A Donor-Advised Fund (DAF) like Daffy can be a powerful tool for saving money on taxes. When you contribute cash, stocks, or crypto to your Daffy DAF, you can take an immediate tax deduction for those contributions. These contributions are then invested in a portfolio of your choice, allowing you to donate to over 1.5 million charities at any time.
With Daffy, you can save, invest, and give. You can put money aside at any time, watch it grow in an investment portfolio of your choice, and when you're ready, you can donate knowing exactly how much you can afford. Plus, all of your donation history is conveniently located in one place.
One of the major benefits of a DAF is the tax savings. Every contribution to your Daffy DAF is considered a tax-deductible charitable donation in the year you make it. This allows you to put money aside when your income and tax rates are higher, and donate whenever you want. In some cases, you may deduct as much as 60% of your adjusted gross income in a given year.
Daffy also allows you to save more with stock and crypto donations. Generally, when you sell assets like stock or crypto in your personal accounts, you will owe federal, state, and local taxes on the capital gain. However, when you contribute a long-term capital asset like stock or crypto to a DAF, you get full credit for the value of the asset when you donate it, and you never have to pay taxes on the capital gain.
Traditional DAF providers often charge high administrative fees, but Daffy charges significantly lower fees, starting at just $36 a year. This means more of your money goes to the charities you care about, rather than being eaten up by fees. Plus, transferring a DAF account to Daffy is easy and free of charge.
In summary, Daffy is a great option for a DAF. It allows you to save money on taxes, invest your contributions, and give to the charities you care about, all while charging lower fees than traditional providers.