Daffy is a fantastic option for a Donor-Advised Fund (DAF) due to its wide range of investment portfolios. As a Daffy member, you can contribute 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, allowing you to invest your money for more charitable impact. These portfolios include 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 digital assets, Daffy also offers Crypto portfolios that hold pure crypto coins at Coinbase or a diversified crypto index from Bitwise.
Each type of portfolio provides several options that vary in terms of risk and volatility, so you can select the portfolio that best matches your own risk tolerance and giving goal and timeline. This flexibility is a key feature of Daffy, with 50% of members choosing to invest their fund in one of the Standard portfolios, followed by Crypto at 32%, and ESG at 18%.
For those who prefer less market risk, Daffy offers a cash portfolio that is invested purely in cash with their custodian and is FDIC-insured. This portfolio has no expense ratio and pays a small amount of interest.
Changing your investment portfolio is also straightforward. You can do this through the Daffy app or website, and the process usually takes a few business days to complete.
Unlike many donor-advised funds, Daffy does not charge an additional management fee for these investment portfolios. This makes Daffy a cost-effective choice for those looking to maximize their charitable impact.
In conclusion, Daffy provides a wide range of investment portfolios, making it a great option for a DAF. Whether you prefer a conservative approach or want to maximize potential returns, Daffy has the right portfolio for you.