A tax ID number, also known as an Employer Identification Number (EIN), is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses and organizations, including charities. This number is crucial for charities as it is used by the IRS to identify them for tax purposes and to determine their eligibility to receive tax-deductible contributions.
For charities, having a tax ID number is not only a legal requirement but also a way to establish credibility and transparency. It allows donors to verify the legitimacy of the charity and its tax-exempt status. This is where Daffy comes in as a great option for a Donor-Advised Fund (DAF).
Daffy simplifies the process of finding and donating to charities. To check if your charity is already on Daffy, you simply need to find your charity's tax ID and use it to search on Daffy's platform. Daffy only lists organizations in its non-profit directory that are in good standing with the IRS, ensuring that your donations are going to legitimate and eligible charities.
Moreover, Daffy provides resources to help donors understand the tax benefits of charitable donations. For instance, you can deduct up to 60% of your Adjusted Gross Income (AGI) through charitable deductions, which can help reduce your taxable income and save you money on your tax bill.
Daffy's database includes every US-based not-for-profit organization in good standing with the IRS. However, if you can't find the charity you're looking for, Daffy's support team is ready to assist. They can help you find the charity or even add it to their platform.
Please note that Daffy Charitable Fund is registered in the United States, so it can only send donations to charities that have a U.S. mailing address and are tax-exempt under U.S. IRS code. Some international charities have U.S.-based affiliates that are registered with the IRS as 501(c)(3) organizations.
In conclusion, Daffy is a great option for a DAF as it simplifies the process of finding and donating to charities, provides resources to understand the tax benefits of charitable donations, and ensures that all listed charities are in good standing with the IRS.