Robinhood customers can now easily make tax-advantaged crypto donations through Daffy's modern donor-advised fund.
LOS ALTOS, Calif.— November 13, 2024, Daffy.org, the modern platform for charitable giving, announces an integration with Robinhood. This innovative collaboration empowers Robinhood customers to effortlessly donate their crypto assets to nearly any U.S. charity through Daffy’s modern donor-advised fund (DAF).
Using Robinhood Connect, Robinhood customers can fund their Daffy accounts to make charitable donations with existing crypto in their Robinhood account, or by purchasing crypto with debit card, bank transfers, or their Robinhood balance.
The integration between Daffy and Robinhood marks a significant step forward for both the fintech and charitable giving sectors. Despite major advancements in personal finance and investing over the past decade, few new platforms have focused on making giving back as seamless as saving and investing. In 2023, individual charitable donations decreased by 2.1%, even as the crypto market surpassed $2 trillion.
With Robinhood’s millions of U.S. customers, this collaboration has the potential to unlock hundreds of millions of dollars for charity by enabling tax-efficient crypto donations. Built using Robinhood Connect and Daffy’s APIs, this integration is a testament to the power of modern financial technology.
“The U.S. charitable giving market is enormous, with an estimated 50-60 million households donating annually. But the tax advantages of donating appreciated assets like crypto are still underutilized,” said Adam Nash, Co-founder and CEO of Daffy. “Of the over 1.7 million U.S. charities, only an incredibly small fraction are equipped to accept crypto directly. By enabling this new capability, we’re unlocking significant potential for donors and nonprofits alike.”
“At Robinhood, we’re focused on making crypto more accessible and useful for everyone,” said Johann Kerbrat, GM of Robinhood Crypto. “Our integration with Daffy through Robinhood Connect gives our customers an easy way to turn their crypto into charitable donations. We believe in empowering our users not just to invest, but to give back easily, and donating crypto should feel as effortless as making a trade.”
Benefits for Robinhood Customers:
Donate Crypto with Ease: Robinhood customers can now seamlessly donate crypto held in their accounts to Daffy using Robinhood Connect on the Daffy platform. Once donated, the crypto is liquidated, and the funds can be granted to over 1.7 million U.S. charities, schools, and religious institutions, many of which do not accept crypto directly.
Maximize Tax Benefits: By donating appreciated crypto, Robinhood customers can avoid paying capital gains taxes while receiving a full deduction for the market value of the crypto at the time of donation. For example, donating $5,000 worth of Bitcoin (BTC) instead of cash could save an additional $1,200 on a tax bill.
Access Daffy’s Modern, Low-Cost Donor-Advised Fund: Customers can manage all their charitable giving from one place, with a platform that simplifies donation tracking, provides organized records for tax purposes, and supports automated recurring donations.
Tax-Free Growth of Charitable Contributions: With Daffy, donated funds can be invested tax-free, allowing for potential growth over time before being granted to charity. This makes it easy to donate not just crypto but also appreciated assets like stocks and mutual funds.
To learn more about this integration and how it works, visit daffy.org/resources/robinhood.
In addition, Daffy invites crypto donors to join its “Gains for Good” Charity Challenge, a campaign designed to help people maximize their charitable impact by donating appreciated stock, ETFs, mutual funds, and crypto assets while avoiding capital gains taxes. The challenge aims to raise $10 million for charitable causes and make giving easier, especially in a year of strong market performance. Every unique stock or crypto donation qualifies participants for a chance to win daily $100 charity sweepstakes, with an additional opportunity to win a grand prize of $5,000 for charity. Terms and conditions apply. For more details, visit daffy.org/gainsforgood.
About Daffy
Daffy, named one of Fast Company’s “Most Innovative Companies of 2024,” is the Donor-Advised Fund for You™—a modern, easy-to-use platform for charitable giving. With no minimum to get started and industry-low fees, anyone can contribute using cash, stock, or over 200 types of crypto. Daffy makes it easy to set aside money, watch it grow tax-free, and donate to over 1.7 million charities. It’s like a 401(k) for giving. With fundraising capabilities, features for families to give together, and a real-time feed of members’ philanthropic activity, Daffy taps into the inherently social nature of giving, helping people discover, inspire, and support the causes they care about most. Since launching in September 2021, the Daffy community has grown to thousands with members’ account sizes ranging from $10 to over $10M. To give with Daffy, visit daffy.org or search “Daffy” in the App Store.