Quick Answer
Yes, bunching charitable donations into alternating years can significantly increase your tax savings. If you normally donate $8,000 annually but your total itemized deductions are only $25,000 (below the $30,000 standard deduction for married couples), bunching two years of donations ($16,000) could save you an extra $2,560 in taxes.
Best Answer
Robert Kim, CPA
Taxpayers who donate regularly but their total itemized deductions are close to or below the standard deduction
How charitable bunching works
Charitable bunching (also called "lumping") is a tax strategy where you deliberately concentrate multiple years of charitable donations into a single tax year, then take the standard deduction in the "off" years. This works because you only benefit from itemizing deductions when your total itemized deductions exceed the standard deduction.
For 2026, the standard deductions are:
Example: $75,000 married couple with regular donations
Let's say you're married and normally donate $8,000 per year to charity. Your other potential itemized deductions include:
Since $25,000 is less than the $30,000 standard deduction, you'd take the standard deduction and get no tax benefit from your $8,000 in charitable donations.
With bunching strategy:
Two-year tax savings: $660 compared to getting no benefit from donations under the regular approach.
Advanced bunching with donor-advised funds
The most effective bunching strategy uses a donor-advised fund (DAF). You contribute multiple years of donations to the DAF in your "bunch" year, claim the full deduction immediately, then distribute the funds to charities over several years.
Example with DAF:
Who benefits most from bunching
High-benefit scenarios:
Limited benefit scenarios:
What you should do
1. Calculate your baseline: Add up your potential itemized deductions without bunching
2. Compare to standard deduction: If you're within $10,000 of the standard deduction, bunching likely helps
3. Consider cash flow: Ensure you can afford to accelerate donations without hardship
4. Open a donor-advised fund: This provides maximum flexibility for timing donations to charities
5. Track everything: Keep detailed records of all donations and receipts
[Use our return scanner tool](return-scanner) to analyze your last three tax returns and identify optimal bunching opportunities.
Key takeaway: If your total itemized deductions are close to the standard deduction, bunching 2-3 years of charitable donations can create tax savings of $500-$2,500 depending on your donation amount and tax bracket.
Key Takeaway: Bunching charitable donations works best when your itemized deductions are within $5,000-$15,000 of the standard deduction, potentially saving $500-$2,500 in taxes.
Tax savings from charitable bunching by income and donation level
| Income Level | Annual Donations | Normal Approach (2 years) | Bunching Approach (2 years) | Extra Tax Savings |
|---|---|---|---|---|
| $75,000 (MFJ, 12%) | $6,000 | $0 benefit | $1,440 savings | $1,440 |
| $100,000 (MFJ, 22%) | $8,000 | $0 benefit | $3,520 savings | $3,520 |
| $150,000 (MFJ, 22%) | $12,000 | $2,640 savings | $5,280 savings | $2,640 |
| $250,000 (MFJ, 32%) | $15,000 | $4,800 savings | $9,600 savings | $4,800 |
More Perspectives
Michelle Woodard, JD
Taxpayers in higher tax brackets who can benefit from more sophisticated bunching strategies and face AGI limitations
Advanced bunching for high earners
High earners face unique considerations with charitable bunching, particularly AGI limitations and the potential for even greater tax savings due to higher marginal rates.
AGI limitations to consider:
Example: $250,000 earner in 32% bracket
For someone earning $250,000 annually with $12,000 in normal charitable giving:
Five-year bunching strategy:
With appreciated stock donations:
Donating appreciated stock instead of cash provides double benefits:
If you donate $60,000 in stock with $30,000 of appreciation, you save both the income tax deduction ($19,200 at 32%) and avoid $4,500 in capital gains tax (15% rate), for total savings of $23,700.
Multi-year carryforward planning:
Excess donations can be carried forward up to 5 years. High earners can bunch even larger amounts:
This strategy works particularly well before expected income spikes (stock options, business sales, etc.).
Key takeaway: High earners can bunch larger amounts (up to 60% of AGI) and benefit from both higher tax savings rates and strategies like appreciated stock donations to maximize benefits.
Key Takeaway: High earners can bunch larger amounts (up to 60% of AGI) and benefit from both higher tax savings rates and strategies like appreciated stock donations to maximize benefits.
Robert Kim, CPA
Retirees who may have lower income but want to maximize charitable impact while managing required distributions
Charitable bunching for retirees
Retirees often have unique opportunities for charitable bunching, especially when coordinating with required minimum distributions (RMDs) and managing variable retirement income.
Qualified charitable distributions (QCDs)
For retirees 70½ and older, QCDs from traditional IRAs offer a superior alternative to bunching:
Example: 72-year-old with $45,000 RMD
When bunching still makes sense for retirees
Large one-time charitable goals:
Retirees planning major gifts (funding a scholarship, donating to capital campaigns) can benefit from bunching:
Example: Widow planning $50,000 gift
Legacy and estate planning:
Seniors can combine bunching with estate planning:
Key takeaway: Retirees should prioritize QCDs over bunching for regular giving, but bunching remains valuable for large one-time gifts, especially when coordinated with Roth conversions or estate planning strategies.
Key Takeaway: Retirees should prioritize QCDs over bunching for regular giving, but bunching remains valuable for large one-time gifts, especially when coordinated with Roth conversions or estate planning strategies.
Sources
- IRS Publication 526 — Charitable Contributions
- IRS Publication 561 — Determining the Value of Donated Property
Reviewed by Robert Kim, CPA on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.