DAF 101: A Smart Way to Support Hoppy Clover Rabbit Rescue

Are you looking for a flexible, tax-efficient way to make a lasting impact on the lives of bunnies in need? You’re in luck! Today, we're diving into the world of Donor-Advised Funds (DAFs) – a powerful tool that makes charitable giving simpler and smarter, both for you and for organizations like Hoppy Clover Rabbit Rescue.

Think of a DAF as your own personal charitable savings account. It’s growing rapidly in popularity, and for good reason!

Why Should You Consider a DAF for Your Giving?

Donors choose DAFs for a combination of fantastic benefits:

1. Maximize Your Tax Benefits

   • Immediate Deduction: When you contribute to a DAF, you get an immediate federal income tax deduction in that year, even if you decide which charities to support later.

   • Avoid Capital Gains Tax: Donate appreciated assets like stocks or mutual funds directly to your DAF. You'll get a deduction for the full market value and generally avoid capital gains tax on the appreciation. More for bunnies, less for taxes!

   • Tax-Free Growth: The assets in your DAF can be invested and grow, completely tax-free. This means your generosity can multiply over time, ultimately benefiting more rabbits!

   • "Bunching" Deductions: DAFs are perfect for "bunching" several years' worth of charitable contributions into one year to itemize deductions, then spreading out grants to charities over time.

2. Unmatched Flexibility & Timing

   • Separate Giving from Granting: Make a large, tax-deductible contribution now, but take your time deciding which charities (like Hoppy Clover!) to support and when to send the grants.

   • Consistent Support: Use your DAF to provide steady support to Hoppy Clover, even in years when your personal income might fluctuate.

   • Complex Asset Donations: DAFs can often accept more complex assets like real estate or privately held stock, making it easy to donate assets that many individual charities can't directly process.

3. Simplify Your Giving

   • One Tax Receipt: Regardless of how many grants you recommend, you receive just one tax receipt from your DAF's sponsoring organization. They handle all the administrative work, record-keeping, and grant processing.

   • Centralized Giving: Manage all your charitable giving from a single online portal.

   • Easy to Set Up: Compared to private foundations, DAFs are remarkably easy and inexpensive to establish and require minimal ongoing effort from you.

4. Build a Charitable Legacy

   • You can name successor advisors, like your children or grandchildren, to continue recommending grants from your fund, passing on your love for animals and philanthropy to the next generation.

How Do You Start a DAF? (It's Easier Than You Think!)

Setting up a DAF is surprisingly simple, typically involving three main steps:

• Step 1: Choose Your DAF Sponsoring Organization & Open Your Account. This is often done online. You’ll choose an organization (like Fidelity Charitable, Schwab Charitable, DAFgiving360, CharityVest, Daffy, or a local community foundation). You'll name your fund and provide basic personal information.

• Step 2: Fund Your DAF & Claim Your Tax Deduction. Make your initial (irrevocable) contribution. This can be cash, appreciated stocks, or other assets. Once received, you’ll get your official tax receipt for the year of contribution.

• Step 3: Invest Your Funds & Recommend Grants. You can choose from various investment options to help your charitable dollars grow tax-free. Then, whenever you're ready, simply log into your DAF account and recommend a grant to Hoppy Clover Rabbit Rescue (or any other IRS-approved charity!). The DAF administrator handles all the paperwork and sends the check directly to us.

📅 Mark Your Calendar: DAF Day 2026 is October 8th!

DAF Day is a national celebration of Donor-Advised Funds, encouraging everyone who has a DAF to recommend a grant on that day!

• When: Thursday, October 8, 2026

• What to do: If you already have a DAF, please consider recommending a grant to Hoppy Clover Rabbit Rescue on October 8th. If you've been thinking about opening a DAF, use DAF Day as your inspiration to start the process!

Your DAF grant is a simple click that translates directly into essential supplies, medical care, and safe housing for the bunnies in our care.

Be on the lookout next year as we get closer to DAF Day 2026!

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Example: How a DAF Helps Hoppy Clover

Imagine you have appreciated stock that you’d like to use for charity. Instead of selling the stock, paying capital gains tax, and then donating the remainder, you donate the stock directly to your DAF. You avoid capital gains tax, get a deduction for the full fair market value, and then recommend a grant to Hoppy Clover Rabbit Rescue from your DAF. We receive the full amount, helping us provide critical care, food, and shelter for bunnies like this little one: