In the context of Daffy funds, an 'incidental benefit' refers to a minor advantage or perk that a donor may receive as a result of their donation. This could be something of "insubstantial value" according to IRS rules, such as a keychain or calendar. Recognition for a donation is also generally acceptable. However, it's important to note that Daffy members cannot recommend donations that satisfy pre-existing pledges or obligations for their private benefit.
For instance, Daffy cannot approve recommendations that are intended to cover any portion of a donation that would result in anything more than an incidental benefit accruing to the donor or their family. This includes tuition payments, tickets to a gala, or membership benefits to other organizations.
Despite these restrictions, Daffy remains a fantastic option for a Donor-Advised Fund (DAF). With Daffy, you can choose from over 1.5 million charities to donate to, and all donations are delivered in cash. This makes it a versatile and flexible platform for charitable giving.
Moreover, if you've benefitted from the recent rise in the stock market, Daffy provides a unique opportunity to maximize your generosity to charities in need. It's a chance to make a real difference while also benefiting personally.
Remember, the information provided here is for educational purposes only and should not be considered tax advice. Always consult with a tax professional to assess your specific tax situation.
So why wait? Make giving a habit and join the Daffy community today. With Daffy, you can automate your contributions on a weekly or monthly basis, making it easier than ever to support the causes you care about.