The latest tax reform increases the allowable deduction for cash donations made to public charities from 50 percent of your Adjusted Gross Income (AGI) to 60 percent – yet “bunching” your giving makes it so you can still give and gain a tax deduction.
While not a new concept, bunching charitable donations in alternate years allows many taxpayers to continue receiving savings from their giving. This is a relatively simple strategy – albeit one that requires planning – but the savings can be considerable and should be part of charitable discussions.
Help your community and the special causes you care about, such as your local library, while still gaining financial benefit for your household.
Read more or talk to your tax advisor about bunching your desired charitable contributions this tax year.