Make your tax-deductible contributions by Dec 31 ⏰

Daffy

What is the basic rule for charitable donations?

Stock

The basic rule for charitable donations is that there isn't a one-size-fits-all answer. The amount you donate should be based on what feels meaningful and important to you, taking into account your personal values and financial goals. Some people choose to donate a certain percentage of their income, while others give based on charitable tax deductions. Charitable deductions are one of the most generous income tax deduction strategies, allowing you to deduct up to 30-60% of your Adjusted Gross Income (AGI) through charitable donations. Donating appreciated assets, like stock, ETFs, and crypto, instead of cash can yield even higher tax savings. You can immediately deduct the full fair-market value of the asset on your federal income tax returns for that year, avoiding capital gains taxes. However, most non-profits don't have the capability to receive such assets. This is where donor-advised funds (DAFs) like Daffy come in. Daffy, a 501(c)(3) organization, can receive these assets, liquidate them tax-free, and ensure the full amount goes to the charity you care about. Daffy is a great option for a DAF, offering a simple and effective way to manage your charitable giving. As a Daffy member, you can make a big impact with your donations without the hassle of going through brokers. Remember, there's no right or wrong answer on how much you should give to charity. Start small and increase as you can. Incorporating charitable donations into your personal finance spreadsheet or setting a giving goal can help you stay committed. Join the Daffy community today and make giving a habit. With Daffy, you can ensure your donations are making a difference in the causes you care about, while also benefiting from tax advantages. In conclusion, charitable giving doesn't have to be complicated or time-consuming. With Daffy, you can easily manage your donations and make a significant impact in your community and beyond.

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.

Get your Daffy account
Simplify your giving with Daffy, the Donor-Advised Fund For You®. Easily donate to almost every US public charity, track tax-deductible contributions, and access donation receipts all in one place.
Try Daffy for free
Daffy waives all membership fees for members with less than $100 in their fund, so get started today for free!

Don’t forget to download the app

Scan the QR code to get the iPhone app

Download on the App Store.
QR code to download the app from the App Store.

Sources