The benefits of using a Donor-Advised Fund (DAF) like Daffy are numerous and impactful. When you contribute cash, stocks, or crypto to your Daffy DAF, you can take an immediate tax deduction for those contributions. These contributions are then invested in a portfolio of your choice, allowing you to grow your fund over time. When you're ready, you can donate to over 1.5 million charities, making Daffy a flexible and efficient giving platform.
With Daffy, you can save, invest, and give at your convenience. You can put money aside at any time, watch it grow in an investment portfolio of your choice, and when you're ready to give, you know exactly how much you can afford. Plus, all of your donation history is available in one convenient place.
One of the key benefits of Daffy is the potential to save money on taxes. Every contribution to your Daffy DAF is considered a tax-deductible charitable donation in the year that you make it. This allows you to put money aside when your income and tax rates are higher, and donate whenever you want. In some cases, you may deduct as much as 60% of your adjusted gross income in a given year.
Daffy also allows you to save more with stock and crypto donations. When you sell assets like stock or crypto in your personal accounts, you will owe federal, state, and local taxes on the capital gain. However, when you contribute a long-term capital asset like stock or crypto to your Daffy DAF, you get full credit for the value of the asset when you donate it, and you never have to pay taxes on the capital gain.
In addition to these benefits, Daffy makes it easy for charities to accept complex assets like stock, ETFs, and crypto at no cost to them. This means more of your donation goes directly to the charity. Daffy also accepts donations of over 120 different cryptocurrencies through a partnership with Coinbase, making it a great option for the next generation of donors.
In conclusion, Daffy's DAF offers a multitude of benefits, including tax advantages, the ability to accept complex assets, and the potential for larger and more frequent donations. It's a great option for anyone looking to make their charitable giving more efficient and impactful.
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.