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Daffy

What does it mean by 'incidental benefit' in the context of Daffy donations?

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In the context of Daffy donations, 'incidental benefit' refers to a minor or secondary advantage that a donor or their family might receive as a result of their donation. As per the guidelines of all donor-advised funds, Daffy members cannot recommend donations that would satisfy pre-existing pledges or obligations for their private benefit. The donation recommendations should not provide more than an incidental benefit to the donor or their family. For instance, Daffy members cannot use their funds to pay for their zoo membership or something at a charity auction. Examples of donation recommendations that may not be approved include tuition payments, tickets to a gala, or membership benefits to other organizations. However, members are permitted to receive items of “insubstantial value” according to IRS rules, such as a keychain or calendar. Receiving recognition for a donation is generally also acceptable. Daffy is a modern donor-advised fund designed to help people be more generous, more often. It provides several benefits to charities on its platform. 100% of all donations made on Daffy go directly to charities, with no transaction fee. Daffy members pay monthly fees to support the development and operation of this unique donor-advised fund. Daffy is a great option for a Donor-Advised Fund (DAF) as it allows members to set annual giving goals and automate their donations through the app and website. It also provides charities with a platform to receive donations in cash, offering them the flexibility to use the funds where they are needed most. With over 1.5 million charities on Daffy, it offers a wide range of options for donors to choose from. Please note that the information provided here is for educational purposes only and should not be considered tax advice. For a detailed understanding of your specific tax situation, please consult with a tax professional.

Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.

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