Daffy.org Unveils Private Stock Donation Program, Revolutionizing Charitable Giving
Daffy.org, an innovative platform dedicated to charitable contributions, has launched its transformative Private Stock Donation Program, aiming to unlock significant financial resources for nonprofits. This initiative is set to empower employees of private companies, such as Figma, to convert their private equity into meaningful contributions for charitable causes.
The landscape of American businesses has greatly shifted in recent years. Private companies now outnumber their public counterparts, and the rise in the value of private stocks is remarkable. Over the last two decades, the number of public U.S. companies has dwindled by more than half, giving rise to over 700 private unicorns valued collectively at more than $2.2 trillion. This trend indicates a growing delay in public offerings, with the average time from founding to IPO soaring by over 65% from 2000 to 2023.
As many employees now receive private stock as part of their salary packages, they face the challenge of accessing funds when such shares are non-liquid. To mitigate this, many firms are launching tender offers, providing avenues for employees to gain liquidity. Notably, some of the most highly valued startups, including ByteDance and SpaceX, have recently participated in such offerings.
Daffy’s new program serves as a vital resource in this shifting paradigm. It enables employees to donate their private stocks either on their own schedule or following liquidity events, thereby making charitable donations more straightforward and impactful. Adam Nash, Daffy’s CEO, emphasized the importance of this initiative not only for enhancing financial outcomes for employees but also for channeling substantial funds into the charitable sector, aligning with the priorities of today’s socially conscious workforce.
Traditionally, only a select group of individuals—such as founders and venture capitalists—could easily donate private stock, due to stringent requirements and high minimum thresholds. However, Daffy’s program breaks down these barriers, making it accessible to a wider employee demographic. This allows individuals to not only contribute more effectively to their chosen causes but also to benefit from tax deductions related to their donations.
Praveer Melwani, CFO of Figma, expressed enthusiasm about the program, noting its potential to extend meaningful impact beyond individual companies and into the broader community.
Benefits of Donating Private Stock
Daffy’s Private Stock Donation Program simplifies the donation of private stock, allowing employees to contribute the full fair market value of their shares directly to charities, thus retaining the value without needing to liquidate their assets first. This approach also offers significant tax benefits—donors can enjoy immediate deductions based on the current fair market value of the stock and avoid any capital gains tax associated with the appreciated value of their shares.
With the convenience of a modern donor-advised fund, participants can easily contribute additional assets, grow their funds tax-free, and facilitate their charitable giving whenever inspiration strikes.
The Daffy program extends the benefits of workplace giving, allowing companies to match employee donations in their DAF accounts, thereby showcasing a commitment to social responsibility. Notably, Daffy for Work has already garnered recognition as one of Fast Company’s 2024 World Changing Ideas, with companies like OpenAI and Acorns adopting its platform.
The Daffy Difference
Daffy’s approach to private stock donations leverages cutting-edge technology and a user-friendly experience, significantly reducing costs and simplifying the process for employees and companies alike. Daffy members at the benefiting level can donate private stocks without any upfront fees, only incurring a modest fee of 1.5% once the stock is eventually sold.
For employees interested in launching a program within their companies, Daffy actively encourages collaboration. If enough employees express interest, Daffy will facilitate the process, making charitable giving more accessible than ever.
As the trend towards private equity continues, Daffy’s Private Stock Donation Program provides an essential bridge for converting trapped wealth into scholarships, healthcare, and various charitable initiatives. By democratizing access to philanthropy through modern means, Daffy is paving the way for a more inclusive and impactful charitable landscape.
