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Daffy Charitable Fund Member Agreement

Updated May 2022

Terms and Conditions

This Agreement outlines the policies, procedures, rules, and restrictions associated with opening and maintaining Daffy donor-advised fund 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. Subject to IRS rules and guidelines governing DAF operations, 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. Members are responsible for periodically reviewing this Agreement to be informed of updates.

About Daffy Charitable Fund

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, they are assigned a customized DAF account where they may provide recommendations to manage their personal and family charitable giving and all of their activities are separately maintained and accounted for.
  • Members may make a contribution to their DAF account at any time. Contributions to a DAF account are unconditional and irrevocable charitable donations to Daffy Charitable Fund, and as a result, members are generally eligible to take an immediate tax deduction for the calendar year when the contribution is made. All contributed non-cash assets are liquidated and the member is not responsible for capital gains taxes associated with such dispositions.
  • Members serve as an advisor over their account with the ability to recommend how the account is invested and distributed. Please note, however, that Daffy retains the ultimate authority and control over the assets in the account.
  • Donors may choose from several investment portfolios that allow the account to grow tax-free. All investment gains or losses are attributed to the account and the full balance of the account may be donated to charity.
  • When a donor 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 prohibitions detailed below. Once approved, the donation amount is deducted from the DAF account and the donation is sent directly to the charity in the form of cash. 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. At least one donation must be made every year.

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 funds held in a Daffy account. 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.

Membership

Becoming a Daffy Member and Opening a DAF Account

Daffy accounts are only available to Daffy members. New members can join Daffy either through the mobile application available in the Apple AppStore™ or by signing up at daffy.org. Daffy members are asked to provide 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, email address, and a link to a bank account, debit card, or credit card. 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.

Additionally, members will set up their profile and select their investment portfolio. Members are asked to take the Daffy Pledge or fund their account.

Eligibility
Any individual over 18 years of age, corporation, or trust may become a Daffy member and open a DAF account, provided the individual or entity has a U.S.-based bank account. However, members residing outside the US may not be eligible for an income tax deduction for contributions to a Daffy donor-advised fund account. Daffy is not responsible for reviewing the authority of designees for any corporation or trust.

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 username 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.

Please note that a username and email address can only access one Daffy account. Members with more than one account, including family accounts, will need to create multiple usernames.

Account Identification
Each Daffy member is assigned an individual account where the assets that they have contributed (after liquidation) are held and invested until the member recommends a donation to charity or the account is terminated.

Daffy members have an opportunity to name their account which will be the public name of their donor-advised fund. It will be displayed on their account profile and with charities that are receiving donations from their account. Examples of account names include: “The Doe Family Charitable Fund”, “The Jamie Doe Giving Fund”, and “World Peace Fund”. All account names are subject to Daffy’s Content Policy below. Daffy reserves the right not to approve a name for a Daffy account and may remove or edit the name until the member has an opportunity to update it.

Personal Accounts
When a Daffy account is first opened, the account is set up as a personal account. The member has full responsibility for funding the account and recommending investments and donations. The member has an option to name a successor for the account in the case of their death or incapacitation.

Family Accounts
Daffy members may share their account with one additional member advisor. Membership dues are currently waived for the second member, and subject to Daffy’s eligibility requirements, any individual, corporation, or trust may be added regardless of family relation. Once added, the additional member will have equal access to the Daffy account, including the ability to recommend donations up to the full balance of the account. Neither member can be removed from the account by the other member without their consent. Upon the death or incapacitation of a member, the second member continues to manage the account and the account does not transfer to a successor until both members are no longer able to manage it.

Employer Sponsored Accounts
Employers may encourage their employees to open a Daffy account and possibly fund the account and/or cover the membership dues. 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 the Daffy account (for example, number and frequency of contributions and/or donations.) Some employers may set a default charitable beneficiary to receive the funds 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 future fees.

Membership Levels and Dues

Daffy currently offers different levels of membership based on the features selected by each member, as well as the level of support the member provides. This membership is supported by monthly membership dues, as outlined below.

