Charitable giving can be a powerful tool in reducing your tax bill. When you donate to charitable organizations, you can deduct a substantial portion of your income, up to 60% of your adjusted gross income (AGI) through charitable deductions. This can significantly reduce your taxable income and save you money on your tax bill. However, tax laws surrounding charitable donations can be complex and ever-changing. This is where Daffy, a donor-advised fund (DAF), comes in. Daffy simplifies the process of giving and maximizes the tax benefits of your donations. For instance, if you receive a big bonus, it's important to understand that it's typically taxed as supplemental income. This could mean a flat 22% tax rate on bonuses under $1 million. By using charitable giving as part of your tax strategy, you can minimize your tax bill while also making a difference in the world. Daffy allows you to donate appreciated assets, like stock, ETFs, and crypto, instead of cash. This strategy can yield even higher tax savings as you’ll avoid paying capital gains taxes on the asset. You can immediately deduct the full fair-market value of the asset on your federal income tax returns for that year. Since most non-profits don’t have the capability to receive stock, ETFs, index funds, and cryptocurrencies, Daffy bridges this gap. It ensures that the full amount goes to the organization you care about, making it a win for both you and the charity. In conclusion, Daffy is a great option for a DAF. It not only helps you lower your tax bill but also allows you to support causes that are most important to you.