Donor-Advised Funds (DAFs) are tax-deductible financial accounts specifically designed for charitable giving. They have been described in various ways such as a "401K for giving" or a vehicle to save more on taxes while donating to charities you care about. The primary purpose of a DAF is to allow your donations to grow while giving you the flexibility to decide when to make those donations.
Historically, DAFs have been a financial tool only available to the ultra-wealthy. However, with the rise of organizations like Daffy, the Donor-Advised Fund For You™, DAFs have become more accessible. Daffy was designed to be a community bound together by a common commitment to regularly put money aside for those less fortunate. Under the hood of this community is a modern donor-advised fund, designed from the ground up for this purpose.
Once you open a donor-advised fund with Daffy, you begin by contributing money to your charitable fund. These funds can then be invested and grow, and when you're ready, you can make donations to your chosen charities. This approach provides significant tax incentives, making DAFs a popular way to organize charitable giving.
The number of DAFs in the U.S. rose by 27.6% in 2021, making them one of the fastest-growing giving vehicles in philanthropy today. This growth is a testament to the increasing accessibility and popularity of DAFs, and organizations like Daffy are at the forefront of this trend. So, if you're looking for a tax-advantaged way to manage your charitable giving, Daffy could be the perfect option for you.
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.