  • Daffy Contributors are provided access to their unique Daffy donor-advised fund. Recurring and one-time contributions can be made through a linked bank-account, debit or credit card, or ApplePay™. Additionally, Daffy Contributors are able to contribute up to $25,000 worth of publicly traded stock, crypto, or cash transfers from other donor-advised funds during the lifetime of the account. Daffy Contributors can select between a range of portfolios to invest their accounts including options invested in global stocks, bonds, and crypto assets. Daffy Contributors with less than $100 in their account are not assessed a monthly membership fee.
  • Daffy Benefactors are provided access to all of the same features and capabilities as Daffy Contributors, with the added ability to make unlimited contributions of publicly-traded stocks, crypto, or cash transfers from other donor-advised funds.

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.

Membership Dues
Daffy membership dues are based on level of membership and are currently charged on a monthly basis. Members can review the membership dues for each level on the Daffy website at: https://www.daffy.org/membership.

Membership dues are charged directly to each DAF account. If there are insufficient funds in a member’s DAF account, the 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.

Account Minimums and Limits

Initial Funding
There are minimum contribution amounts required to open and fund a Daffy donor-advised fund. All DAF accounts require an initial one-time contribution of at least $100 or a commitment to take the Daffy Pledge with a recurring contribution.

One-time Contributions
After the initial funding, one-time contributions of cash have no minimum. The minimum contribution of stock is $1,000, and the minimum contribution of Bitcoin is 0.001 BTC (10,000 Satoshis). Cumulative contributions over $25,000 worth of publicly traded stock, crypto, or cash transfers from other donor-advised funds will automatically upgrade a member to the Benefactor membership level.

Recurring Contributions
Members may choose to set up a recurring cash contribution (known as the “Daffy Pledge”) with a minimum of $10 per week or $25 per month. Recurring contributions can be made with a linked bank account or credit/debit card.

Minimum Account Balance and Fees
Unlike other donor-advised funds Daffy does not have a minimum account balance and does not charge an annual minimum fee. This policy is subject to change.

Donations
Members may recommend an unlimited number of one-time or recurring donations in any given month. The minimum donation recommendation is $18. If a member recommends a donation that exceeds the DAF account balance, Daffy offers the member the ability to schedule a contribution to fully fund the donation recommendation. Daffy only approves a donation recommendation if sufficient funds are available in the member’s DAF account.

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 an account for a continuous 12-month period, Daffy considers the account “inactive” and will make a donation of $25 on behalf of the DAF account to a charitable beneficiary, in Daffy’s sole discretion, or to Daffy’s general charitable fund within the sole discretion of Daffy.

For all inactive accounts, Daffy will make multiple attempts to contact the member with the contact information provided. If the account remains “inactive” for an additional 12 months period, then the account’s Legacy Plan will be enacted and any remaining funds in the DAF account will be distributed accordingly and the account 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 within the sole discretion of Daffy and the account 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 (support@daffy.org).

Recordkeeping

Daffy will provide confirmations of account 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 performance information through Daffy’s account portals.

If a donor contributes publicly-traded securities or crypto assets, Daffy provides donors with confirmation of the quantity and price of the contribution on the date of receipt, as well as the liquidated value of the contribution to the DAF account. Nevertheless, donors are completely responsible for the value they claim as a deduction on their tax returns.

Legacy Planning

After opening a DAF account with Daffy, members are able to notify Daffy of a successor advisor or a charitable beneficiary for their account (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, control over the member’s account will pass to the member’s named successor or a donation for the full amount of the account will be made to the member’s charitable beneficiary in Daffy’s sole discretion. However, if there is already an additional member advisor listed on the account, that person will remain as the advisor for the account and the Legacy Plan will not be enacted. A Legacy Plan may be updated at any time by any member associated with an account.

If there are no remaining member advisors on the account and the member has not selected a successor or charitable beneficiary, any remaining balance will be transferred to Daffy’s general charitable fund upon the member’s death.

