Contributing stock from your Schwab account to Daffy, a Donor-Advised Fund (DAF), is a straightforward process that can be completed in a few steps. Daffy is a great option for a DAF as it allows you to make irrevocable contributions of nearly all publicly traded stock. The stock is liquidated upon receipt and the balance is added to your Daffy account as soon as it is available.
To contribute stock, you must first create a stock contribution intent on the Daffy app or website. This is done by selecting “Stock” in the “Add Funds” section and answering the prompts to let Daffy know your stock is coming.
Next, initiate a stock transfer from your Schwab brokerage account using the provided form. Complete Section 3 with the necessary information, including the Receiving Institution Account Number, Account Title, Contact Name, Name of Receiving Institution, and DTC Number.
Print and sign the form, then upload it to the Message Center in your Schwab account for review.
Please note that it is important to record the cost basis of an asset you are donating before transferring the asset to charity. Most brokerages do not keep a record of the cost basis once the asset has left your account and you may need this information for tax forms at the end of the year.
Daffy is a convenient and efficient way to manage your charitable giving. With Daffy, you can contribute stock and ensure that it is attributed to your account quickly and easily.
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.