Early birds, “bunching,” and planning for year-end
by SCF Team | August 1, 2026 | Siouxland Community Foundation Blog, Donor Resources
Before fall gets busy, now is a good time to check in on your 2026 charitable goals. One strategy to discuss with your tax and financial advisors is “bunching” charitable contributions.
Bunching became more relevant after the Tax Cuts and Jobs Act of 2017 significantly increased the standard deduction. The standard deduction itself has an interesting history, and more recent changes under the One Big Beautiful Bill Act have made charitable tax planning even more important.
Beginning in 2026:
- Itemized charitable deductions are subject to a 0.5% of adjusted gross income (AGI) floor.
- For taxpayers in the highest tax bracket, the tax benefit of itemized charitable deductions is subject to a 35% cap.
Bunching means combining two or more years of planned charitable contributions into a single tax year. Concentrating gifts may allow you to itemize deductions in that year and potentially receive a greater tax benefit than you would from making smaller annual gifts.
A donor-advised fund at the Siouxland Community Foundation can make this strategy particularly useful. You can contribute several years of planned gifts to the fund now, generally receive a charitable deduction in the year of the contribution subject to applicable limitations, and recommend grants to your favorite nonprofits over future years.
Your donor-advised fund can also accept appreciated securities, which may offer additional tax advantages by allowing you to potentially avoid capital gains tax on appreciated stock you contribute.
Now is the time to talk with your tax and financial advisors about whether bunching fits your plans. The Siouxland Community Foundation team is happy to join the conversation and help you plan ahead.
The Siouxland Community Foundation is honored to serve as a resource as you build your charitable plans. This newsletter is for informational purposes only and is not legal, accounting, or financial planning advice. Please consult your tax or legal advisor about your specific situation.
