Donating stock to a charity can be a smart tax strategy, especially if you've held the investment for more than a year. The IRS allows you to deduct the full market value of the stock you donate, not just the price you paid for it. This can result in substantial tax savings if you itemize your deductions. For instance, let's consider a couple who purchased 500 shares of Apple stock in January 2021 for $130 per share, totaling $65,000. By February 2022, the stock price had risen to $175 per share, making their investment worth $87,500. If they sold the stock, they would owe over $5,000 in taxes on their gain of $22,500. However, if they donated the stock to a charity, they could deduct the full market value of $87,500 from their taxable income, potentially saving them thousands of dollars in taxes. This is where Daffy comes in. Daffy is a Donor-Advised Fund (DAF) that allows you to donate stock and other assets to charity while maximizing your tax benefits. With Daffy, you can donate your appreciated stock, take a tax deduction for the full market value, and then recommend grants to your favorite charities over time. Daffy makes the process of donating stock simple and efficient. You can easily transfer your stock to Daffy, and they handle the sale and distribution of funds to your chosen charities. Plus, Daffy provides you with a tax receipt for your donation, making it easy to claim your deduction. In conclusion, if you're looking for a way to give back while also maximizing your tax benefits, consider donating your appreciated stock to a DAF like Daffy. It's a win-win situation: you get to support the causes you care about while also reducing your tax bill.