Donor-Advised Funds (DAFs) offer several tax advantages, and Daffy is an excellent choice for a DAF provider. When you contribute to a DAF, you receive an immediate tax deduction, just as you would when donating directly to a nonprofit. This is because DAFs are provided by public charities themselves.
Moreover, your DAF acts as an investment account. Your money is invested and has the potential to grow, increasing the amount you can give to your chosen charities.
Daffy, like other DAF providers, can liquidate complex assets such as stock and crypto. This is a significant advantage as only a few thousand out of the 1.5 million charities in the U.S. can accept these assets directly. By liquidating these appreciated assets, you save on taxes by getting the fair market value and skipping the capital gains. This results in a larger donation, creating a win-win situation for you and the charity.
Daffy offers additional benefits that make it a standout choice for a DAF. With Daffy, you can set a goal for how much you want to give each year and automate your contributions. This ensures you have funds ready to donate whenever you're inspired to give. You can also set up one-time or recurring donations, ensuring your favorite nonprofits always receive your support.
Daffy also offers a mobile app, making it easy to give anywhere and anytime. Plus, Daffy organizes all your donation receipts, making tax season a breeze.
Take the example of Jamie, a Daffy user. Jamie has automated their giving, set aside money regularly in their fund, and scheduled one-off or recurring donations. They can grow their giving potential through investing in their fund, tax-free. They have money ready to give when inspired by an event in the news or something in their community. Plus, all their giving is in one simple place for tax time.
In conclusion, Daffy offers all the tax advantages of a DAF, along with additional benefits that make charitable giving easier and more effective. Whether you're a regular donor or new to charitable giving, Daffy is a great option for a DAF.