As summer begins to wind down and fall activities fill the calendar, it’s a great time to take a fresh look at your charitable goals for 2026. While year-end giving often gets most of the attention, planning ahead can help you make more intentional decisions about both your philanthropy and your financial goals.

One strategy worth discussing with your professional advisors is known as “bunching” charitable contributions. Though the name may sound unusual, it can be an effective tool for donors who want to maximize the impact of their giving while potentially enhancing available tax benefits.

In recent years, charitable deduction rules have become increasingly complex. Higher standard deductions and changes to federal tax law mean that many taxpayers no longer itemize deductions each year. As a result, some donors find that spreading charitable gifts evenly from year to year does not provide the same tax advantages as it once did.

That’s where bunching may come into play.

Rather than making similar charitable contributions annually, bunching involves consolidating multiple years of planned charitable giving into a single tax year. In some cases, this approach may allow donors to exceed the standard deduction threshold and benefit from itemizing deductions during that year. The following years, they may return to taking the standard deduction while continuing to support the causes they care about.

A donor-advised fund at the Grand Rapids Area Community Foundation can make this strategy especially effective.

For example, a donor might contribute several years’ worth of charitable giving to a donor-advised fund in 2026. While the charitable contribution is made all at once, grants can still be distributed to favorite nonprofits over time. This means local organizations continue receiving consistent support while the donor enjoys the flexibility to recommend grants when and where they are needed most.

Just as importantly, a donor-advised fund allows families to be thoughtful and intentional about their giving. Some donors use the fund to involve children and grandchildren in philanthropic decisions, creating opportunities to pass along family values while supporting meaningful work throughout the Greater Itasca Area.

In addition to cash gifts, donor-advised funds can also accept appreciated assets such as publicly traded stock. In certain circumstances, donating appreciated securities may provide additional tax advantages while allowing more resources to be directed toward charitable purposes.

Of course, tax considerations are only one part of the conversation. Many donors choose to work with the Grand Rapids Area Community Foundation because they want to create lasting impact close to home. Whether your passion is education, the arts, environmental stewardship, support for local nonprofits, or addressing emerging community needs, strategic charitable planning can help align your giving with the causes that matter most to you.

As you begin thinking about year-end giving, now is the perfect time to connect with your tax advisor, financial planner, and the team at the Grand Rapids Area Community Foundation. Together, we can explore charitable strategies that help you achieve your goals while strengthening the communities we all care about.

We’re always happy to serve as a resource and partner in your philanthropic journey. After all, meaningful giving starts with a conversation. Contact us HERE to learn more about donor-advised funds and charitable planning opportunities.