What You Need to Know
- Daffy Charitable uses a phone app to donate to more than 1.5 million charities and charges low monthly subscription rates.
- Fees range from $3 to $20 per month, and crypto assets are accepted as donations.
- Investments include low-cost index funds, and one account type also allows crypto investments.
A new donor-advised fund that accepts cash, stock and crypto assets as contributions, includes crypto as an investment option and has extremely low fees has entered a market dominated by Vanguard, Fidelity and Schwab.
Daffy Charitable, co-founded by Adam Nash, a former CEO at Wealthfront and former executive at Dropbox and LinkedIn, and Alejandro Crosa, who worked at Slack, Twitter and LinkedIn, says its mission is “to help people be more generous, more often,” using its phone app to donate to more than 1.5 million charities.
“Right now, there are millions of people struggling, and so many who want to help. Just like other companies have made it easy to shop and save,” Nash said in a statement. “We’ve built a platform from the ground up to make giving easier for everyone.”
Donors — Daffy calls them “members” — can make a minimum one-time contribution of $100 or take the “Daffy pledge” and commit to donating $10 a week or $25 a month.
The DAF has two basic sets of fees: $3 per month for donations made with a linked bank account, a credit or debit card through Apple Pay and for donations of stock and crypto up to $25,000. These donors are known as “contributors.”
The other set of fees is $20 per month for donors known as “benefactors,” who have the ability to make unlimited stock and crypto contributions. The minimum for one-time stock contributions is $1,000 and for crypto contributions is 0.001 Bitcoin.