year is one where you contribute two or more years of planned giving at once to push total deductions above the standard deduction threshold.
• Determine your contribution amount. Subtract your baseline deductions from the standard deduction to find how much in charitable contributions you need to make itemizing worthwhile. Any amount above that creates an additional tax benefit.
• Consider a donor-advised fund. Contributing to a DAF lets you take the full deduction in the bunching year while distributing funds to your chosen charities over time. This is particularly useful if you want to maintain consistent giving but concentrate the tax benefit. You can also contribute appreciated assets like stocks to a DAF, potentially avoiding capital gains taxes while still claiming the full fair market value as a deduction.
• Make the contribution before December 31. Charitable deductions apply to the tax year in which the contribution is made. Timing matters, especially for bunching years where you are combining multiple years of giving.

Keep in mind that the IRS limits cash deductions to public charities to 60% of AGI, with lower limits for DAFs and appreciated non-cash assets. In off-years when you take the standard deduction, routine charitable giving generally does not produce a tax deduction, which is the tradeoff the bunching strategy is designed to work around.

2026 Tax Law Changes That Make Bunching More Important

New tax laws tied to the One Big Beautiful Bill Act (OBBBA) will up the value of charitable donation bunching. In 2026, eligible charitable contributions must exceed 0.5% of taxpayers’ adjusted gross income (AGI). ¹ That means smaller annual donations may no longer generate much of a deduction for higher earners. As a result one larger, bunched contribution that clears the new threshold produces a more meaningful deduction.

To calculate your AGI floor, multiply your AGI by 0.005. Here is what that looks like at common income levels:

AGI	0.5% Floor	Minimum donation before deduction applies
$100,000	$500	$500
$200,000	$1,000	$1,000
$300,000	$1,500	$1,500
$500,000	$2,500	$2,500

Only the amount above this floor counts toward your deduction. A donor with $200,000 AGI who gives $5,000 in a single year can deduct $4,000, not the full $5,000. Bunching helps clear this floor more decisively by concentrating giving into a single year.

Bunching can help taxpayers overcome the new AGI floor by concentrating charitable gifts into a single tax year. For example, someone with a $200,000 AGI would need donations above $1,000 before any charitable deduction begins to count under the new rules. By doubling or tripling planned giving into one year, donors may create a larger deduction while still taking the standard deduction in alternate years. In off-years, they can still claim the non-itemizer charitable deduction of up to $1,000 ($2,000 if married filing jointly) on top of the standard deduction if that produces a better outcome than itemizing.

The strategy may become especially important for taxpayers who already hover near the standard deduction threshold. Rising standard deduction amounts in 2026 could make it harder for many households to benefit from itemizing. ² This increases the appeal of alternating between itemized and standard deductions through bunching.

The 2026 rules may also reduce the value of itemized deductions for some high-income taxpayers. New limits are expected for people in the top tax bracket. These cap the tax benefit of itemized deductions, including charitable contributions. This could encourage affluent donors to become more strategic about when and how they give.

How a Donor-Advised Fund Can Benefit Bunching

Donor-advised funds (DAFs) make the mechanics of bunching easier to manage. You contribute a large amount in a single tax year, claim the deduction immediately and then distribute grants to your chosen charities over time at whatever pace works for you. This separates the tax decision from the giving decision, so you do not have to identify every recipient upfront or distribute everything in the bunching year.

DAFs also accept appreciated assets like stocks or mutual funds. Contributing securities directly avoids capital gains taxes while still allowing you to claim a deduction based on the full fair market value at the time of contribution.

Contribution limits and eligibility rules apply, and the strategy works differently depending on your income, filing status and overall deduction picture. A tax professional or financial advisor can help you determine whether a DAF fits your situation before you move forward.

Bottom Line

Charitable donation bunching can help taxpayers maximize deductions by concentrating multiple years of giving into a single tax year. The strategy may be especially useful for households that fluctuate around the standard deduction threshold. High-income earners, and retirees looking to reduce taxable income in peak earning years, could also see benefits. New limits on some charitable deductions increase the importance of itemizing strategically. These changes will make bunching an even more valuable planning tool in years to come.

Tax Planning Tips

• A financial advisor can model your deductions across a two-year bunching cycle and show you when and how much to give for the greatest tax benefit. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Bunching is one of several charitable giving strategies worth considering when planning how to maximize the tax benefit of your donations. Here are other strategies that may work alongside or instead of bunching depending on your situation.

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