Donor Advised Fund Simulation
5-Year Tax Impact Comparison (2026-2030)
5-Year Tax Savings with Merrill Lynch DAF
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Direct Giving
Sell stock → Pay capital gains → Donate cash
Merrill Lynch DAF
Donate stock directly → Avoid capital gains → Grant from DAF
📋 Simulation Assumptions
Income Growth: 5% annually
Donation Growth: 5% annually (matching income)
Net Worth Growth: 21.24% (same as 2024-2025)
Tax Rate: 41.3% (32% Federal + 9.3% CA)
Capital Gains Rate: 37.1% (23.8% Federal + 13.3% CA)
Stock Appreciation: 200% (typical long-held positions)
DAF Fees (Merrill): 1.04% all-in (0.75% admin + 0.29% investment)
DAF Investment Return: 6% annually