Daffy Charitable Fund Member Agreement

Updated July 2024

Terms and Conditions

This Agreement outlines the policies, procedures, rules, and restrictions associated with opening, joining, and maintaining Daffy Charitable Fund (“Daffy”) donor-advised fund (“DAF”) accounts. Member participation in Daffy is subject to these terms and conditions. In engaging with Daffy and Daffy donor-advised fund accounts, members agree to accept and be bound by this Agreement. Daffy reserves the right to modify or change this Agreement at any time for any reason.

In the event of modifications or changes, Daffy will update the Agreement on the Daffy website: https://www.daffy.org/legal/agreement. Members are responsible for periodically reviewing this Agreement to be informed of updates.

About Daffy Charitable Fund

Daffy Charitable Fund

Daffy Charitable Fund (“Daffy”) is a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. Daffy is eligible to receive charitable contributions under IRC Section 170(c). As per IRS requirements, all contributions are irrevocable and Daffy Charitable Fund retains exclusive legal control over all assets held in a Daffy fund. Daffy does not provide legal or tax advice and we recommend all members consult a tax professional to assess their specific situation before claiming any income tax deduction.

Mission and Vision

Daffy, the Donor-Advised Fund For You®, is a charitable nonprofit with a simple mission: to help people be more generous, more often.

Our organization is inspired by a compelling vision: a world where everyone regularly puts something aside for those less fortunate than themselves.

Donor-Advised Funds

Daffy, a tax-exempt public charity, is a sponsoring organization that oversees and administers a tax-advantaged charitable giving vehicle known as a donor- advised fund (“DAF”).

When a donor becomes a member of Daffy, a new personal fund is created where they may provide recommendations to manage their personal and family charitable giving and all of their activities are separately maintained and accounted for. For details regarding how to form and use a Daffy member account, see the section entitled “Becoming a Daffy Member and Creating a Fund.”

Members may make a contribution to their fund at any time. Contributions to a fund are unconditional and irrevocable charitable donations to Daffy Charitable Fund, a recognized tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code, and as a result, members are generally eligible to take an immediate tax deduction for the calendar year when the contribution is made. For further information regarding the tax consequences of making a contribution to Daffy, see the section entitled “Tax Considerations.”

Members serve as an advisor over their fund with the ability to recommend how the fund is invested and distributed. Please note, however, that Daffy retains the ultimate authority and control over the assets in the fund.

Members may recommend that their fund be invested in one of several investment portfolios. Changes in the value to an investment portfolio are attributed to the fund and members can submit donation recommendations to an eligible charity up to the full available balance of the fund at any time. If a member’s portfolio includes assets that cannot be immediately liquidated, the available balance of the fund may be subject to additional fluctuation until the assets can be liquidated. For details regarding the investment of fund assets, see the section entitled “Investment Options.”

When a member is ready to support a charitable organization, they may recommend a donation to any public charity as long as the donation does not violate the donation restrictions detailed in this membership agreement. Once approved by Daffy at its sole discretion, the donation amount is deducted from the fund and the donation is sent directly to the charity. Donations may be attributed to the donor or made anonymously and there is an option to recommend how the donation will be used by the organization. For further information regarding recommending donations to charity, see the section entitled “Donation Recommendations.”

Membership

Becoming a Daffy Member and Creating a Fund

Only Daffy members are able to create or join a Daffy fund. New members can sign up for a Daffy account either through the mobile application available in the Apple AppStore™ or on the website at daffy.org. Daffy members first create a Daffy account by providing authentication credentials, as well as personal and financial information sufficient to ensure the safety and security of their own account as well as the Daffy community. This information includes but is not limited to: a member’s name, city of residence, and email address. If the member is creating a new fund, a link to a bank account, debit card, or credit card may be required. Additional information may be required to authorize transactions depending on the transaction size or its nature.

By becoming a member and opening a Daffy account, members are certifying that they will provide Daffy with accurate and complete personal identifying information and will notify Daffy of any changes. Daffy has the right to verify any information that is provided.

Eligibility
Subject to Daffy’s terms and conditions and applicable law, any individual 18 years or older, corporation, or trust may become a Daffy member, create a Daffy fund, or join an existing Daffy fund. Members residing outside the US may not be eligible for an income tax deduction for contributions to a Daffy fund. Daffy is not responsible for reviewing the authority of designees for any corporation or trust.

With Daffy for Families, members acting as an Organizer may invite additional individuals that are at least 13 years old to join their fund as a Family Member. Organizers are ultimately responsible to ensure that all family members invited to join a fund have the explicit permission of a parent or guardian and that anyone that joins their fund abides by the policies in this Member Agreement.

Account Access
Daffy members may access their accounts at any time on the Daffy mobile application or at daffy.org by logging in with their selected email address and password combination. For additional account security, options like two-factor authorization (“2FA”) are supported. Members are responsible for reviewing their accounts to ensure their accounts are secure. Daffy is not responsible for any losses resulting from account fraud, theft, or any other unauthorized activity.

Fund Identification
When a new member joins Daffy, they create or join an individual fund where the assets that they have contributed (after liquidation) are held and invested until donation(s) are made to charity or the account is terminated.

Each fund will have a public facing name that will be displayed on a member’s profile and will be provided to charities that receive approved donations from the fund. Fund names may be customized by any Organizer associated with the fund. Examples include: “The Doe Family Charitable Fund”, “The Jamie Doe Giving Fund”, and “The World Peace Fund”. All fund names are subject to Daffy’s Content Policy. Daffy reserves the right not to approve a name and may remove or edit the name until the member has an opportunity to update it.

