Maximize Your Charitable Tax Deductions
The 2026 charitable deduction rules make a donor-advised fund (DAF) a key tool for tax-efficient giving.
2026 Charitable Tax Deduction Rules
The size of your deduction depends on how you file, what you give, and how much you earn. Qualifying gifts include donations to churches, synagogues, schools, and any organizations registered as 501(c)(3) nonprofits.
Cash donation: Deduct up to 60% of adjusted gross income (AGI)
Appreciated stock or crypto donations: Deduct up to 30% of AGI
Deduct only the portion over 0.5% of AGI
35% Cap: Top bracket (37%) limited to 35% deduction rate
Takeaway
Under the One Big Beautiful Bill Act (OBBBA), itemizers now face a 0.5% AGI floor. Bunching multiple years of giving into a donor-advised fund and contributing appreciated assets can help maximize your deductions.
Learn more about OBBBA changesLearn more about OBBBA changesHow Do Donor-Advised Funds Help with Tax Deductions?
A DAF lets you contribute multiple years of planned giving in one year, take the deduction upfront, and donate to charities over time. This can help you exceed the new 0.5% AGI deduction floor.
Example
If you typically donate $6,000 per year, contributing $30,000 in one year through a DAF can significantly increase your deduction, unlocking $3,200 more in tax savings compared to donating annually.
Annual Donations
| Year | Gift | 2026 Est. Tax Savings |
|---|---|---|
| Year 1 | $6,000 | $1,120 |
| Year 2 | $6,000 | $1,120 |
| Year 3 | $6,000 | $1,120 |
| Year 4 | $6,000 | $1,120 |
| Year 5 | $6,000 | $1,120 |
| Total | $30,000 | $5,600 |
Bunched Giving
| Year | Gift | 2026 Est. Tax Savings |
|---|---|---|
| Year 1 | $30,000 | $8,800 |
| Year 2 | - | - |
| Year 3 | - | - |
| Year 4 | - | - |
| Year 5 | - | - |
| Total | $30,000 | $8,800 |
Common Ways Donors Use DAFs to Reduce Taxes
A donor-advised fund turns charitable giving into both a meaningful act and a tax-planning strategy.
Time your deduction
Bunch donations when your marginal tax rate is highest, and the tax value of the deduction is greatest.
Donate appreciated assets
Contribute appreciated stock or crypto, likely skip capital gains tax, and deduct the fair market value.
Give without deadlines
Lock in your deduction in the year that makes sense for your taxes, then donate to charities over time.
Why Daffy is the Donor-Advised Fund For You™
Not all DAFs are created equal. Traditional DAFs often come with high minimums, percentage-based fees, and clunky interfaces. Daffy is different.
No minimums to get started. Open an account with any amount, no $25,000 minimum.
Simple, flat pricing. Start at $3/mo, not a percentage of your balance.
Modern, mobile-first experience. Manage your giving from your phone.
Give to 1.7M+ charities. Schools, churches, nonprofits - if it's a 501(c)(3), it's likely on Daffy.
Add your whole family. Up to 24 members, plus your financial advisor.
- See membership and pricing
Join thousands of generous members
Daffy blows away the competition in the DAF space on basically every metric. Daffy spices up the act of giving, all while helping you do it efficiently.
Joel Larsgaard,
Member Since 2022
I added funds to Daffy in 2022, when the S&P was at a low. Even after giving $22,000, I still have $17,000 left—my money is growing even while I'm giving. That's why a DAF like Daffy is so powerful.
Pranav Garg,
Member Since 2022
It's just so approachable and user-friendly. Daffy is a DAF for anyone, and I truly mean gifts of any amount. Try setting one up and see the difference that comes from having all your giving in one place.
Trish Davis,
Member Since 2024
I can't recommend Daffy enough. Gifted some shares yesterday, transactions went through in one business day, and I made our annual donations tonight. All in a 36 hour period - so efficient!
Jofi Joseph,
Member Since 2025
I wanted to open a DAF because I knew it would increase my charitable giving overall. It's been important to think about those that are less fortunate than I am and realize that I can give a percentage of my income to different causes.
Amanda A.,
Member Since 2023
Once I've put the money into my fund, I don't have to decide whether or not I should give. I've already decided that there is money that I want to give away freely. The more things I can automate, the more I can stay committed to my giving goal.
Geoff Zoeckler,
Member Since 2023
Daffy focuses all of their time on making it easier to give. The amount of hours and development that's gone into it, you can tell it's a group that's not going to settle. They are constantly innovating.
Jared Carr,
Member Since 2021
