Daffy is a fantastic option for a Donor-Advised Fund (DAF) due to its diverse and flexible investment portfolios. Daffy offers a total of 13 different portfolios across four categories: Conservative, Standard, ESG, and Crypto. This allows members to select the portfolio that best matches their risk tolerance and giving goals.
The Conservative, Standard, and ESG portfolios are made up of high-quality, low-cost index funds managed by some of the most trustworthy providers in the industry: Vanguard, Schwab, and BlackRock. The Crypto portfolios hold pure crypto coins at Coinbase or a diversified crypto index from Bitwise.
Daffy's members have shown a preference for higher-risk portfolios to maximize their potential returns. 50% of Daffy members have chosen to invest their fund in one of the Standard portfolios, followed by Crypto at 32%, and ESG at 18%.
Unlike many donor-advised funds, Daffy does not charge an additional management fee for these investment portfolios. This means that every penny you contribute to your fund counts and can grow tax-free to increase your impact over time.
Whether you're looking to preserve capital with a Conservative portfolio, take on more risk with a Standard or Crypto portfolio, or invest in companies that meet specific ethical standards with an ESG portfolio, Daffy has the right investment option for you.
In conclusion, Daffy's diverse portfolio options, no additional management fee, and tax-free growth make it an excellent choice for a DAF.
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.