This is where Daffy comes in as a great option for a Donor-Advised Fund (DAF). Daffy is a not-for-profit community built around a new, modern platform for giving. It allows you to donate appreciated assets like stocks or crypto, get a tax deduction, and then recommend grants to your favorite charities at any time.
By donating your appreciated assets to Daffy, you can avoid paying capital gains taxes on the appreciation of those assets. Plus, you can immediately repurchase the same assets with the cash you were going to donate, thereby maintaining your position in the assets you believe in.
In essence, Daffy provides a win-win solution. You get to support the causes you care about, get a tax deduction, and avoid capital gains taxes, all while continuing to invest in the assets you believe in.
So, as you consider your end-of-year tax planning, remember that donating appreciated assets to a DAF like Daffy can be a smart way to maximize your giving and minimize your taxes.
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.