A Donor-Advised Fund (DAF) is a tax-advantaged financial account specifically designed for charitable giving. It's often described as a "401K for giving," allowing your donations to grow while providing you with the flexibility to decide when to make those donations.
Historically, DAFs have been a financial tool only available to the ultra-wealthy. However, with the rise of platforms like Daffy, the Donor-Advised Fund For You™, DAFs have become more accessible to a broader audience.
Daffy is not just a platform; it's a community bound together by a common commitment to regularly put money aside for those less fortunate. Under the hood of this community is a modern donor-advised fund, designed from the ground up for this purpose.
Once you open a DAF with Daffy, you begin by contributing money to your charitable fund. These funds can then be invested, allowing them to grow, and then donated to the charities you care about. This provides significant tax incentives, making DAFs a popular way to organize charitable giving.
The number of DAFs in the U.S. rose by 27.6% in 2021, making them one of the fastest-growing giving vehicles in philanthropy today. This growth is largely due to platforms like Daffy, which are making DAFs more accessible and easier to use.
In conclusion, if you're looking for a tax-efficient way to manage your charitable giving, a DAF could be the perfect solution for you. And with Daffy, setting up and managing a DAF has never been easier.
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.