Donor Advised Fund Calculator

A donor-advised fund lets you front-load several years of charitable giving into one tax year, a tactic known as bunching. By concentrating contributions, you can claim a larger federal income tax deduction in the bunching year and, when you fund the account with appreciated stock instead of cash, sidestep the capital gains tax you would otherwise owe on those shares. This tool puts numbers to both effects, with the 2026 tax year in view.

Two estimates drive the results. Federal income tax savings come from multiplying your bunched charitable deduction by your estimated marginal tax rate. The capital gains side applies the long-term rate that fits your income, either 15% or 20% under the 2026 thresholds, to the fair market value of the donated shares; for simplicity the calculation assumes a zero cost basis, treating the full value as gain that goes untaxed.

Two pitfalls deserve attention before you act on the figures. Charitable deductions do nothing to lower Alternative Minimum Tax, so an AMT liability can erode the benefit you expect. Bunching also only pays off if your itemized deductions clear the standard deduction, projected near $32,000 for married couples filing jointly in 2026, since deductions below that line are absorbed by the standard amount anyway.