Why It Makes Sense to “Bunch” Charitable Contributions in 2025

The Challenge: Fewer People Are Itemizing

Since the 2017 Tax Cuts and Jobs Act, the standard deduction has nearly doubled, and it continues to adjust for inflation. For the 2025 tax year, the standard deduction is roughly $14,600 for single filers and $29,200 for married couples filing jointly.

That means fewer taxpayers itemize deductions — and if your total deductible expenses (mortgage interest, state and local taxes, charitable gifts, etc.) don’t exceed those thresholds, you’ll likely take the standard deduction instead.

While this simplifies filing, it also means that your annual charitable contributions might not reduce your taxable income.

The Solution: The Bunching Strategy

The concept of bunching is simple: instead of spreading your charitable contributions evenly over multiple years, you “bunch” two or more years’ worth of gifts into a single tax year.

By concentrating your giving, your total itemized deductions may exceed the standard deduction that year — allowing you to itemize and deduct your charitable gifts. Then, in the following year(s), you can take the standard deduction again.

Here’s an example:

Without bunching:

• You give $15,000 to charity each year.
• Combined with other deductions, your total annual deductions reach $25,000 — below the $29,200 standard deduction for joint filers.
• You take the standard deduction and receive no tax benefit for your charitable giving.

With bunching:

• You give $30,000 to charity in 2025 and skip charitable gifts in 2026.
• In 2025, your total deductions rise above the standard deduction — allowing you to itemize and deduct your giving.
• In 2026, you take the standard deduction again.
• Your total giving remains the same, but you gain a valuable tax deduction every other year.

Using Donor-Advised Funds for Flexibility

Many donors pair bunching with a donor-advised fund (DAF). This allows you to make a large, deductible contribution in one year but distribute grants to your favorite charities gradually over time. It’s a powerful way to maintain consistent annual giving while optimizing your tax strategy.

Smart Giving in 2025

Bunching charitable contributions won’t make sense for everyone — but for those with steady giving habits or higher-income years, it can provide a meaningful tax advantage without reducing generosity.

At JT Stratford, we help clients structure charitable strategies that make both financial and emotional sense. If you plan to give to charity in 2025, let’s explore whether bunching or a donor-advised fund could help you give more effectively — and keep more of your income working toward your long-term goals.