Bunching is a tax strategy that allows you to maximize your tax savings by grouping your charitable contributions for multiple years into a single year. This allows you to itemize your tax deductions in one year and take the standard deduction in the other years. For instance, if you're a single tax filer who wants to give $5,000 a year to charity, you could double that amount by bundling two years of contributions in one tax year, allowing you to reach the $12,950 standard deduction threshold. A great way to implement this strategy is through Daffy, a Donor-Advised Fund (DAF). Let's take Leah as an example. She works in sales and received a $50,000 commission bonus. Charitable giving is important to her, so she uses Daffy to make a $10,000 contribution with some of the funds from her bonus. This might sound like a lot, but over two years, it amounts to donating just over $400 each month. What's more, Leah doesn’t have to give the money to any charities yet; instead, she can invest those funds with Daffy for tax-free growth and spread her contributions out over the next two or three years. On the tax front, Leah’s $10,000 charitable contribution paired with the $5,000 she’ll pay in mortgage interest should put her well above the standard deduction, allowing her to deduct an extra $2,000 from her taxable income while also making a difference in the world. Bunching isn't right for everyone, but it can be a great option if you have a major increase in your taxable income, are close to being able to itemize your tax deductions, want to make a large donation to a charity, or if giving more in one year helps you to significantly lower your taxable income. Daffy makes this process easy and efficient, allowing you to maximize your tax savings while supporting the causes you care about.