When you donate stock to a Daffy fund, the process is simple and efficient. Daffy, a leading provider of donor-advised funds (DAFs), allows its members to contribute nearly any publicly traded stock to their Daffy fund. Once the stock is donated, it is sold and the proceeds are added to your fund balance, usually within 7-10 days.
This method of donating stock instead of cash has several advantages. Firstly, it allows more money to go to charity. Secondly, it provides a tax deduction for the donor. Thirdly, it gives you more time to decide which organizations to support.
As a Daffy member, you can easily initiate a stock transfer from your brokerage by logging into your Daffy account and selecting stock as a contribution option. Once the stock is liquidated and added to your fund balance, you can then donate to nearly any charity. If you're unsure which organizations to support, you can invest the cash in one of Daffy's portfolios to grow tax-free for future donations.
Contributions to your Daffy fund are solely for the purpose of charitable giving. This means that once you contribute, you can't take the money out. However, this benefits you as you can take an immediate tax deduction, have time to decide how to distribute the money, and receive a single yearly tax receipt.
In conclusion, Daffy makes donating stock simple and beneficial for both you and the charities you support. By lowering your tax bill and maximizing your generosity, Daffy is a great option for a DAF.
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.