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Tags: charitable contributions limit, charitable bunching, retirement, investing, money, finance, stock market,charitable donations, charitable donations 2018, charitable donations tax deduction, new tax bill charitable deductions

Transcript:

Today we’re talking about charitable bunching, and I really don’t want you to get your panties all in a bunch over it, because it’s actually a pretty cool strategy.

And by the end of this tip today, you’re going to be like “Wow, that’s genius, Ashley!” Well, yes, I know...it is genius, but I have a little secret - I didn’t come up with this. I’m just bringin the bunching to the people!

Ok, enough messing around...here’s how charitable bunching works and how it might be relevant for you:

Depending on your tax situation, and the fact that the standard deduction has shot up for 2018, many people won’t benefit from the tax deduction on charitable contributions, like you may have in years past.

Enter charitable bunching. It’s a strategy where you lump your charitable donations into one year, so instead of donating to charity every year, you would donate more dollars less often. So for example, if you donate $5,000 every year to charity, but switch to donating $15,000 every 3 years instead, you would still donate the same amount, but by donating a higher amount in a given year, the strategy of lumping or bunching those contributions into one year can help you qualify for itemized deductions and hence, allow you to continue to receive a tax deduction on those charitable contributions in the years that you bunch.

Thanks for listening today. Tomorrow we’re going to talk about the best way to give to charity!

My name is Ashley Micciche and this is the One Minute Retirement Tip.