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In terms of planning for the future, many of us are considering opening investment funds dedicated to retirement or saving for a child's education expenses in the future – but how often do we consider putting money aside to charity?
On Yahoo Finance's financial free approach podcast, Daffy's co-founder and CEO Adam Nash revealed how donor-advised money can help people save more money for charitable contributions-and receive additional tax reliefs along the way.
“It's a complete myth that only the rich give,” said Nash. “In fact, many studies actually show that the average person is more generous. It is about 60 million US households every year that donates to charity.”
Nash pointed out that people often do not give a charitable gift until they are asked, but that does not mean that individuals cannot include money for surrender Long -term budgeting goals.
Daffy is an acronym for “a fund hidden with you,” and the company aims to make these accounts easier for the average person to open and contribute to regularly. They allow individuals to not only set aside money for gifts but also help invest that money smartly.
“A fund advised by a charity is just a tax account for a charity,” Nash explained. “You can think of it as an IRA or 401 (K) for charity, right? It's designed for that. You can put aside money in this account, you get the charitable deduction immediately for your taxes, and then that money can be invested tax-free in any number of portfolios.”
He noted that Daffy allows consumers to put the money in their fund advised by donors whenever they are willing to contribute. “I honestly believe that everyone who gives a advice fund advised by donors regularly, Daffy aside,” said Nash.
For those who receive stock options as part of their compensation package or who have Crypto investments They would like to use them to contribute, using these assets as a gift can give investors a double tax victory. “
“If you have caught the investment more than a year, first of all, you have to deduct the full market value of that investment today – not what you invested in years ago, but what it's worth today,” Nash said. “And secondly, you will never pay the capital gains taxes on that earnings. So you get this double victory.”
Daffy allows consumers to contribute their crypto and stock options as a gift, which Nash said it can be an “incredibly clever financial movement” if your investment has major capital gains because of the tax benefits.