Leech Tishman Trusts & Estates Partner Stefanie L. Pate was recently quoted in The Pittsburgh Foundation article entitled, “The Big Payback: Charitable Giving Strategies that Save Money at Tax Time” by Christian Pelusi.
In the article, Pate discusses the advantages of “bunching” charitable contributions, a strategy that can help donors maximize their tax deductions while supporting their philanthropic goals.
“Bunching allows clients to group two or more years of charitable contributions into one year, foregoing a planned charitable contribution the following year,” said Pate. “By itemizing in the bunching year and taking the standard deduction the next year or years, clients achieve a larger cumulative charitable deduction overall. This is also a great opportunity for taxpayers to take advantage of a donor-advised fund (DAF), as they can still recommend grants to one or more charities in tax years following the year of contribution to the DAF.”
Pate also emphasized the importance of timing, noting the potential impact of the upcoming sunset of the Tax Cuts and Jobs Act in 2025, which may affect the standard deduction thresholds for individuals, joint filers, and heads of household.
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