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What is a donor-advised fund and how can it help in donating stock?

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A donor-advised fund (DAF) is a type of giving program that allows you to combine the most favorable tax benefits with the flexibility to easily support your favorite charities. It is an account that is sponsored by a public charity, which you can contribute cash, securities, and other assets to and get an immediate tax deduction. The fund then grows over time and you can recommend grants to virtually any IRS-qualified public charity. One of the key benefits of a DAF is its ability to accept complex assets like stocks and crypto. This is where Daffy, a provider of DAFs, shines. Unlike most charities that can't accept these types of assets directly, Daffy has the capability to liquidate them, saving charities the hassle and costs. Plus, by liquidating appreciated assets like stocks and crypto, you can save on taxes by getting the fair market value and skipping the capital gains. This means you can make a bigger donation, making it a win-win situation for both you and the charity. But Daffy offers more than just a DAF. With Daffy, you can set a goal for how much you want to give each year, automate your contributions, set up one-time or recurring donations, search for local charities, and organize all your donation receipts. Daffy even offers a mobile app to help you give anywhere and anytime you're inspired to do so. Whether you're a regular donor like Taylor or someone who wants to give more like Jamie, Daffy can help. With Daffy, you can automate your giving, grow your giving potential through investing in your fund, have money ready to give when you're inspired, and keep all your giving in one simple place for tax time. Plus, by giving regularly and expanding options, Daffy benefits nonprofits by providing them a regular stream of income. In conclusion, a DAF can be a great tool for good philanthropy. Not only does it offer excellent tax benefits and flexibility in giving, but with Daffy, it's also easy and low-cost. So, if you're ready to join the most modern and affordable donor-advised fund, sign up with Daffy today.

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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