The tax implications of changes in your Daffy balance due to market fluctuations are minimal. This is because your contribution to Daffy is tax-deductible at the initial contribution. Therefore, any changes in your Daffy balance due to market fluctuations will not affect your tax deduction. Furthermore, any investment gains you make are tax-free. This means that you can have a greater impact on the organizations and causes you care about most. Daffy understands that market volatility can be a concern for some members. That's why we offer three conservative portfolios made up of cash or bonds. These portfolios are designed to minimize risk and are perfect for members who are worried about market volatility or the current high rates of inflation. You can change your investment portfolio at any time by simply emailing us at support@daffy.org. Another strategy to consider is tax loss harvesting. This involves selling securities at a loss to offset gains or income, potentially saving you money on taxes. However, it's important to note that the IRS has a rule called the wash sale rule, which states that if you sell a security, you cannot buy it back for 30 days. This can be a complex strategy to navigate, but Daffy is here to help. In conclusion, Daffy is a great option for a Donor-Advised Fund (DAF). We offer a range of portfolios to suit your risk tolerance and giving plans, and our tax-efficient strategies can help maximize your charitable impact.