Crewe Foundation Services

Bunching Charitable Donations in DAF: A Tax Deduction Strategy

As the new year approached, many individuals looked for opportunities to maximize their tax deductions while also supporting causes close to their hearts. One effective strategy that has gained popularity in recent years is known as “bunching” charitable donations in a donor-advised fund (DAF). This strategy allows donors to make larger contributions in certain years, claiming a higher tax deduction, while still being able to support their favorite charitable organizations over time.

Understanding Bunching Donations

Traditional giving patterns often involve making smaller charitable donations on an annual basis. However, the IRS’s standard deduction cap may make it more difficult for people to itemize their deductions, which could result in lost chances to receive tax advantages. Bunching donations is a way to overcome this limitation by making larger gifts in certain years, surpassing the standard deduction threshold, and generating tax advantages.

By donating a substantial amount in a specific year, donors can itemize their deductions, thus reducing their taxable income for that year. Furthermore, by contributing these funds to a donor-advised fund, individuals can benefit from additional tax advantages and distribute the donated amount to charitable organizations over time.

The Role of Donor-Advised Funds (DAFs)

A donor-advised fund is a charitable giving vehicle that allows donors to make tax-deductible donations to a fund managed by a public charity. Donated assets can be invested and grown tax-free within the DAF, giving donors the flexibility to give these funds to charitable organizations of their choice at their discretion.

Benefits of Bunching Donations in a DAF

  1. Increased Tax Deduction: By making charitable donations in a DAF, donors can exceed the standard deduction threshold and claim a higher tax deduction in a specific year. This can result in immediate tax savings, effectively reducing taxable income.
  2. Greater Impact: Consolidating donations into a larger gift allows donors to have a more substantial impact on the causes they care about. By making a single contribution to a DAF, individuals can support multiple charitable organizations over time without the need to distribute funds immediately.
  3. Flexibility and Planning: Donors can make good use of the flexibility that DAFs offer to plan their giving strategy. With Crewe Foundation Services, individuals can work with our team of experts to create a personalized grant plan that aligns with their values and philanthropic goals.

By utilizing the bunching strategy and collaborating with Crewe Foundation Services, individuals can make a meaningful difference in their communities while experiencing the financial advantages that come with tax deductions. Together, we can create a giving plan that leaves a lasting positive impact.

How Crewe Foundation Services Can Help

Crewe Foundation Services excels at providing specific solutions for individuals and families interested in charitable giving. Our team, comprised of experienced professionals, specializes in the planning, establishment, and administration of donor-advised funds (DAFs). We focus on customizing your giving strategy to meet your unique needs.

We offer comprehensive expertise in handling the tax implications, compliance requirements, and grant distribution associated with DAFs. This allows donors to concentrate on the impact of their contributions without the administrative complexities. Our partnership enables donors to make informed decisions about their charitable giving, supporting the causes they are passionate about.

In addition to setting up and managing DAFs, we provide ongoing support in grant management, due diligence, tax reporting, and adherence to state and federal regulations. Our expertise ensures responsible management of donations, maximizes their impact, and guarantees efficient operations.

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The above documents will also be forwarded to you by email.  Please return signed forms via email to or by fax to (801) 563-1971.

You will be contacted by a Crewe Foundation Specialist when your new account has been created and is ready for funding.