Daffy unveils private stock donation platform for employees' charitable giving

Daffy unveils private stock donation platform for employees' charitable giving
Groundbreaking workplace initiative looks to unlock billions of dollars' worth of philanthropic impact by easing process of donating in kind with company shares.
OCT 17, 2024

Daffy.org, a fintech platform geared towards charitable giving, has unveiled a new program allowing employees of private companies to donate their private stock to charitable causes.

In what the tech firm describes as a first of its kind, Daffy's private stock donation program is designed to convert private stock into charitable donations. Figma, a design software company, is taking a pioneering role in implementing the program for its employees.

The program comes at a time of transformation in the landscape of company ownership. Over the last 20 years, the number of US-listed public companies has plunged by more than half, while private companies have proliferated.

Unicorns aren't as rare as they once were: by at least one count, there are now over 700 unicorns – private companies valued at over $1 billion – across the US, collectively worth more than $2.2 trillion. This growth in private companies means more employees receive private stock as compensation, but many struggle to access liquidity or meet financial obligations while these stocks remain unsellable.

In response to this, companies are increasingly conducting tender offers to provide liquidity for employees. Some of the top valued startups participating in these offers include ByteDance, SpaceX, and Stripe. Daffy's Private Stock Donation Program complements these efforts by giving employees the ability to donate shares either during or after such liquidity events, transforming stock into charitable contributions while also offering tax savings.

“As more private companies conduct tender offers to provide liquidity to their teams, every company should offer a private stock donation program,” Adam Nash, co-founder and CEO of Daffy, said in a statement. “This not only improves employees’ financial outcomes, but also unlocks billions for charity.”

Historically, donating private stock was largely limited to wealthy founders, board members, and venture capitalists. Daffy’s new program simplifies the process, making it more accessible to a broader group of employees.

Praveer Melwani, CFO of Figma, expressed enthusiasm about the program launch at his company.

“Giving Figmates more ways to support causes they care about makes an impact that extends beyond our company and community,” Melwani said, referring to the company's internal moniker for participants in the program.

Through its new program program, Daffy says employees can donate the full value of their private stock, qualify for income tax deductions, and avoid capital gains taxes on appreciated shares.

Daffy also offers a donor-advised fund through a user-friendly platform, allowing employees to grow their contributions tax-free and donate whenever they choose. Those features make DAFs an ideal vehicle for peope to amplify their giving, with one study indicating they lead to a 96% increase in annual giving among donors who use them.

The Private Stock Donation Program is part of Daffy for Work, which provides employers with tools to enhance employee charitable giving. Employers can also match donations or contribute directly to employee funds, making it easier for workers to engage in philanthropy.

The launch of Daffy's new charitable giving program comes shortly after Janney Montgomery Scott, which was recently acquired by KKR, announced its own venture into the DAF space with its own in-house charitable giving fund for its advisors and their clients.

Latest News

Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York
Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York

Elsewhere in Utah, Raymond James also welcomed another experienced advisor from D.A. Davidson.

UBS loses arbitration battle in fiduciary fight over foundation funds
UBS loses arbitration battle in fiduciary fight over foundation funds

A federal appeals court says UBS can’t force arbitration in a trustee lawsuit over alleged fiduciary breaches involving millions in charitable assets.

RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee
RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee

NorthRock Partners' second deal of 2025 expands its Bay Area presence with a planning practice for tech professionals, entrepreneurs, and business owners.

Three easy ways to boost your firm’s impact this summer
Three easy ways to boost your firm’s impact this summer

Rather than big projects and ambitious revamps, a few small but consequential tweaks could make all the difference while still leaving time for well-deserved days off.

Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite
Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite

Hadley, whose time at Goldman included working with newly appointed CEO Larry Restieri, will lead the firm's efforts at advisor engagement, growth initiatives, and practice management support.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.