Daffy

How does a donor-advised fund like Daffy assist in tax deductions?

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A donor-advised fund like Daffy can be a powerful tool for maximizing tax deductions. By using Daffy, you can contribute two or more years’ worth of donations into your account during one tax year and immediately receive the tax deduction for that amount. This strategy, known as bunching, allows you to exceed the standard deduction threshold and claim more substantial tax deductions. Once you've made your contributions, Daffy gives you the flexibility to distribute funds to the charities of your choice whenever you're inspired to give. You can space out your contributions over a two-year period, for instance, then go back to taking the standard deduction in the other years. Moreover, Daffy encourages you to make charitable giving a part of your year-long financial plan. By setting a goal for how much you want to give this year and automating your contributions, you can be more intentional with your giving and optimize your tax strategy. Daffy also simplifies the process of donating stock or crypto and keeps all your tax receipts organized in one place. This way, you can easily plan all of your charitable donations and have all your tax-deductible contributions ready for tax season. Join the Daffy community today and start saving more on your taxes while supporting the causes you care about. Please note that this information is for educational purposes only and should not be considered tax or investment advice. To assess your specific situation, please consult with a tax and/or investment professional. Daffy Charitable Fund is recognized as 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. Get started with Daffy, the Donor Advised Fund for You™, 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.

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