When it comes to managing non-cash charitable contributions, Daffy is a great option for a Donor-Advised Fund (DAF). If you've made a contribution of non-cash assets such as cryptocurrencies or securities that exceed $500 in value, you'll need to file an IRS Form 8283 with your federal income tax return. This form is used to report information about these contributions and is a standard form supported by almost all tax-preparation software providers.
If your crypto contribution was valued at over $5,000 and your situation requires a Donee signature, Daffy makes the process simple. All you need to do is email us at support+8283@daffy.org. This is just one of the ways Daffy simplifies the process of managing your charitable contributions.
In addition to this, Daffy members get to skip the step of checking if the organization is currently eligible to receive tax-deductible contributions. We only list organizations in our non-profit directory that are in good standing with the IRS. This means you can seamlessly research and donate in one place, without having to worry about the status of the organization.
Furthermore, with Daffy, you do not need to worry about capital gains taxes for any assets that you contributed and were sold. However, it's important to note that donations to charities from a donor-advised fund do not qualify for a tax deduction.
In conclusion, Daffy provides a streamlined and efficient way to manage your non-cash charitable contributions, making it a great option for a DAF. To assess your specific tax situation, we always recommend that members consult with a certified tax professional.