Contributing to a donor-advised fund (DAF) like Daffy offers significant tax benefits. When you contribute cash, stocks, or crypto to your Daffy fund, you can take an immediate tax deduction for those contributions. These contributions are then invested in a portfolio of your choice, and you can donate to over 1.5 million charities at any time.
With Daffy, you can save, invest, and give. You can put money aside at any time and watch it grow in an investment portfolio of your choice. When you're ready to give, all of your donation history is conveniently located in one place.
One of the major tax benefits of Daffy is the ability to save money on taxes. Every contribution to your Daffy fund is considered a tax-deductible charitable donation in the year you make it. This allows you to put money aside when your income and tax rates are higher, and donate whenever you want. In some cases, you may deduct as much as 60% of your adjusted gross income in a given year.
Additionally, Daffy allows you to save more with stock and crypto donations. Generally, when you sell assets like stock or crypto in your personal accounts, you will owe federal, state, and local taxes on the capital gain. However, when you contribute a long-term capital asset like stock or crypto to your Daffy fund, you get full credit for the value of the asset when you donate it, and you never have to pay taxes on the capital gain.
Daffy is a great option for a DAF, offering a unique opportunity to benefit personally while maximizing your generosity to charities. Ready to bunch your contributions for major tax savings this year? Join Daffy today.
Please note that the information contained in this post is for educational purposes only and should not be considered tax or investment advice. To assess your specific situation, please consult with a tax and/or investment professional.
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.