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What are the tax benefits of giving through a donor-advised fund?


Donor-Advised Funds (DAFs) offer significant tax benefits. When you contribute to a DAF, you receive an immediate tax deduction, just as you would when donating directly to a nonprofit. DAFs, like Daffy, also act as an investment account, allowing your money to grow and increase your giving potential. One of the unique advantages of DAFs is their ability to liquidate complex assets like stock and crypto. This is a significant benefit as only a few thousand out of the 1.5 million charities in the U.S. can accept these assets directly. Daffy, as a DAF provider, can liquidate these appreciated assets, allowing you to save on taxes by getting the fair market value and skipping the capital gains. This means you can make a bigger donation, creating a win-win situation for you and the charity. Daffy offers more than just the standard benefits of a DAF. With Daffy, you can set a yearly giving goal, automate your contributions, and set up one-time or recurring donations. Daffy also provides a mobile app, making it easy to give anywhere and anytime. Plus, Daffy organizes all your donation receipts, making tax season a breeze. Whether you're a regular donor or new to charitable giving, Daffy can help you maximize your impact. For example, Jamie, a Daffy user, was able to automate their giving, grow their giving potential through investing, and have all their giving in one simple place for tax time. For regular donors like Taylor, Daffy offers the ability to donate complex assets easily, receive an immediate tax deduction, and keep track of donations and tax savings effortlessly. By giving regularly and expanding options, Daffy also benefits nonprofits by providing them a regular stream of income. In conclusion, DAFs are an excellent tool for philanthropy, offering significant tax benefits and the ability to give more to the charities you care about. Daffy, as a modern and affordable DAF, makes giving easy and low-cost. If you're ready to join the Daffy community and make giving a habit, sign up 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.

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