Donor-advised funds (DAFs) like Daffy offer a flexible and efficient way to manage charitable giving. However, it's important to understand that not all donation recommendations may be approved. For instance, Daffy members cannot recommend donations to satisfy pre-existing pledges or obligations for their private benefit. Examples of such recommendations that may not be approved include tuition payments, tickets to a gala, or membership benefits to other organizations.
The reason behind this is simple: Daffy, like all DAFs, is committed to ensuring that the donations made through its platform do not provide more than an incidental benefit to the donor or their family. This is in line with the IRS rules, which permit donors to receive items of “insubstantial value” such as a keychain or calendar, or recognition for a donation.
That said, Daffy offers a wide range of options for charitable giving. You can make a donation recommendation to a church, synagogue, mosque, or other religious organizations, as long as they meet the criteria outlined in Daffy's Member Agreement. Even if a religious institution doesn't show up in Daffy's database, it may still be eligible for a donation recommendation.
Joining Daffy allows you to set up recurring contributions and donations from your own DAF. You can donate cash, stock, or crypto, and earmark the money for your favorite causes and charitable contributions. So, if you're ready to make giving a habit and be part of a community that values generosity, Daffy is the DAF 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.