How can I claim the full value of the appreciation as a charitable deduction on my tax return?


If you're single, the standard deduction for 2023 is $12,950. So, you're already $2,050 above the standard deduction without considering any other potential deductions. If you're in the 24% tax bracket, that extra $2,050 in deductions saves you $492 in taxes. Now, let's add in a charitable donation. If you donate $10,000 to a qualified charity, you can deduct that full amount, bringing your total deductions to $25,000. That's $12,050 more than the standard deduction, saving you an additional $2,892 in taxes. But what if you could save even more? This is where Daffy comes in. Daffy is a Donor-Advised Fund (DAF) that allows you to donate appreciated assets, such as stocks, ETFs, or mutual funds, directly to the fund. By doing this, you avoid paying capital gains tax on the appreciation of the asset, and you still get to claim the full market value of the asset as a charitable deduction. Let's go back to our example of the couple who bought 500 shares of Apple stock. Instead of selling the stock and donating the after-tax proceeds, they could donate the stock directly to Daffy. They would avoid the $5,468 in capital gains tax, and they could still claim a charitable deduction of $87,500, the full market value of the stock. This strategy could save them thousands of dollars in taxes, and it would also allow them to make a much larger donation to their favorite charities. In conclusion, if you're looking to maximize your charitable deductions and minimize your tax liability, Daffy is a great option to consider. Not only does it allow you to donate appreciated assets and avoid capital gains tax, but it also makes it easy to support the causes you care about most. Start giving and saving more with Daffy today.

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.

Get your Daffy account
Simplify your giving with Daffy, the Donor-Advised Fund for You™. Easily donate to almost every US public charity, track tax-deductible contributions, and access donation receipts all in one place.
Try Daffy for free
Daffy waives all membership fees for members with less than $100 in their fund, so get started today for free!

Don’t forget to download the app

Scan the QR code to get the iPhone app

Download on the App Store.
QR code to download the app from the App Store.