Donor-Advised Funds (DAFs) offer a unique and beneficial way to manage charitable giving, and Daffy stands out as a top choice for a DAF provider. Daffy's mission is to help people be more generous, more often, and they've built a not-for-profit community around a modern platform for charitable giving featuring a best-in-class DAF.
When you contribute cash, stocks, or crypto to a DAF, like your fund in Daffy, you'll be able to take an immediate tax deduction for those contributions. These contributions are then invested in a portfolio of your choice, and at any time, you can donate to over 1.5 million charities.
Daffy offers several key benefits. Firstly, it allows you to save, invest, and give. You can put money aside any time, and watch it grow in an investment portfolio of your choice. When you're ready to give, you know how much you can afford, and all of your donation history is available in one convenient place.
Secondly, Daffy helps you save money on taxes. Every contribution to your DAF is considered a tax-deductible charitable donation in the year that you make it. You can 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.
Lastly, Daffy allows you to save more with stock and crypto donations. Generally, when you sell assets like stock or crypto in your personal accounts, you will owe federal, state, and local taxes on any gains. But when you donate these assets to your DAF, you can avoid these taxes and give more to charity.
In comparison to traditional DAF providers, Daffy stands out in terms of fees, types of contributions, investment options, and giving features. Traditional DAF providers often charge based on a percentage of assets on accounts, leading to a conflict of interest. Daffy, on the other hand, is designed to be a community, bound together by a common commitment to regularly put money aside for those less fortunate.
In conclusion, Daffy offers a modern, user-friendly, and tax-efficient way to manage your charitable giving. Whether you're new to DAFs or looking to switch providers, Daffy is a great option to consider.
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.