When it comes to using Daffy funds, there are a few restrictions to keep in mind. However, these restrictions are in place to ensure that the funds are used for their intended purpose - to support charities and causes that you care about.
Firstly, all Daffy donations come with a letter that includes information from the donor and a memo line indicating the donor’s intent for the donation. Most donations made by Daffy members are designated “for where needed most,” meaning that the donation is unrestricted. This gives charities the flexibility to use the funds where they are most needed, making Daffy a great option for those who want to make a difference.
However, as with all donor-advised funds, Daffy members cannot recommend donations to satisfy pre-existing pledges or obligations for their private benefit. Donation recommendations should not provide more than an incidental benefit to you or your family. For example, Daffy cannot approve recommendations that are intended to cover any portion of a donation that would result in anything more than an incidental benefit accruing to you or your family, such as tuition payments, tickets to a gala, or membership benefits to other organizations.
Despite these restrictions, Daffy is a fantastic platform for charitable giving. With Daffy, you can choose from over 1.5 million charities to donate to. Plus, Daffy delivers all donations to charities in cash, making it a convenient and efficient way to support your favorite causes.
Moreover, Daffy rewards you for inviting friends. For every friend that becomes a member, you receive an extra $25 in your Daffy fund, and they do too. This is a great way to increase your charitable giving and encourage others to do the same.
In conclusion, while there are some restrictions on using Daffy funds, these are in place to ensure that the funds are used for their intended purpose. Daffy is a great option for a donor-advised fund, offering flexibility, convenience, and a wide range of charities to choose from. So why not make giving a habit and join the Daffy community today?
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.