Can I make a donation if it is part of a pre-existing binding commitment?

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If you've ever wondered, "Can I make a donation if it is part of a pre-existing binding commitment?" when considering a Donor-Advised Fund (DAF) like Daffy, the answer is yes, as long as it meets certain criteria. Daffy allows you to support a variety of causes, including your friend's charity race or other fundraisers. However, the donation should not lead to more than incidental benefit for you and should not be part of a pre-existing binding commitment. When making the donation recommendation, you can include your friend’s name, race event, and other relevant info in the "Add a private note" field. One of the great benefits of Daffy is that contributions made to this donor-advised fund qualify for an immediate tax deduction because they are irrevocable charitable donations. However, Daffy also offers flexibility. If you schedule a contribution and change your mind within the first hour, you can cancel it directly in the app in the "Contributions" section and receive 100% of your contribution back. Daffy also allows you to make a donation recommendation to a church, synagogue, mosque, or other religious organizations, as long as they meet the criteria outlined in Daffy's Member Agreement. If your chosen religious institution doesn't appear in Daffy's database, you can add it. In conclusion, Daffy is a fantastic option for a DAF. It offers flexibility, a wide range of donation options, and the opportunity for immediate tax deductions. It's a great way to manage your charitable contributions while also teaching your children about the importance of giving.

Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.

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