The Donor Advised Fund Loophole: A Tax Shelter for the Affluent? A recent exposé has highlighted a clever tax strategy employed by high income households to minimize their tax liability.
Dubbed "bunching," it involves making one large contribution to a donor advised fund (DAF) in a single year, thereby capturing a decade's worth of charitable deductions at once.
At first glance, this approach appears to be a savvy use of tax law loopholes by affluent individuals.