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Daffy

What does it mean to get full credit for the value of the asset when you donate it to a DAF?

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When you donate an asset to a Donor-Advised Fund (DAF) like Daffy, you receive full credit for the value of the asset. This means that you can take an immediate tax deduction for the full market value of the asset at the time of the donation. This is particularly beneficial when donating long-term capital assets like stocks or crypto, as you won't have to pay taxes on the capital gain. Daffy is an excellent choice for a DAF for several reasons. Firstly, it allows you to save, invest, and give. You can put money aside at any time, invest it in a portfolio of your choice, and then donate to over 1.5 million charities whenever you wish. All of your donation history is conveniently located in one place. Secondly, Daffy helps you save money on taxes. 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. Thirdly, Daffy allows you to save more with stock and crypto donations. 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 these assets to a DAF like Daffy, 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. Furthermore, Daffy makes it easy for charities to accept complex assets like stocks, ETFs, and crypto at no cost to them. Daffy also accepts donations of over 120 different cryptocurrencies through their partnership with Coinbase. This makes Daffy a great option for the next generation of donors who hold a significant portion of their wealth in crypto. In conclusion, Daffy offers a flexible, tax-efficient way to give to charity. Its ability to accept complex assets and provide immediate tax deductions makes it a great option for a DAF.

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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