Charitable Bunching

Charitable Bunching

A Tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about

A Tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about

OUR PROCESS

How it Works

01

Front-Load

Contributions

Front-loads multiple years-worth of

charitable contributions to a DAF in

a single year.

02

Itemized

Deduction

Claim an itemized deduction,

capitalizing on the larger charitable

contribution.

03

Distribute

Funds

Distribute money to charity over

time while claiming the standard

deduction in subsequent years.

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

How It Works

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

How It Works

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

How It Works

Charitable Bunching

A tax efficient strategy that leverages DAFs to reduce taxable income while leaving clients with more money to support causes they care about.

Front-Load Contributions

Front-loads multiple years-worth of charitable contributions to a DAF in a single tax year

Itemized Deduction

Claim an itemized deduction, capitalizing on the larger charitable contribution

Distribute Funds

Distribute money to charity over time while claiming the standard deduction in subsequent years

Front-Load Contributions

Front-loads multiple years-worth of charitable contributions to a DAF in a single tax year

Itemized Deduction

Claim an itemized deduction, capitalizing on the larger charitable contribution

Itemized Deduction

Claim an itemized deduction, capitalizing on the larger charitable contribution

Distribute Funds

Distribute money to charity over time while claiming the standard deduction in subsequent years

How It Works

OUR PROCESS

When is Charitable Bunching

a Good Fit?

When Donors consistently engage in

charitable giving every year.

When Donors recieved a large amount of

one-off taxable income in a given year.

CASE STUDY

Without Charitable Bunching

A married couple donates $10,000 per year to several different charities. The couple itemizes their taxes each year, using their $10,000 yearly donation to add to their deduction.

Years 1-5 Without Charitable Bunching

Donation

$10,000

State and Local Taxes

+$10,000

Mortgage Interest

+$8,000

Total Yearly Itemized Deduction

=$28,000

Standard Deductable

-$27,700

Additional Deduction

=$300

Total Donations Over 5 Years

$50,000

Tax Deduction Over 5 Years

$140,000

CASE Study

With Charitable Bunching

A married couple donates $10,000 per year to several different charities. With charitable bunching, the donor is going to contribute $50,000 in year 1 to their DAF. Each year they will grant $10,000 to the causes they support.

1 Year With Charitable Bunching

Donation

$50,000

State and Local Taxes

+$10,000

Mortgage Interest

+$8,000

Total Yearly Itemized Deduction

=$68,000

Standard Deductable

-$27,700

Additional Deduction

=$40,300

Years 2-5 With Charitable Bunching

Donation

$27,700

State and Local Taxes

$110,000

Total Donations Over 5 Years

$50,000

Tax Deduction Over 5 Years

$178,000

(385) 286-5900

support@uicharitable.org

3507 N University Ave
Suite 125
Provo, UT 84604

©2020-2024 UI Ventures LLC, DBA UI Charitable Advisors. All Rights Reserved.
Portions © 2018-2024 University Impact. All rights reserved.
University Impact is recognized as a tax-exempt public charity as described in Sections
501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. EIN # 82-1504018

(385) 286-5900

support@uicharitable.org

3507 N University Ave
Suite 125
Provo, UT 84604

©2020-2024 UI Ventures LLC, DBA UI Charitable Advisors. All Rights Reserved.
Portions © 2018-2024 University Impact. All rights reserved.
University Impact is recognized as a tax-exempt public charity as described in Sections
501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. EIN # 82-1504018

With Charitable Bunching

A married couple donates $10,000 per year to several different charities. With charitable bunching, the donor is going to contribute $50,000 in year 1 to their DAF. Each year they will grant $10,000 to the causes they support.

Years 1 With Charitable Bunching

Donation

$50,000

State and Local Taxes

+$10,000

Mortgage Interest

+$8,000

Total Yearly Itemized Deduction

=$68,000

Standard Deductable

-$27,700

Additional Deduction

=$40,300

The donor can then claim the standard tax deduction for years 2-5.

Years 2-5 With Charitable Bunching

Donation

$27,700

State and Local Taxes

$110,000

Total donations over 5 years: $50,000
Total tax deduction over 5 years: $178,000

CASE Study

Without Charitable Bunching

A married couple donates $10,000 per year to several different charities. The couple itemizes their taxes each year, using their $10,000 yearly donation to add to their deduction.

Years 1-5 Without Charitable Bunching

Donation

$10,000

State and Local Taxes

+$10,000

Mortgage Interest

+$8,000

Total Yearly Itemized Deduction

=$28,000

Standard Deductable

-$27,700

Additional Deduction

=$300

Total donations over 5 years: $50,000
Total tax deduction over 5 years: $140,000