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      • BACK TO BASICS: REMINDING CLIENTS ABOUT WILLS, TRUSTS, AND CHARITABLE BEQUESTS
      • Summer legislative updates–and looking ahead to sunsets
      • FARMS, TAX PLANNING, AND FUNDING A FAMILY LEGACY
    • Sept 2022 - Professional Advisor Newsletter >
      • HIGHLY-APPRECIATED STOCK: IF YOUR CLIENT MISSED THE IDEAL WINDOW, IT’S STILL NOT TOO LATE TO SUPPORT CHARITY
      • THE “I’S” HAVE IT: TWO KEY TOPICS FOR CLIENT MEETINGS
      • INHERITED IRAS: BIG HEADACHE, OR BIG OPPORTUNITY?
      • Cryptocurrency: What if your clients own it and you don’t think they should?
    • October 2022 - Professional Advisor Newsletter >
      • CHARITABLE GIVING IN CHALLENGING ECONOMY
      • DISASTER PHILANTHROPY: YOUR CLIENTS AND THE IMPORTANT ROLE OF INDIVIDUAL PHILANTHROPY
      • COUNSELING YOUR CLIENTS ABOUT NONPROFITS: THE GOOD, THE BAD, AND THE BIG LEAPS
    • November 2022 - Professional Advisor Newsletter >
      • STRONG YEAR-END GIVING IN A BEAR MARKET: DONOR-ADVISED FUNDS COME IN HANDY
      • ADOPT A “DONOR BEWARE” ATTITUDE WHEN CLIENTS MAKE NON-MARKETABLE GIFTS
      • IT’S A BIG DEAL: ANSWERING CLIENTS' QUESTIONS ABOUT GIVINGTUESDAY
    • Dec 2022 Professional Advisor Newsletter >
      • HOW NFTS ARE CONNECTING MAKERS, INVESTORS & DONORS WITH CAUSES THEY LOVE
      • FIVE OF 2022’S MOST-ASKED QUESTIONS ABOUT QUALIFIED CHARITABLE DISTRIBUTIONS
      • 2022: IMPORTANT CHARITABLE TAX PLANNING REMINDERS
    • Jan 2023 Professional Advisor Newsletter
    • September Donor Newsletter >
      • KEEPING TRACK OF YOUR CHARITABLE DONATIONS IS MORE IMPORTANT THAN EVER
      • HERE’S WHAT TO KNOW BEFORE GIVING MONEY TO A NEW NONPROFIT
      • HOW TO GROW YOUR CHARITABLE GIVING BY BUNDLING TAX SAVINGS
    • October Donor Newsletter >
      • BRIGHT SPOTS IN THE MIDST OF ECONOMIC CHALLENGES
      • ACTIVATE IMMEDIATE AND EFFECTIVE ASSISTANCE FOR PEOPLE IN NEED
    • November Donor Newsletter >
      • Give a little and feel a lot better
      • “Checkout charity”: Cause for concern?
      • The perfect plate: Turkey, pumpkin pie and charitable giving
    • December Donor Newsletter >
      • LEVEL UP FAMILY PHILANTHROPY AT ANY AGE WITH THESE BOOKS
      • THE GIFT OF GIVING, COMMUNITY FOUNDATION STYLE
      • FOUR YEAR-END REMINDERS
    • Jan 2023 Donor Newsletter
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How to grow your charitable giving by bundling tax savings


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Many donors elect to use a donor-advised fund at the community foundation as an organizing tool, frequently recommending grants to their favorite charities in ways that mirror the ways they would make donations outright. Often, contributions to a donor-advised fund are in the form of highly-appreciated stock or other hard-to-value assets that generate a favorable tax outcome. Using a donor-advised fund in this way is very effective to get resources into the hands of the nonprofits who need it to fulfill their missions. 
Because the charitable income tax deduction is not currently available to taxpayers who do not itemize, however, you may worry that you have less incentive to give to charities during certain years. A donor-advised fund can help with that. Consider a situation where you have a high-income year and you make a large contribution to your donor-advised fund in that year. You are able to benefit from the charitable deduction because you are eligible to itemize deductions on that year’s tax return. Let’s assume, then, that your income is lower in the next two years; therefore, you do not itemize deductions. This means you have a reduced tax incentive to support charities, although you have loads of philanthropic incentive!  
 
In this situation, the “bunching” strategy you deployed in year one allows you to support charities from your donor-advised fund in years one, year two, and year three. This technique creates important financial motivation to complement your philanthropic motivation. This, in turn, keeps your giving strong and steady across the years, which is very much appreciated by the charities you support. 
 