  • Daffy for Families is designed to help families of all types give together more easily by allowing members to share their fund with other people in their family. The Daffy member who first creates the fund becomes an Organizer and may appoint one additional Organizer with equal access and privileges. Family funds can include up to 24 members total, with a maximum of 2 Organizers. Additional Family Members can make requests to the fund Organizers to make donation recommendations but cannot make contributions to the fund.
  • Organizers are donor-advisors for their fund. Organizers are independent members, each with their own account (username and password) and profile, and may be any individual, corporation, or trust, subject to Daffy’s eligibility requirements, regardless of family relation. Once added, each Organizer has equal access to the fund, including the ability to contribute at any time and recommend donations up to the full balance of the account without additional approval. Neither Organizer can be removed from the account by the other without their consent. Upon the death or incapacitation of an organizer, the second Organizer, if there is one, continues to manage the fund and the fund does not transfer to a successor until both Organizers are no longer able to manage it. Organizers are responsible for ensuring that all accepted donation recommendations and their public comments adhere to the restrictions detailed in this Member Agreement.
  • Family Members are additional members added to a fund with limited privileges. Family Members must be at least 13 years old and will have their own account (username and password) and profile (which is not visible outside of members of the Family fund for anyone under 18).
  • Financial Advisors are independent members, each with their own account (username and password) and profile, and may be any individual, corporation, or trust, subject to Daffy’s eligibility requirements, regardless of family relation. Financial Advisors are explicitly invited to join a fund by an Organizer and can be removed by an Organizer at any time. Financial advisors can be added to multiple fund accounts, and have the ability to perform any action on the fund account on behalf of an Organizer. Financial advisors are not publicly visible on the fund profile. When financial advisors perform actions on the fund account, they are assumed to be with the permission of the Organizer, and are represented as actions taken by the Organizer directly on the Daffy platform. By creating a Daffy account and performing actions on behalf of an Organizer, financial advisors may be deemed to be donor-advisors for purposes of Section 4966 of the Internal Revenue Code.
  • Daffy for Work is a program where employers may offer subsidized membership fees and offer contribution matching to employees who are Daffy members. Daffy members join a Daffy for Work account by either adding the employer specifically to their Daffy settings or by using an employer-specific link to open their Daffy account. In the case that a member’s account is linked to an employer, Daffy has the right to verify the member’s employment status periodically and share certain information with the employer regarding the member’s engagement with their Daffy account. This may include number and frequency of contributions and/or donations, total amount donated in a time period, and/or the dollar amount of specific donations for the purpose of making a matching donation. Although some employers may choose to cover the membership dues of an employee, membership levels and their corresponding dues still apply. Some employers may set a default charitable beneficiary to receive the proceeds of a member’s fund if the member has not set up their “Legacy Plan” (as hereinafter defined) and the account becomes dormant. Once Daffy is notified that the member is no longer employed with the sponsor or that the employer is terminating its sponsorship, the member will be responsible for all current and future membership dues.

Membership Levels and Dues

Each Daffy fund is evaluated monthly to determine its current membership level and the applicable membership fee. For the purpose of assessing a member’s current membership level, Daffy Charitable Fund considers both the features in use by the fund and the average annualized contributions to the fund. The average annualized contributions to a fund are defined as the average monthly contributions over the lifetime of the fund multiplied by 12. The average monthly contributions are calculated by dividing the total contributions over the lifetime of the fund by the age of the fund in months. Funds that have been opened less than 12 months are assessed based on their total contributions.

Daffy membership dues are based on the assessed level of membership and are currently charged on a monthly basis directly to each fund. Members can review the current membership dues for each level on the Daffy website: Membership Pricing.

If for any reason there is an insufficient balance in a member’s fund to cover dues owed, the member’s account will be suspended, and the member will be prompted to contribute additional funds. The account will remain suspended until additional funds are transferred by the member. Daffy reserves the right to schedule a minimum contribution to cover the difference in dues owed.

Daffy reserves the right to modify the features and privileges available to each level of membership, as well as the expected membership dues for each level.

For current information about the characteristics and features of each membership tier, please refer to the following page on the Daffy website: https://www.daffy.org/membership

Account Minimums and Limits

One-time Contributions
Daffy Charitable Fund sets minimum contributions based on the type of asset contributed:
  • Bank Transfer: $10
  • Debit or Credit Card: $10
  • Apple Pay: $10
  • Bank Wire: $1,000
  • Publicly traded stock, ETF, or Mutual Fund: $1,000
  • Crypto: Varies*
  • Private Stock: $10,000**
  • Partnership Interest: $10,000**

* When contributing crypto assets, please pay attention to the specific instructions and minimums for that particular type of asset. Failing to follow these instructions may result in the permanent loss of funds.

** Prospective donors should contact Daffy regarding any intended contribution of private stock or partnership interest before attempting to make such contribution.

Recurring Contributions
Recurring cash contributions have a minimum of $10 per week or $25 per month. Recurring contributions can be made with a linked bank account, debit card, credit card, or ApplePay™

Minimum Fund Balance and Fees
Daffy does not have a minimum fund balance and does not charge an annual minimum fee. This policy is subject to change.

Donations
An unlimited number of one-time or recurring donations may be recommended from a fund in any given month. A donation recommendation has a minimum amount of $10. If a member recommends a donation that exceeds the fund balance, Daffy offers the member the ability to schedule a contribution to fully fund the donation recommendation. Daffy will not approve a donation recommendation if sufficient funds are not available in the fund.

