Daffy is a fantastic option for a Donor-Advised Fund (DAF) for those who want to contribute to a charitable fund, receive a tax deduction, and then invest that money tax-free to grow their impact over time. One of the standout features of Daffy is the variety of investment options it offers to its members. From standard portfolios to crypto, Daffy has something for everyone.
However, we understand that not everyone is comfortable with market risk. For those members who prefer a more conservative approach, Daffy has recently introduced three new Conservative portfolios. These portfolios are designed to cater to different levels of risk tolerance while still allowing your charitable dollars to grow.
The first of these is the Daffy Cash Portfolio. This portfolio is designed for members who don’t want to take any market risk with their charitable dollars. It 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.
For members willing to take a small amount of market risk, Daffy now offers a portfolio of short-term inflation-protected securities from Vanguard. This fund has a duration of only 2.5 years, and an expense ratio of only 0.04%.
Finally, for those willing to take more market risk in exchange for higher returns, Daffy offers a portfolio of long-term inflation-protected bonds.
In addition to these conservative options, Daffy members can also choose from Standard, ESG, and Crypto portfolios. Each category features portfolios that range from conservative to aggressive, so that every member can pick the option that best suits their needs.
Daffy is a community built around the commitment to give, not the amount you give. We believe that by providing data and a variety of portfolio options, more people will feel comfortable making a choice that aligns with their charitable objectives and risk tolerance.
Once your money arrives at Daffy, it doesn't sit idle. Daffy invests your money so that while you are busy, your potential impact grows with your portfolio. Over time, this means that in many cases you will be able to make more donations over time.
In conclusion, Daffy offers a range of investment options to suit every risk tolerance, making it a great choice for a DAF. Whether you're a risk-taker or prefer a more conservative approach, Daffy has the right portfolio 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.