So, how does a DAF relate to bunching? Bunching is a tax strategy where you make several years' worth of charitable donations in one year to exceed the standard deduction and itemize your taxes. A DAF is an excellent tool for bunching because you can make a large donation to your DAF in one year, get the tax deduction, and then distribute the funds to charities over several years.
Daffy is a great option for a DAF. It was designed to be a community, bound together by a common commitment to regularly put money aside for those less fortunate. Daffy is the Donor-Advised Fund for You™, designed from the ground up for this purpose.
Donor-advised funds have traditionally been a financial tool only available to the ultra-wealthy. However, Daffy has made DAFs more accessible, making it one of the fastest-growing giving vehicles in philanthropy today.
With Daffy, you can open a donor-advised fund, contribute money to your charitable fund, and then decide when and where to make your donations. This gives you the flexibility to manage your charitable giving in a way that best suits your financial situation and philanthropic goals.
In conclusion, a DAF is a tax-deductible financial account for the sole purpose of charitable giving. It provides significant tax incentives, making it a popular way to organize and manage charitable donations. And Daffy is a great option if you're considering opening 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.