Donations to Daffy Charitable Fund
Members may make donation recommendations to Daffy Charitable Fund through the Daffy mobile application or website. All donations to Daffy Charitable Fund are considered unrestricted, and will be credited to the general fund of Daffy Charitable Fund.

Minimum Annual Distributions & Inactivity
Daffy members are encouraged to make regular and continuous contributions and donations throughout the year. If no donation recommendations are made from a fund for a continuous 12 month period, Daffy considers the fund “inactive” and, at Daffy’s sole discretion, may make a donation of $25 on behalf of the fund to either a charitable beneficiary or to Daffy’s general charitable fund.

In addition, for all inactive funds, Daffy will make multiple attempts to contact an associated member with the contact information provided. If the fund remains inactive for an additional 12 months period, then, at Daffy’s sole discretion, the fund’s Legacy Plan may be enacted at any time and the proceeds from liquidating the fund will be distributed pursuant to the Legacy Plan and the fund will be closed. If no Legacy Plan is in place, a distribution will be made to a charitable beneficiary or Daffy’s general charitable fund at the sole discretion of Daffy, and the fund will be closed.

Members are solely responsible for making sure their contact information is up to date and that they can receive email messages from Daffy Support.

Recordkeeping

Daffy will provide confirmations of transactions through the Daffy mobile application, website, or by email. While Daffy maintains these records for active members, members are advised to save these confirmations for their records.

Daffy provides an annual summary of contributions as well as other financial information or reports required by law. Daffy members also have access to investment valuations and financial performance through Daffy’s website.

If a donor contributes publicly traded securities or crypto assets, Daffy provides donors with confirmation of the quantity and an estimated fair market value of the contribution on the date of receipt, as well as the liquidated value attributed to the fund. Nevertheless, donors are completely responsible for the value they claim as a deduction on their tax returns. Daffy recommends that all members consult with a licensed tax professional for any items claimed on their tax returns.

Legacy Planning

After creating a fund, members are able to notify Daffy of a successor advisor or a charitable beneficiary for their fund (a “Legacy Plan”). Daffy must be directly notified of any successor advisor or charitable beneficiary. Testamentary instruments or instructions to an executor, personal representative, or agent will not be accepted. If a member dies, advisory privileges over the member’s fund will pass to any other Organizer associated with the fund. If there is no other Organizer, then the member’s Legacy Plan will be enacted.

If there are no remaining Organizers associated with the fund and a Legacy Plan was not submitted to Daffy by a member with authority to do so, any remaining balance will be transferred to Daffy’s general charitable fund.

In the case of Daffy for Work, an employer may set a default charitable beneficiary subject to Daffy’s approval and review process. The employee is able to update their Legacy Plan at any time.

Successor Advisors
Successor advisors are individuals or entities that a member appoints to take over as the advisor on a member’s fund when they pass away. All successors must meet Daffy’s eligibility criteria described above at the time they take over as the advisor on a fund. Upon knowledge of a member’s death, Daffy will do its best to contact a successor with the contact information provided by the member. The member is solely responsible for making sure Daffy has updated contact information for the successor.

At the time of the member’s passing, if the successor is ineligible, unreachable, unavailable or unwilling to take responsibility for the fund at that time, any remaining balance will be transferred to Daffy’s general charitable fund. Further information on Daffy’s successor advisor procedures is available on the Daffy website: FAQ - What is a Legacy Plan?.

Charitable Beneficiary
Charitable Beneficiaries are nonprofit organizations that may receive a donation subject to Daffy’s approval and review process when a fund’s Legacy Plan is enacted. Charitable beneficiaries must be permissible charitable organizations as described below. Upon notification of a member’s death, Daffy will review the charitable beneficiary designation and make an unrestricted donation to the charitable beneficiary of the liquidated fund’s proceeds in Daffy’s sole discretion. The member is solely responsible for making sure Daffy has the correct contact information for the organization and that the organization is still operable and in good standing with the IRS.

At the time of the member’s passing, if the charitable beneficiary is unreachable or no longer operable, or if the terms of the Legacy Plan violate Daffy’s Donation Use Restrictions as described below, any remaining balance will be transferred to Daffy’s general charitable fund.

Further information on Daffy’s charitable beneficiary procedures is available on the Daffy website: FAQ - What is a Legacy Plan?.

Content Policy

Members have several opportunities to customize their account profile and the information that is sent with every donation to charity. The information inputted by members does not represent the views or wishes of Daffy Charitable Fund.

Daffy does not permit content that is unlawful, harassing, inaccurate, libelous, defamatory, obscene, fraudulent, harmful, threatening, abusive, hateful, or is otherwise determined to be objectionable or inappropriate by us. Daffy reserves the right to remove or edit any content on its platform.

Error Policy

Members are responsible for notifying Daffy at support@daffy.org of any suspected errors in their account within 10 days of the error occurring. However, Daffy is not responsible for investment losses that may occur in an account due to an error. Please note that all contributions are irrevocable and may only be distributed to a 501(c)(3) public charity.

Terminating an Account

Members may request that their account be terminated at any time. If they are the last remaining member on a fund, they will be given an opportunity to submit their final donation recommendation, subject to the donation restrictions listed below. Once approved, the balance of the fund will be sent to the final charity or charities and their account and fund will be closed.

In the unlikely event that a member breaks this Member Agreement, Daffy reserves the right to terminate or lock their account. In the case of such an event, Daffy reserves the right to distribute the balance of an associated fund to Daffy’s general charitable fund.

