When it comes to charitable donations, many people think of cash as the primary form of giving. However, there are several other types of donations that can be deducted from your taxes, including property such as clothing or household goods, and appreciated assets like stocks, ETFs, mutual funds, and even cryptocurrency. Donating appreciated assets can be particularly beneficial as it allows you to avoid paying capital gains tax on the appreciation, while still receiving a tax deduction for the full value of the asset. For the 2023 tax year, you can deduct up to 60% of your adjusted gross income (AGI) through charitable deductions, and up to 30% of your AGI for donations of appreciated assets. However, not all non-profits have the capability to receive donations in the form of stocks, ETFs, index funds, and cryptocurrencies. This is where donor-advised funds (DAFs) like Daffy come in. Daffy is a great option for a DAF as it allows you to make a tax-deductible contribution without having to immediately decide which charity to support. Your donation is invested and can grow, potentially increasing the impact of your giving. Daffy offers a variety of investment options, including stocks, bonds, and cryptocurrency. When you're ready to donate to your chosen charity, you can do so directly through the Daffy app, making it easy to track your deductions during tax season. For example, let's consider Leah, a senior manager at a tech company. She earns $200,000 a year and recently received a $20,000 bonus. Leah wants to give back, and by using Daffy, she can donate her bonus in the form of appreciated assets, avoid capital gains tax, and receive a tax deduction for the full value of her donation. In conclusion, while cash donations are common, there are several other types of donations that can be deducted from your taxes. Donor-advised funds like Daffy provide a flexible and tax-efficient way to give, allowing you to donate a variety of assets and potentially increase the impact of your giving.