In the case of an Employer Sponsored Account, an employer may set a default charitable beneficiary subject to Daffy’s approval and review process. The member 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 account when they pass away. All successors must meet Daffy’s eligibility criteria described above. 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 unreachable, unavailable or unwilling to take responsibility for the account, any remaining balance will be transferred to Daffy’s general charitable fund. Further information on Daffy’s successor advisor procedures is available here: https://intercom.help/daffy/en/articles/6296133-what-is-a-legacy-plan.

Charitable Beneficiary
Charitable beneficiaries are nonprofit organizations that may receive a donation check subject to Daffy’s approval and review process when a member passes away. 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 full balance of the account 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 here: https://intercom.help/daffy/en/articles/6296133-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 provided by members do 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. Members will be given an opportunity to submit their final donation recommendation, subject to the donation restrictions listed below. Once approved, the balance of the account will be sent to the final charity and the account 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 will distribute the remaining funds to Daffy’s general charitable fund.

Contributions

Members may fund their account by 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. 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 funds held in a Daffy account. 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, in an account that allows for charitable distributions, and that there are sufficient funds to cover the contribution amount.

Once received and settled all incoming contributions are deposited in the member’s Daffy account. Please note that all non-cash assets are liquidated. Members are not responsible for capital gains tax when the tax-exempt organization sells their contributed appreciated asset. The final deposit into the donor-advised fund is based on the actual sale price of the stock, net of fees (which may not match the value listed on the Tax Receipt - see Tax Considerations below).

All deposits are then invested in the member’s selected investment portfolio. Contributions made to an account remain in that member’s account until a donation is recommended or the account is terminated (as described herein).

Acceptable Contributions

Daffy members may make the following types of contributions to their DAF account:

Minimums and limits apply - see Account Minimums and Limits.

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 stock, crypto and DAF transfers, members should submit a contribution intent for every subsequent contribution. Please see our FAQs for additional information about our partners that process the contributions, detailed instructions on how to submit stock and DAF Transfer contributions, and contribution timing. Daffy is not responsible for processing delays, errors, or rejections caused by our partners or a member’s financial institution.

Irrevocability

All contributions to a DAF account are unconditional and irrevocable. Once contributions are made to a DAF account, members have advisory privileges and are able to recommend how an account is invested and distributed. However, Daffy retains ultimate control.

Third-Party Contributors

In certain cases, individuals or entities other than the member may make a contribution into a Daffy account. 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 Daffy account when received.

DAF Transfers
Members with existing donor-advised funds with other sponsoring organizations may request that their DAF be transferred to their Daffy account. This is generally done by submitting a donation recommendation to Daffy Charitable Fund (Tax ID 86‑3177440). Daffy is not responsible for processing delays, errors, or rejections caused by a member’s sponsoring organization.

Tax Considerations

This information is meant to be educational and should not be construed as tax advice. As always, we recommend consulting a tax professional.

Income Tax Deduction

Members may generally take a tax deduction after making a contribution to a DAF account. Daffy Charitable Fund is exempt under Section 501(c)(3) of the Internal Revenue Code and has an EIN of 86-3177440. 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 into a DAF account; donors may not take an additional deduction when a donation is recommended to a charity.

For publicly traded securities owned for more than a year, the IRS defines the Fair Market Value (FMV) 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 lost 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.

Capital Gains Tax and Tax Free Growth

While all unrealized and realized gains are attributed to each individual Daffy account, the member is not responsible for any taxes associated with the investments within the account. This includes the initial liquidation of all contributed non-cash assets. Daffy, as a charitable entity, is generally tax-exempt.

Additional Reporting Requirements

Stock
Members that have contributed non-cash assets valuing more than $500 and are claiming an incoming 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.

Crypto
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 asset is valued over $5,000. Please send all forms that require a signature to support@daffy.org. For members who have contributed more than $5,000 in cryptocurrency, the information provided by Daffy does not fulfill a member’s potential requirement to obtain a qualified appraisal per IRS Form 8283. Additionally, Daffy is required to complete IRS Form 8282, listing the member’s name, contact information, and contributed assets. Daffy will share this form with the member by email within 125 days of the asset being contributed.

