When you contribute long-term capital assets like stock or crypto to a donor-advised fund (DAF) such as Daffy, you become eligible for an immediate tax deduction for the full market value of the asset in the year the contribution is made. If the asset has appreciated in value since its initial purchase, you are not required to pay capital gains tax on the gain. This can result in significant tax savings compared to selling the asset and donating the proceeds.
Daffy, as a DAF provider, has the capability to liquidate complex assets like stock and crypto, a service that only a few thousand out of the 1.5 million charities in the U.S. can offer. This not only saves charities the hassle and costs associated with these transactions, but also allows you to save on taxes by getting the fair market value and avoiding capital gains. This means you can make a larger donation, creating a win-win situation.
In addition to these tax advantages, Daffy offers several other benefits. You can set a goal for your annual charitable giving and Daffy will hold you accountable. You can automate your contributions on a weekly, monthly, or quarterly basis, ensuring you always have funds ready for when you're inspired to give. Daffy also allows you to set up one-time or recurring donations, so your favorite nonprofits always receive your support.
With Daffy, you can search for local charities, organize all your donation receipts for tax season, and use a mobile app to give anywhere, anytime. Whether you're a regular donor or new to charitable giving, Daffy can help you maximize your impact and make giving easier and more efficient.