So, how does a DAF relate to bunching? Bunching is a tax strategy where you make several years' worth of charitable donations in one year to exceed the standard deduction and itemize your taxes. A DAF is an excellent tool for bunching because you can make a large donation to your DAF in one year, get the tax deduction, and then distribute the funds to charities over several years.
Daffy is a great option for a DAF. It was designed to be a community, bound together by a common commitment to regularly put money aside for those less fortunate. Daffy is the Donor-Advised Fund for You™, designed from the ground up for this purpose.
Donor-advised funds have traditionally been a financial tool only available to the ultra-wealthy. However, Daffy has made DAFs more accessible, making it one of the fastest-growing giving vehicles in philanthropy today.
With Daffy, you can open a donor-advised fund, contribute money to your charitable fund, and then decide when and where to make your donations. This gives you the flexibility to manage your charitable giving in a way that best suits your financial situation and philanthropic goals.
In conclusion, a DAF is a tax-deductible financial account for the sole purpose of charitable giving. It provides significant tax incentives, making it a popular way to organize and manage charitable donations. And Daffy is a great option if you're considering opening a DAF.