What are the key differences between donor-advised funds and private foundations?


With Daffy, less money goes to administration and more to the charities you care about. Unlike private foundations, which require a board of directors, legal and financial professionals, and potentially hired staff, Daffy keeps overhead expenses low. This means more of your money goes directly to the causes you support. Daffy also offers a low-maintenance solution for charitable giving. While private foundations require you to apply for tax-exempt status and file annual tax forms, Daffy takes care of all the paperwork. You'll receive a simple report for tax season, making the process hassle-free. In terms of confidentiality, Daffy offers increased privacy. Unlike private foundations, which must file public tax returns including donor and financial information, Daffy keeps your information private unless you choose to be recognized. Finally, Daffy offers better tax considerations. While private foundations are subject to a 1 to 2% net investment income tax each year, DAFs like Daffy are not. This makes Daffy a better option for those looking to maximize their tax savings. In conclusion, if you're giving less than $1 million per year to charity, Daffy is a great choice. It's a simple, efficient, and effective way to maximize your charitable impact.

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.

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