Betterment Expands Charitable Giving with Donor-Advised Funds from Daffy

Betterment customers can now donate to nearly any U.S. charity through Daffy integration

LOS ALTOS, Calif.--(BUSINESS WIRE)--Daffy.org, the modern platform for charitable giving, announces a new integration with Betterment, a leading digital-first wealth management platform, allowing Betterment customers to easily donate low-cost-basis securities to more than 1.5 million U.S. charities through Daffy’s donor-advised fund (DAF).

With this integration, Betterment's 900,000+ customers can donate appreciated shares from their Betterment taxable accounts to Daffy and easily manage their donations by setting up a Daffy account for a low monthly fee. Betterment’s platform automatically selects the lowest cost-basis investments held over a year, maximizing tax savings, and seamlessly transfers the shares to Daffy. This generates an immediate tax deduction for the customer, while Daffy invests those funds tax-free in the customer’s chosen portfolio. When inspired to give, customers can easily donate to nearly any U.S. charity, including schools, faith-based organizations, and international aid groups, using Daffy’s iOS app or web platform.

“While traditional financial advisors have partnered with donor-advised funds for years, it’s exciting to see Betterment become the first modern advisory platform to introduce this beneficial giving vehicle to their customers and advisors,” said Adam Nash, Co-founder and CEO of Daffy. “Daffy has already enabled thousands of members to set aside over $100 million for charity, and with Betterment, we’re excited to extend the benefits of giving through a DAF to many more."

“At Betterment, we’re committed to helping our customers grow their wealth and make a positive impact,” said Sarah Levy, CEO of Betterment. “By providing access to Daffy, we are making it easy for customers and financial advisors to donate appreciated securities to their favorite causes right from our platform. Plus, this new feature is perfectly timed for the year-end giving season and charitable tax deduction deadline.”

Key Benefits for Betterment Customers:

• Maximized tax savings. Betterment automatically selects which securities offer the largest tax advantages for donation.
• Flexible contributions. Customers can contribute taxable holdings through a DAF in lump sums or on a recurring basis.
• Tax-free growth. Charitable dollars are invested tax-free in a customer-selected portfolio, which can grow their giving potential.
• Convenient giving. Customers can make one-time or recurring donations to charities, schools, or religious organizations whenever inspired.

Benefits for Betterment Advisors:

• Enables advisors to help their clients manage financial windfalls, avoid capital gains taxes when donating long-term appreciated assets, and rebalance portfolios.
• Helps advisors attract, deepen, and retain customers by connecting with them on a more personal matter—charitable giving.
• With built-in advisor tools, they can advise and take action on customers’ behalf, including making contributions, portfolio changes, and donations.

To learn more about this integration and how it works, visit daffy.org/resources/betterment.

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.

About Betterment

Betterment LLC ("Betterment") is the largest independent digital financial advisor, using automated technology powered by human expertise to fulfill a singular mission: making people's lives better. With easy-to-use saving, investing, and retirement solutions, Betterment is built to help people optimize their money, no matter their level of experience or how the market is doing. Launched in 2010, Betterment helps more than 900,000 customers manage over $50 billion with curated selections of low-cost, expert-built investing portfolios; personalized guidance; and tax-smart tools. The company has received multiple awards for its investing app, including Buy Side from WSJ (2024) and Bankrate (2024). Learn more and for additional disclosure on these awards, visit https://www.betterment.com/#award-disclosure.