The Peninsula Community Foundation is happy to help you develop a charitable giving plan that meets both your tax planning objectives as well as your desire to support the charities you love. Contact us at mmonteith@pcfvirginia.org or call us at 757 327-0862. 

The team at the Peninsula Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation. 

For more information about establishing a fund, please contact Michael Monteith, Email/757.327.0862 ​​​​
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  • Homepage - Peninsula Community Foundation
  • About
    • Board of Directors
    • Connect
    • Financials
    • News
    • Partners
  • Impact
    • Brink Impact Fund
    • Children's Holiday Fund
    • COVID 19
    • Give Local 757
    • Grants
    • Impact 100
    • Leadership Society
    • Legacy Society
    • PCF Initiatives >
      • Early Childhood
      • Homelessness
      • Neighborhoods
  • Scholarships
  • Funds
    • Agency
    • Corporate
    • Designated
    • Donor Advised
    • Employee Assistance
    • Legacy >
      • Types of Funds
    • Aug 2022 - Professional Advisor Newsletter >
      • BACK TO BASICS: REMINDING CLIENTS ABOUT WILLS, TRUSTS, AND CHARITABLE BEQUESTS
      • Summer legislative updates–and looking ahead to sunsets
      • FARMS, TAX PLANNING, AND FUNDING A FAMILY LEGACY
    • Sept 2022 - Professional Advisor Newsletter >
      • HIGHLY-APPRECIATED STOCK: IF YOUR CLIENT MISSED THE IDEAL WINDOW, IT’S STILL NOT TOO LATE TO SUPPORT CHARITY
      • THE “I’S” HAVE IT: TWO KEY TOPICS FOR CLIENT MEETINGS
      • INHERITED IRAS: BIG HEADACHE, OR BIG OPPORTUNITY?
      • Cryptocurrency: What if your clients own it and you don’t think they should?
    • October 2022 - Professional Advisor Newsletter >
      • CHARITABLE GIVING IN CHALLENGING ECONOMY
      • DISASTER PHILANTHROPY: YOUR CLIENTS AND THE IMPORTANT ROLE OF INDIVIDUAL PHILANTHROPY
      • COUNSELING YOUR CLIENTS ABOUT NONPROFITS: THE GOOD, THE BAD, AND THE BIG LEAPS
    • November 2022 - Professional Advisor Newsletter >
      • STRONG YEAR-END GIVING IN A BEAR MARKET: DONOR-ADVISED FUNDS COME IN HANDY
      • ADOPT A “DONOR BEWARE” ATTITUDE WHEN CLIENTS MAKE NON-MARKETABLE GIFTS
      • IT’S A BIG DEAL: ANSWERING CLIENTS' QUESTIONS ABOUT GIVINGTUESDAY
    • Dec 2022 Professional Advisor Newsletter >
      • HOW NFTS ARE CONNECTING MAKERS, INVESTORS & DONORS WITH CAUSES THEY LOVE
      • FIVE OF 2022’S MOST-ASKED QUESTIONS ABOUT QUALIFIED CHARITABLE DISTRIBUTIONS
      • 2022: IMPORTANT CHARITABLE TAX PLANNING REMINDERS
    • Jan 2023 Professional Advisor Newsletter
    • September Donor Newsletter >
      • KEEPING TRACK OF YOUR CHARITABLE DONATIONS IS MORE IMPORTANT THAN EVER
      • HERE’S WHAT TO KNOW BEFORE GIVING MONEY TO A NEW NONPROFIT
      • HOW TO GROW YOUR CHARITABLE GIVING BY BUNDLING TAX SAVINGS
    • October Donor Newsletter >
      • BRIGHT SPOTS IN THE MIDST OF ECONOMIC CHALLENGES
      • ACTIVATE IMMEDIATE AND EFFECTIVE ASSISTANCE FOR PEOPLE IN NEED
    • November Donor Newsletter >
      • Give a little and feel a lot better
      • “Checkout charity”: Cause for concern?
      • The perfect plate: Turkey, pumpkin pie and charitable giving
    • December Donor Newsletter >
      • LEVEL UP FAMILY PHILANTHROPY AT ANY AGE WITH THESE BOOKS
      • THE GIFT OF GIVING, COMMUNITY FOUNDATION STYLE
      • FOUR YEAR-END REMINDERS
    • Jan 2023 Donor Newsletter
  • DONATE
  • Fund Login