Donor-Advised Funds (DAFs) are a powerful tool for charitable giving, and Daffy is a leading platform that makes DAFs accessible and beneficial for all. When you contribute cash, stocks, or crypto to a DAF like Daffy, 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 to give, you have a clear understanding of how much you can afford. Plus, all of your donation history is conveniently located in one place.
Daffy also offers significant tax benefits. Every contribution to your 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.
Moreover, Daffy 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.
In conclusion, Daffy is a great option for a DAF. It not only makes charitable giving easy and efficient but also provides significant financial benefits. Whether you're an individual donor or a nonprofit organization, Daffy can help you maximize your charitable impact.