Contributions

When a member adds cash or appreciated assets to their fund they are making an unconditional and irrevocable contribution to Daffy Charitable Fund, a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. Contributing members, depending on their individual tax situation, may be eligible to take an income tax deduction for the contribution for the year in which it was contributed. The contributed assets are no longer a part of the individual member’s personal estate and Daffy Charitable Fund retains exclusive legal control over all balances in a Daffy fund. While tax considerations are mentioned within this agreement and on daffy.org, Daffy does not provide legal or tax advice and we recommend all members consult a tax professional to assess their specific situation before claiming any income tax deduction.

By making a contribution, Daffy members certify that the assets they are contributing are completely and solely owned by the member and their spouse, from an account that allows for charitable distributions, and that there are sufficient funds to cover the contribution amount in such account.

Once received and settled all incoming contributions are deposited in the member’s fund. Please note that except under limited circumstances, all contributed non-cash assets will be liquidated and the final deposit into the member’s fund will be based on the actual proceeds of the liquidation, net of fees.

In the event of any liquidation, all deposits net of fees are then invested in the fund’s approved investment portfolio. Contributions remain in the fund until a donation is recommended or the account is terminated (as described in this agreement).

Acceptable Contributions

Daffy accepts the following contributions:

  • Debit or Credit Card
  • ApplePay™
  • Bank Transfer
  • Bank Wire
  • Publicly traded stocks, ETFs, and Mutual Funds
  • Transfers from existing donor-advised funds
  • Crypto (complete list of supported coins)
  • Private stock*
  • Partnership interests*

* Contributions of private stock and partnership interest will only be accepted in certain circumstances. Prospective donors should contact Daffy prior to attempting to make a contribution of private stock or partnership interests. Daffy reserves the right to reject a contribution to Daffy at any time for any reason and will return the contribution to the originating source.

Submitting a Contribution

Members should submit all contributions by going to the “Add Funds” section of daffy.org or our iOS mobile app. For all non-cash contributions, members should submit a contribution intent for every subsequent contribution.

Daffy is not responsible for any fees assessed or deducted by third-party platforms and services utilized by members to make contribitions, and will only credit member funds with the actual cash or assets received.

For additional information about our partners that process the contributions, detailed instructions are provided on the Daffy website: FAQ - Contributions.

Crypto Asset Contributions

There are unique requirements and risks when submitting crypto assets as contributions, based on the fundamental nature of those assets and the technical infrastructure they depend on. It is important that you understand these risks. Although Daffy works with third parties to make available an address to which crypto assets may be contributed, Daffy is not responsible for delays, errors, harms, or loss of funds caused by (i) any blockchain protocol, network, or distributed ledger technology (“Blockchain”), including the Bitcoin and Ethereum blockchains (or any Layer 0 or Layer 2 or other protocol relying on any such Blockchain) and/or any Protocol Uses (as defined below) (ii) the member or their agent (iii) software or technology utilized by the member, (iv) failure of any of member or their agent to follow transfer instructions, or understand or properly use any Blockchain, digital asset wallet, or other service or technology associated with any Blockchain; (v) actions or inactions of third parties or self-executing software or technology (including the Blockchains) which may have an adverse affect on any member, Daffy, or any fund (including malicious attacks, hacks, or failures of any Blockchain).

Daffy may choose to invest a portion of its assets in cryptocurrency as a component of its diversified investment portfolio and consistent with its overall prudent investment strategy. Organizers who recommend the investment of some or all of their account balance in cryptocurrecy should take note that crypto assets are a new and volatile asset class with known and unknown risks, and subject to technological failure, hacks, theft, exploitation, loss of reputation or available market, failures of maintenance, lack of adoption, regulatory uncertainty or enforcement, loss of developers or users on a network or Blockchain, and in turn and as a result of any of the foregoing, loss of potential value for the crypto asset (including total permanent loss of value) or harms or loss to crypto asset holders. Daffy makes no assurances regarding, and is not responsible for, any harm, loss, or claim, whether arising directly or indirectly, as a result of any member contributing crypto assets, or Daffy’s maintence, use (including for the Protocol Uses as defined below), liquidation, or distribution of crypto assets.

Once a crypto asset is received by Daffy, Daffy may, at its option: (i) liquidate the crypto asset or (ii) retain the crypto asset and use or deploy such asset for any permitted use allowed by the applicable Blockchain, including for purposes of staking (liquid or otherwise), governance, airdrops, forks emissions, awards, faucets, liquidity provision, or any other purpose (“Protocol Uses”). All crypto assets sent—by you or anyone or anything else (including in the case of any airdrops, forks, distributions, or otherwise), and including any crypto asset to which any applicable crypto asset or address shall accrue (such as in the case of airdrops, emissions, or awards) to the digital wallet address generated for your account and received by Daffy or other applicable addresses maintained by Daffy, shall accrue to the benefit of the general fund of the Daffy Charitable Fund, and Daffy may dispose, use (including for Protocol Uses), or liquidate them in its sole discretion. As a result of the risks associated with Blockchain technology and the Protocol Uses, it is possible that some or all of the amount of crypto assets contributed by a member may be lost or unavailable for distribution.

Additional Information
Members with existing donor-advised funds with other sponsoring organizations may request that all or a portion of their DAF be transferred to Daffy. This is generally done by submitting to their provider a donation recommendation for a transfer to Daffy Charitable Fund (Tax ID: 86-3177440).

Daffy is not responsible for processing delays, errors, or rejections caused by our partners, underlying or facilitating technology (including in the case of transfers related to cryptocurrency), a member’s financial institution, or failure, error, or intentional or unintential actions of a member, including failure to follow transferring instructions.

