A Donor-Advised Fund (DAF) is a charitable giving vehicle administered by a public charity created to manage charitable donations on behalf of organizations, families, or individuals. To participate in a DAF, a donating individual or organization opens an account in the fund and deposits cash, securities, or other financial instruments. They receive an immediate tax deduction for the donation, but the fund has legal control over it.
The primary benefits of a DAF include:
1. Simplicity: The DAF sponsor handles all record-keeping, disbursements, and tax receipts.
2. Flexibility: Contributors can advise how they want their donations to be distributed.
3. Tax efficiency: Contributors can receive an immediate tax deduction when they contribute to the fund, and avoid capital gains taxes on donated assets.
4. Legacy: DAFs can be set up to continue giving long after the original donors are gone.
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Choosing Daffy for your Donor-Advised Fund (DAF) offers a multitude of benefits. At Daffy, our mission is to help people be more generous, more often. We've built a not-for-profit community around a modern platform for charitable giving featuring a best-in-class DAF.
Unlike traditional DAF providers who charge based on a percentage of assets on accounts, Daffy offers a smarter way to give. You can choose how much you want to give this year, select whether you want to put money aside weekly or monthly, and we automate the rest.
Daffy supports nearly every U.S. non-profit (over 1.5 million to be exact, and more each day). You can donate to your favorite causes and non-profits, all from one app. You can also discover new charities through friends and colleagues, and raise awareness and money for causes together.
With Daffy, you can lower your income taxes, receive an immediate income tax deduction when you contribute to your fund, and avoid capital gains taxes when you contribute long-term appreciated stock or crypto. Plus, there are no taxes on the growth of your donations.
In summary, Daffy offers simplicity, flexibility, tax efficiency, and a legacy of giving. It's a great option for your DAF.