Maximizing Your Charitable Impact:
Bunched Giving with Donor Advised Funds
by Jared Collum, Financial Advisor
As a financial advisor, I often work with clients who want to make a meaningful impact through charitable giving while aligning their generosity with smart financial planning. One tool I frequently recommend, especially for those who are not yet eligible for Qualified Charitable Distributions (QCDs), is a Donor Advised Fund, or DAF, offered through Raymond James Charitable.
A DAF is a charitable giving account that allows you to make a contribution, receive an immediate tax deduction, and then recommend grants to your favorite charities over time. It’s a flexible and tax-efficient way to support the causes you care about. Raymond James Charitable makes it easy to set up and manage a DAF, offering benefits like no capital gains tax on appreciated assets, flexible investment options, and streamlined grant-making.
If you are under the age of 70½ and not yet eligible to make QCDs from your IRA, you might be wondering how to maximize your charitable giving in the meantime. That’s where the strategy of bunched giving comes in.
Bunched giving means consolidating several years’ worth of charitable donations into a single tax year. This allows you to itemize deductions in that year and take the standard deduction in others, which can result in a greater overall tax benefit.
For example, instead of donating $10,000 annually, you might contribute $30,000 to a DAF in one year. You get the full deduction that year and then distribute grants to charities over time, keeping your support consistent.
This strategy is especially useful for donors who are charitably inclined but don’t have enough annual deductions to itemize every year. By bunching your giving into a DAF, you can take advantage of tax savings now while still supporting your favorite organizations over time.
If you’re interested in learning more about how a Donor Advised Fund through Raymond James Charitable could fit into your financial plan, or if you’d like to explore whether bunched giving makes sense for your situation, I’d be happy to help.
Let’s talk about how you can make the most of your charitable giving today and in the years to come.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
Jared Collum
FINANCIAL ADVISOR
Pentas Wealth Management
Raymond James
PHONE: 229-715-7151