Irrevocability

All contributions to Daffy are unconditional and irrevocable. Once they have contributed to a fund, members have advisory privileges and consistent with this Agreement are able to recommend how a fund is invested and distributed. However, Daffy retains ultimate control over all fund assets.

Third-Party Contributors

In certain cases, individuals or entities other than a member may make a contribution into a fund. In that case, the originating donor will receive the receipt for the contribution. The member is not able to take a tax-deduction for those contributions. Members must notify Daffy of all third-party contributions before they are made so that the contribution is attributed to the correct fund when received.

Tax Considerations

This information is provided for educational purposes only and should not be construed as tax advice.

Daffy recommends that all members consult a tax professional to assess their specific financial situation before taking any action that may have tax implications.

Income Tax Deduction

Members may generally take a tax deduction after making a contribution to Daffy. Daffy Charitable Fund (Tax ID 86-3177440) is a tax-exempt 501(c)(3) public charity. This charitable deduction may be used to offset a portion of taxable income; however, the amount eligible for deduction varies depending on a donor’s filing status, income, and contribution made. Donors are only eligible for a tax deduction when making a contribution to Daffy; donors may not take an additional deduction when a donation is recommended from their fund to a charity.

For publicly traded securities owned for more than a year, the IRS defines the Fair Market Value (FMV) of a contributed asset to be the average of the high and low price on the date the contribution is effective. Daffy provides this information for the date the contribution was received which may not be the date the member relinquished control of the assets. All valuations listed are estimates and provided to help support our members in their tax filing needs. These valuations do not represent tax advice and Daffy does not guarantee the accuracy of the valuations provided. Members have full discretion on the date and the valuation claimed as a tax deduction. Generally, securities owned for less than a year may only be deducted at their original cost basis.

For contributions of non-cash assets, which may include crypto assets or non- publicly traded stock, the IRS has specific guidelines on assessing the fair market value of the assets donated, as well as procedural requirements around timing and documentation to substantiate the deduction based on the value of the contribution. Before making any contribution of this type, please refer to this documentation and consult with a tax professional.

Capital Gains Taxes

When a non-cash asset is contributed to Daffy, Daffy takes ownership of the asset and liquidates it as soon as practicable. The proceeds of the liquidation, net of any fees, are then deposited into the contributing member’s fund. Because Daffy, a tax-exempt entity, owns the asset at the time of liquidation, no capital gains taxes are assessed to Daffy members. Similarly, the fund may be invested and all investment gains are tax-free to the member.

Additional Reporting Requirements

Publicly Traded Stock
Members that have contributed non-cash assets valuing more than $500 and are claiming an income tax deduction may be required to include IRS Form 8283 with their tax filings. Please note that Daffy Charitable Fund is not required to sign the form for publicly-traded securities and that according to IRS Form 8283 instructions, for securities owned for more than a year, cost basis is not required.

Other Non-Cash Assets (Crypto, Private Stock, Partnership Interest)
Members that have contributed non-cash assets valuing more than $500 and are claiming an income tax deduction may be required to include IRS Form 8283 with their tax filings. Please note that Daffy Charitable Fund is not required to sign the form unless the non-publicly traded asset is valued over $5,000.

Please send all forms that require a signature to support+8283@daffy.org. For members who have contributed more than $5,000 in cryptocurrency, private stock, or partnership interests, the information provided by Daffy does not fulfill a member’s potential requirement to obtain a qualified appraisal per IRS Form 8283 and Daffy cannot provide appraisal services.

Additionally, Daffy is required to complete IRS Form 8282 upon the sale or exchange of the donated asset, listing the member’s name, identifying information, and contributed assets. Daffy will share this form with the member by email within 125 days of the disposition of the asset.

Investment Options

Investment Portfolios

Members who are Organizers of a Daffy fund may select from a variety of investment portfolios approved by Daffy Charitable Fund when making a recommendation to Daffy on how to invest their fund assets. These investment portfolios offer members the potential for their funds to grow tax- free, potentially providing additional funding available to the member to make donation recommendations to the charities of their choice.

Daffy members can make a recommendation for new investments or changes in their portfolio for their fund account once every thirty (30) days. Once approved, transitioning a fund account to a new portfolio may take up to fourteen (14) days. During that period, fund assets may be invested in cash for a period of time. Daffy Charitable Fund is not liable for any missed investment gains that accrue during the portfolio transition period.

Daffy investment portfolios have been designed to offer a range of investment characteristics including volatility and other forms of risk as well as expected return.

Currently, Daffy offers portfolios that consist exclusively of assets approved by Daffy Charitable Fund. These assets include a variety of instruments, including public market exchange-traded funds (“ETFs”), money market funds, and selected crypto assets, such as Bitcoin and Ethereum.

All investment portfolios are subject to change by Daffy at any time. Daffy retains full authority and control over the donor-advised fund accounts, and may change the available list of approved investment assets and investment portfolios at any time. Investments may carry significant risk of volatility, and Daffy does not guarantee that an invested fund or asset will earn any positive rate of return. Daffy will not be liable for any diminution in the value of a fund or asset, including losses that may occur from investing in any portfolio or asset or the disposition of any asset.

