ACT for Alexandria

Strategic Giving and Tax Planning with Donor Advised Funds

2018 is the first year under the new tax law and there are changes that could affect how we think about our charitable giving. There have been several articles discussing a strategy called “bunching” that donors should consider as they do any year-end tax planning. Basically, you use your donor advised fund to “bunch” two or three years of charitable contributions in one calendar year to exceed the standard deduction that year. You can then use those assets in your donor advised fund to consistently support your favorite charities, even in years when you take the standard deduction. Remember, an added benefit is the assets in your donor advised fund grow tax-free until you choose to make grants. Click here for an overview of bunching with your donor advised fund or information on how to open a donor advised fund. To discuss how “bunching” might work for you contact betsy.micklem@actforalexandria.org