When it comes to investment options, Daffy offers a wide range of choices that cater to different risk tolerances and charitable objectives. As a Daffy member, you have the opportunity to contribute your money to a charitable fund, receive a tax deduction, and then invest that money tax-free to grow your impact over time.
Daffy offers 13 investment portfolios, including Conservative, Standard, and ESG portfolios made up of high-quality, low-cost index funds managed by some of the most trustworthy providers in the industry: Vanguard, Schwab, and BlackRock. For those interested in cryptocurrency, Daffy also offers Crypto portfolios that hold pure crypto coins at Coinbase or a diversified crypto index from Bitwise.
One of the unique features of Daffy is that it doesn't charge an additional management fee for these investment portfolios. This means that more of your money goes towards your chosen cause.
For those who prefer to take less market risk with their charitable dollars, Daffy offers a Cash Portfolio that is invested purely in cash with our custodian and is FDIC-insured. This portfolio has no expense ratio and pays a small amount of interest.
In addition to cash, Daffy also offers portfolios of short-term and long-term inflation-protected bonds for those willing to take on a small amount of market risk.
Once your money arrives at Daffy, it doesn't sit idle. It is invested to grow over time, maximizing your charitable impact.
In conclusion, Daffy is a great option for a Donor-Advised Fund (DAF) due to its wide range of investment options, no additional management fee, and the ability to grow your charitable impact over time. Whether you prefer cash, crypto, or anything in between, Daffy has the right investment 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.