Portfolios invested in crypto assets, such as Bitcoin or Ethereum, are subject to several unique regulatory, technical, and financial risks that may impact the value of donor-advised fund accounts invested in those assets. Some crypto assets may offer unique opportunities, like staking, depending on their technology platform. For technical and operational purposes, Daffy may, in its sole discretion, implement features like staking or use crypto assets contributed to a fund for Protocol Uses. Any incidental crypto assets generated through these activities will accrue solely to Daffy Charitable Fund for operational use, and each member indemnifies and holds harmless Daffy and its affiliates and agents from any loss in value, harm, or other losses and claims related to the Protocol Uses. Daffy will not be liable for any diminution in the value of funds invested in crypto assets, including losses that may occur in these portfolios for any reason.

For a complete list of current portfolios offered by Daffy, please refer to the Daffy website: https://www.daffy.org/portfolios.

Daffy does not and will not provide members with investment advice. Daffy recommends that members with financial questions or concerns consult with a certified financial professional.

Investment Advisor

Daffy may retain the services of one or more investment advisors to assist with the construction of investment portfolio options. However, Daffy is not and will not be acting in the capacity of a registered investment company or a registered investment adviser (as such term is defined by the Investment Advisers Act of 1940 or any state law) or an agent to any member or other third-party customer or client. Further, pursuant to available exemptions under the Investment Company Act of 1940 and Investment Advisers Act of 1940, Daffy qualifies for an exemption from registration as a registered investment company and a registered investment adviser, respectively. Daffy will utilize the services of a registered broker-dealer in connection with the investment of its assets and is not responsible for any system or software failures of any third-party, including such broker-dealer.

Donation Recommendations

Recommending a Donation

Members may submit a donation recommendation at any time after a fund has been created and its initial contribution has been scheduled. While Daffy attempts to fulfill all recommendations that meet our guidelines, member recommendations are only advisory. Daffy retains ultimate control over Daffy funds and reserves the right to deny any donation recommendation for any reason. In the event this were to occur, Daffy generally notifies members of a denial within thirty (30) days of the recommendation being submitted and will cancel the donation recommendation. Members may not impose restrictions or conditions on the assets in a fund. Donations that have already been approved and issued cannot be canceled by the member.

Family Members on a fund do not have the ability to submit a donation recommendation at their own discretion. Family Members can make donation requests to the Organizer(s) on their fund. Organizers associated with the fund are responsible for reviewing the request and accepting, modifying, or denying the request before it is submitted to Daffy as a donation recommendation. By accepting a donation request, an Organizer certifies that the donation recommendation adheres to the restrictions detailed below.

All donation recommendations submitted by a member identified as a financial advisor on the fund account are assumed to have been made with the full explicit authorization of the Organizer(s) and will be assessed identically to any recommendation made by the Organizer(s) directly.

Recognition and Anonymity
When recommending a donation, a Daffy member may request to be identified to the recipient charity by name, contact information, and fund name. Under IRS guidance, naming rights are an incidental benefit, so members are permitted to receive naming rights upon recommending a donation. Alternatively, a donation may be made anonymously and the members associated with the fund will not be identified to recipient charities. Daffy reserves the right to limit anonymity under certain circumstances.

Public and Private Notes
When recommending a donation, a Daffy member may include a note to be publicly displayed on the charity’s and member’s profile. This note is intended to be a generalized explanation of why the member supports the selected charity and should not convey any instructions for the particular donation recommendation.

Additionally, Daffy members may also include a private note with a donation recommendation that is shared with the recipient organization. This note may be used to convey the member’s non-binding recommendation on how the donation is to be used.

Daffy reviews all public and private notes to ensure that all donations adhere to the Donation Use Restrictions listed below as well as our Content Policy.

Recurring Donation Recommendations
Donation recommendations may be set up on a recurring basis. Daffy will verify the donation recommendation at the time of each submission and each payment. Recurring donation recommendations are subject to the same Donation Use Restrictions listed in this agreement.

Daffy may suspend a recurring donation recommendation if the fund does not have sufficient balance to cover a new donation or if the charity is no longer eligible to receive a donation. Members will be notified of any suspended recurring donations and will be given a chance to contribute funds and reactivate their donation recommendation. A recurring donation recommendation may be canceled at any time; however, if a recurrence is already in process it may not be cancelable.

Charitable Recipients

Permissible Recipients
A donation may be recommended to any charity deemed eligible by Daffy.

Daffy limits charitable recipients to U.S. 501(c)(3) private operating foundations described in Section 4942(j)(3) of the Internal Revenue Code and public charities described in Section 509(a)(1) or 509(a)(2) of the Internal Revenue Code that are in good standing with the Internal Revenue Service (“IRS”). Daffy derives its selection from the IRS Exempt Organizations Business Master File.

Additionally, tax-exempt organizations that are not required to file with the IRS, such as churches and government entities like public schools, may be eligible to receive a donation on a case-by-case basis. An organization appearing in the Daffy charity search tool does not guarantee that a donation to that organization will be approved as Daffy reaffirms its eligibility periodically.

Donation recommendations to charitable organizations located within or otherwise registered with the State of California may not be approved if the charity is not currently in good standing with the state under its charitable trust and solicitation laws. If an organization is not currently in good standing in California, Daffy may contact the organization directly to help assess whether they are currently eligible to receive a donation from Daffy Charitable Fund.

Members that wish to donate to organizations that are currently not listed may submit them from the Daffy website or application, or send them directly to Daffy Support (email: support@daffy.org). Please include the mailing address, Tax ID (EIN), website, and current contact information if possible. Daffy will do its best to contact the organization, verify its tax-exempt status, and add it to the database. Daffy is not responsible for unresponsive organizations or organizations that won’t share the proper information necessary to be deemed eligible.

Daffy reserves the right to modify its list of permissible charitable recipients and eligibility criteria at any time for any reason.

