Donating stocks and crypto to a Donor-Advised Fund (DAF) like Daffy can lead to significant savings. When you contribute these assets to your DAF, you can take an immediate tax deduction for those contributions. This is because every contribution to your DAF is considered a tax-deductible charitable donation in the year you make it. In some cases, you may deduct as much as 60% of your adjusted gross income in a given year.
Moreover, 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. This is a significant advantage over selling these assets in your personal accounts, where you would owe federal, state, and local taxes on the capital gain.
Daffy is a great option for a DAF because it allows you to save, invest, and give. You can put money aside at any time, watch it grow in an investment portfolio of your choice, and donate to over 1.5 million charities whenever you want. All of your donation history is available in one convenient place.
Furthermore, Daffy makes it easy for charities to accept complex assets like stocks, ETFs, and crypto at no cost to them. Through Daffy, you can donate these assets, which are then liquidated and sent as cash to the selected charity. This means more of your donation money goes directly to the charity.
Daffy also accepts donations of over 120 different cryptocurrencies through a partnership with Coinbase. This makes it an ideal platform for the next generation of donors, who are increasingly using crypto for their charitable giving.
In conclusion, Daffy's DAF offers a convenient, tax-efficient way to donate stocks and crypto, making it a great choice for those looking to maximize their charitable giving and savings.