What is a Donor-Advised Fund?


Donor-advised funds (DAF) are financial accounts used for the purpose of giving money to charity. They allow individuals to put money aside tax-free for the organizations and causes they care most about. They are preferred by many including billionaires because they provide a better system for giving, as they allow people to schedule donations automatically to the organizations they support, and they are tax-efficient. People can contribute assets like stocks or ETFs to a DAF and not have to pay capital gains taxes on those assets, which is a true win-win. Unfortunately, not many charities can accept stock and crypto donations. But with Daffy, individuals can donate to any of the over one and a half million charities in the US whenever they want. Daffy is a provider of DAF that makes it accessible for anyone to open an account with lower minimums and fees.
A Donor-Advised Fund (DAF) is a tax-advantaged financial account designed specifically for charitable giving. It's often described as a "401K for giving," allowing your donations to grow over time while you decide when and where to distribute them. This makes DAFs a powerful tool for those who want to save more on taxes and donate to causes they care about. Historically, DAFs have been a financial tool only available to the ultra-wealthy. However, Daffy, the Donor-Advised Fund For You™, has changed this narrative. Daffy was designed to democratize access to DAFs, making them accessible to a broader community of givers. When you open a DAF with Daffy, you begin by contributing money to your charitable fund. This contribution is tax-deductible, and the funds can grow over time, tax-free. This allows you to maximize your charitable impact while also benefiting from significant tax advantages. But Daffy is more than just a modern, accessible DAF. It's a community bound together by a common commitment to regularly put money aside for those less fortunate. Daffy members are part of a movement that believes in the power of collective giving and the importance of making a difference in the world. So, if you're looking for a way to make your charitable giving more strategic, tax-efficient, and impactful, Daffy is a great option for a Donor-Advised Fund.

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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