Impermissible Recipients
Daffy does not permit members to recommend donations to:

  • non-U.S. charitable organizations
  • private foundations that are not classified as operating foundations
  • Section 509(a)(3) supporting organizations
  • natural persons
  • employer-sponsored disaster relief funds

Daffy prohibits members from recommending donations to known or suspected terrorists or organizations known to support terrorists. Accordingly, Daffy prohibits donations to organizations listed on the U.S. Treasury Department’s Office of Foreign Assets Control Specifically Designated Nationals and Blocked Persons List, or any other similar list maintained by an applicable government agency.

Daffy may also use at its sole discretion third-party services and lists to evaluate the eligibility of charitable organizations for donations.

Donation Use Restrictions

Donation recommendations may not be made for any non-charitable or improper purpose. Members may not recommend donations that:

  • Satisfy a pre-existing, legally-binding pledge or obligation for their private benefit
  • Provide more than an incidental benefit to the member, or any of the aforementioned’s family or 35% controlled entity (together, a “Disqualified Person”). Examples include, but are not limited to:
    • payment for tuition
    • tickets to a gala
    • auction items
    • certain annual membership benefits offered in exchange for a payment of more than $75
  • Cover any portion of a donation that would result in anything more than an incidental benefit accruing to a Disqualified Person, even if that portion is deemed tax-deductible by the charity (known as bifurcated gifts). For example, if a non-profit sells a ticket to a fundraising event for $200 and claims that $100 of the donation is tax deductible, neither portion of the donation can be paid for from the member’s Daffy account.
  • Will be used for lobbying purposes, political contributions, or to support political campaign activities
  • Benefit an individual selected by the member. Note that members may designate donations to educational, scholarship or missionary funds or awards, as long as the charity exercises full control and discretion in determining the recipient and that the individual selected is not a Disqualified Person or chosen by a Disqualified Person.

Members will be required to affirm that their donation recommendation adheres with this policy each time a donation recommendation is made and members accept all responsibility for ensuring donation recommendations conform to the Internal Revenue Code and Daffy policies.

Donation Recommendation Processing and Timeline

Donation Recommendation Review
Daffy reviews all donation recommendations to ensure donations are made for qualified charitable purposes and to a permissible organization. Such review shall be conducted by a committee selected by the Daffy Charitable Fund Board of Directors (the “Board”) on an ongoing basis and include (a) verification of the tax-exempt status of the proposed recipient and (b) confirmation that the funds will be used for charitable purposes and that there are no impermissible benefits.

Recommendations are subject to Daffy’s “variance power.” This variance power gives Daffy the authority to modify any donor recommendation or condition on donations from a fund for any specified charitable purpose or to any specified charitable organization if, in the sole judgment of Daffy, such recommendation or condition becomes unnecessary, incapable of fulfillment or inconsistent with this Membership Agreement. Daffy retains the ultimate decision-making authority and reserves the right to deny a donation recommendation. Moreover, Daffy will reject a recommendation if it is aware that the donor advisor has an improper purpose in recommending the donation. Daffy will also take remedial action if it discovers it has made improper donations, including requiring that the donation be returned.

Distributing Donations to Charities
Daffy endeavors to process donations to charitable recipients on a daily basis, subject to any delays which may be required or caused by applicable law, settlement times, technological restrictions on transfer, or otherwise. For each approved donation, the fund’s portfolio is liquidated as applicable to cover the amount of the donation and Daffy distributes the proceeds to selected charities by check or, if possible, electronic transfer. The member’s selected acknowledgment and private note are transmitted with the payment. Donations from multiple funds to the same charity may be combined into one payment transmission.

Members are notified if a donation is undeliverable to their recommended charity and may make an alternate donation recommendation. Charitable recipients are required to return a check if they are aware that the donation violates this Member Agreement, including all Donation Restrictions.

Employer Matching Gift Programs
Some employers may match a member’s donations to charitable organizations from the member’s Daffy account. Once a donation has been processed, a member may use the Donation Receipt as proof of the donation. The donation receipt is sent by email to the member at the time the donation is processed as well as accessed through the Daffy website or mobile application The employer will be responsible for processing the matching gift and, if they choose to match, will send the donation directly to the recipient charity. Daffy is not responsible for tracking, processing, or determining the eligibility of any employer matching gifts.

Campaigns

Daffy Campaigns allow members to create a simple destination for Daffy members to make donations to a set of charities supported by the Daffy Charitable Fund. Campaign organizers may choose up to six charities per campaign, set a fundraising goal, and share why they are inspired to give to the selected organizations. To help with fundraising efforts, organizers are encouraged to share their campaign with their network of friends, family, and colleagues.

Campaigns must adhere to the policies in this agreement, most notably the Content and Donations Policies. Daffy reserves the right to end a campaign at any time. Recipient organizations may not have provided permission for any particular campaign and have not reviewed the content.

All donation recommendations submitted through a Daffy Campaign must be made by a Daffy Member. Any non-member who decides to make a donation recommendation on a Daffy Campaign will first be asked to confirm their acceptance of this Daffy Member Agreement.

To report a campaign that is against Daffy policy, please email Daffy Support.

Organizers
Daffy members who are organizers of a fund, subject to the eligibility terms above, may create a Campaign. For each campaign, an organizer may edit the content and pictures, the list of supported charities, and the fundraising goal. Organizers may end a campaign at any time.

Matching
Organizers may choose to match donations to a campaign from their fund up to a fixed amount. Matching dollars must be in a member’s fund at the time the campaign is published and remain there until the campaign is completed.