Investment Options

Investment Portfolios

Daffy members can select from a variety of investment portfolios to invest their DAF account assets. These investment portfolios offer members the potential for their gifts to grow tax-free, potentially providing additional funding to the charities of their choice. These investment portfolios have been selected to offer a range of investment characteristics: some portfolios are more conservative, while others are more aggressive. These portfolios also vary based on the composition of investments. Currently, Daffy offers portfolios invested in public market exchange-traded funds (“ETFs”), as well as selected crypto assets, such as Bitcoin and Ethereum. For a complete list of portfolios offered by Daffy currently, please refer to the website: https://www.daffy.org/portfolios.

All investment portfolios are subject to change by Daffy at any time. Daffy will retain full authority and control over the DAF accounts. Daffy does not and will not provide members with investment advice. Investments carry significant risk of volatility, and Daffy does not guarantee that the invested DAF accounts will earn any positive rate of return. Daffy will not be liable for any diminution in the value to DAF accounts, such as losses that may occur from investing in a fund.

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 recommend a donation at any time after a DAF account has been created and funded. While Daffy does its best to fulfill all member’s recommendations that meet our guidelines, member recommendations are only advisory; Daffy retains ultimate control over the DAF accounts 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 of a recommendation within 30 days of the recommendation being submitted. Daffy then permits the member to make a recommendation to an alternative charity or charities or cancel the request. Members may not impose restrictions or conditions on the assets in DAF accounts. Donations that have already been approved and issued cannot be canceled by the member.

Donation Number Limits & Amounts
Members may recommend an unlimited number of donations in any given month. The minimum donation recommendation is $20. If a member recommends a donation that exceeds the DAF account balance, Daffy offers the member the ability to schedule a contribution to fully fund the donation recommendation. Daffy only approves a donation recommendation if sufficient funds are available in the member’s DAF account.

Recognition and Anonymity
When recommending a donation, a Daffy member may request to be identified to the recipient charity by name, contact information, and DAF account name. Under IRS guidance, naming rights are an incidental benefit, so members are permitted to receive naming rights upon recommending a donation. Alternatively, a Daffy member may remain anonymous and 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 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 above.

Recurring Donations
Members may set up a donation to be sent on a recurring basis. Daffy will verify the donation at the time of each submission and each payment. Recurring donations are subject to the same Donation Use Restrictions listed below. Daffy may suspend a recurring donation if the account does not have enough balance to cover a recurrence 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 fund their account and reactivate their donation. Members may cancel a recurring donation at any time; however, if a recurrence is already in process it may not be cancelable.

Charitable Recipients

Permissible Recipients
Members may recommend a donation to any charity in the Daffy Charitable Fund mobile application, or through the Daffy Charitable Fund website. 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 grant on a case-by-case basis.

Members that wish to donate to organizations that are currently not listed may send them to support@daffy.org. Please include the mailing address, tax ID, 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 grantees 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, or 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. Daffy may also use other watchlists to revoke an organization’s eligibility.

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 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. Member 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 an account 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 DAF 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 processes donations to charitable recipients on a daily basis (business days only). For each approved donation, funds from the member’s portfolio are liquidated and then Daffy distributes the funds to selected charities by check or, if possible, electronic transfer. The member’s selected acknowledgment and private note are transmitted with the payment. If other Daffy members have recommended donations to the same charities, Daffy may combine the individual donations and make one payment to the eligible charity. 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 listed above, in any way.

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 on the Donations page of daffy.org or in the app. 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.

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.

Terms and Conditions of Member Agreement

This Agreement outlines the policies, procedures, rules, and restrictions associated with opening and maintaining Daffy donor-advised fund 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. Subject to IRS rules and guidelines governing DAF operations, 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. Members are responsible for periodically reviewing this Agreement to be informed of updates.

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 300 3rd Street, Suite 7, Los Altos, CA 94022.

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 Adam Nash at 300 3rd Street, Suite 7, Los Altos, CA 94022 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, http://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 WWW.800HELPFLORIDA.COM.

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 INTERNET AT http://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.