Daffy and Betterment have announced an integration that will allow Betterment customers to easily donate low-cost-basis securities to more than 1.5 million U.S. charities through Daffy’s donor-advised fund.
With this integration, Betterment’s customers can donate appreciated shares from their Betterment taxable accounts to Daffy and manage their donations by setting up a Daffy account for a monthly fee.
Betterment’s platform automatically selects the lowest cost-basis investments held over a year, according to the announcement, allowing donors to maximize tax savings and more 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. Customers can donate to nearly any U.S. charity, including schools, faith-based organizations and international aid groups.