Once a donation recommendation through the campaign is approved, if there are matching funds available, a matching donation recommendation will automatically be created in the Organizer’s Daffy fund. The balance of the match is tracked on the Campaign page. Organizers have the option at Campaign creation to donate any remaining balance of the match at the end of the campaign.

Recipient Charities
Organizers may select any charity that is currently eligible to receive a donation on Daffy to be a recipient charity for a campaign. Please see Permissible Recipients above for full details about an organization’s eligibility. If there are multiple charities listed on a campaign, a donor must create a donation recommendation for a specific organization.Each recipient charity and corresponding donation recommendation is subject to review and approval by the same standards as any other donation by the Daffy Charitable Fund.

Recipient Charities may not edit the content of a campaign, but they may report inaccurate information or request that a campaign be suspended.

Daffy will endeavor to review donation recommendations to charities on a daily basis and send approved donations are in batched payments on a weekly basis. All donation payments are sent by USPS mail and will include a link to the campaign, the name of the organizer, and a breakdown of selected donor information and corresponding matches.

In the rare event that Daffy is unable to fulfill a donation request to a selected charity, the donor will be notified and given the opportunity to choose another charity. This may occur if the charity is unresponsive or if the charity is no longer in good standing with regulatory authorities. The amount of the contribution will be kept in their Daffy fund until they submit a new donation recommendation.

Regulatory and Governance

Relationship with Aside, Inc.

Aside, Inc. provides Daffy with technical and operational services, including managing the Daffy Charitable Fund mobile application and website. All Daffy member information is shared with Aside, Inc. employees as needed to properly service and support DAF accounts held by Daffy. Aside, Inc. owns and licenses the intellectual property Daffy utilizes in connection with its charitable giving platform. Daffy pays Aside, Inc. fair market value for its platform license and services.

Governing law

This Agreement shall be construed in accordance with the laws of the State of Delaware, and the rights and obligations of the parties to this Agreement shall be governed by the laws of the State of Delaware.

Additional Information

Any questions about this Agreement or requests for further information may be directed to policy@daffy.org, or in writing to Daffy Charitable Fund at 221 Main Street, #2061, Los Altos, CA 94023.

State Registration

Daffy Charitable Fund is a charitable organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code, and as such, is registered to solicit in all those states where it is required to do so. Certain states require us to include disclosure language on all printed solicitations.

Financial and other information about Daffy Charitable Fund’s purpose, programs and activities can be obtained by contacting Daffy Charitable Fund at 221 Main Street, #2061, Los Altos, CA 94023 or at support@daffy.org, or as stated below.

Colorado: Colorado residents may obtain copies of registration and financial documents of Daffy Charitable Fund from the office of the Secretary of State, (303) 894-2680, https://www.sos.state.co.us/, re: Reg. No. 20213028533.

Florida: SC No.01008 A copy of the official registration and financial information of Daffy Charitable Fund may be obtained from the division of consumer services by calling toll-free, within the state, 1-800-HELP-FLA or via the internet at https://www.fdacs.gov/.

Georgia: A full and fair description of the programs and activities of Daffy Charitable Fund and its financial statement are available upon request at the address indicated above.

Illinois: Contracts and reports regarding Daffy Charitable Fund are on file with the Illinois Attorney General.

Kansas: In Kansas, Daffy’s Charitable Fund’s license number is 21-029230.

Maryland: For the cost of postage and copying, documents and information of Daffy Charitable Fund filed under the Maryland charitable organizations laws can be obtained from the Secretary of State, Charitable Division, State House, Annapolis, MD 21401, (800) 825-4510.

Michigan: MICS 64105.

Mississippi: The official registration and financial information of Daffy Charitable Fund may be obtained from the Mississippi Secretary of State's office by calling 1-888-236-6167.

Nevada: The state of incorporation of Daffy Charitable Fund is E18909992021-6.

New Jersey: Information filed with the attorney general concerning this charitable solicitation and percentage of contributions received by Daffy Charitable Fund during the last reporting period that were dedicated to the charitable purpose may be obtained from the attorney general of the state of New Jersey by calling (973) 504-6215 and is available on the web at https://www.state.nj.us/lps/ca/charfrm.htm.

New York: Upon request, from the Attorney General Charities Bureau, 120 Broadway, New York, NY 10271.

North Carolina: Financial information about Daffy Charitable Fund and a copy of its license are available from the State Solicitation Licensing Branch at 1-888-830-4989 within (within North Carolina) or (919) 807-2214 (outside North Carolina).

Pennsylvania: The official registration and financial information of Daffy Charitable Fund may be obtained from the Pennsylvania Department of State by calling toll-free, within Pennsylvania, 1-800-732-0999.

Virginia: Financial statements of Daffy Charitable Fund are available from the State Office of Consumer Affairs, PO. Box 1163, Richmond, VA 23218.

Washington: The notice of solicitation required by the Charitable Solicitation Act is on file with the Washington Secretary of State, and information relating to financial affairs of Daffy Charitable Fund is available from the Secretary of State, and the toll-free number for Washington residents: 1-800-332-4483.

West Virginia: West Virginia residents may obtain a summary of the registration and financial documents of Daffy Charitable Fund from the Secretary of State, State Capitol, Charleston, WV 25305. Inquiries can also be made to Adam Nash at Daffy Charitable Fund. Contributions are deductible for federal income tax purposes in accordance with applicable law.

Registration in the above states does not imply endorsement, approval or recommendation of Daffy Charitable Fund by the state.