CRYPTO 101 Episode 648: Learn About Donor Advised Funds in Crypto with Daffy

Release Date: April 1, 2025

Hosts: Bryce Paul & Brendan Viehman
Guest: Adam Nash, CEO and Co-Founder of Daffy

1. Introduction

In this episode of CRYPTO 101, hosts Bryce Paul and Brendan Viehman delve into the innovative intersection of cryptocurrency and philanthropy with special guest Adam Nash, CEO and Co-Founder of Daffy. They explore how blockchain technologies are revolutionizing charitable giving through donor-advised funds (DAFs).

2. Guest Introduction

00:10 - 00:33
Brendan welcomes Adam Nash, highlighting his extensive experience in the crypto space.

Brendan:
"We love bringing in leaders from all ends of the crypto space. And this time around, we have Adam Nash, the CEO and co-founder of Daffy." [00:10]

Adam Nash:
"Great to be here." [00:31]

3. Adam Nash’s Career Path

Adam provides a comprehensive overview of his career trajectory, emphasizing his passion for using technology to solve real-world problems.

02:27 - 04:41
From his beginnings as a software engineer with a master's in human-computer interaction, Adam’s journey includes pivotal roles at Apple, eBay, LinkedIn, Wealthfront, and ultimately founding Daffy.

Adam:
"My passion has always been about not just technology by itself, but using technology to solve real problems for real people." [02:27]

He also shares his commitment to financial literacy, teaching a class at Stanford on personal finance for engineers.

4. Importance of Financial Literacy

04:41 - 05:53
Both hosts and Adam discuss the widespread lack of financial education, emphasizing the necessity of understanding personal finance beyond academic credentials.

Bryce Paul:
"Most places don't actually teach you the basics of how money works or how to live your financial life." [05:07]

5. Introduction to Donor-Advised Funds (DAFs)

14:15 - 17:00
Adam introduces the concept of Donor-Advised Funds (DAFs), explaining their benefits and how Daffy incorporates crypto into this philanthropic model.

Adam:
"DAFI stands for Donor Advised Fund for you. It's a tax-advantaged account for charitable giving." [14:15]

He elaborates on the tax advantages of donating crypto, highlighting the avoidance of capital gains taxes and the ability to claim significant deductions.

Adam:
"When you donate crypto, you get all those benefits and you never have to worry about the taxes." [17:00]

6. Daffy’s Mission and Services

17:00 - 21:45
Adam discusses Daffy's mission to simplify and democratize charitable giving through technology, making it accessible for everyday people, not just the ultra-wealthy.

Adam:
"Our mission at Daffy is to help people be more generous. We're trying to take all the friction out of giving because we think by doing that people will end up being true to their natures, which is to be more generous." [27:08]

Daffy supports a wide range of crypto assets and integrates with platforms like Coinbase and Robinhood to facilitate seamless donations.

7. Benefits of Using DAFs for Crypto Donations

18:51 - 25:54
The discussion covers how DAFs allow donors to maximize their contributions without the complexities of directly handling crypto transactions or dealing with multiple charities' varying levels of crypto support.

Brendan:
"This also allows you to maximize profits... You're also maximizing the amount that people can donate and thus the amount that these nonprofits can receive." [22:12]

Adam explains how Daffy manages investments within the DAF, offering various portfolio options, including pure crypto and diversified assets.

8. Integration with Robinhood

38:40 - 40:15
Adam highlights Daffy's pioneering integration with Robinhood, enabling users to easily transfer crypto holdings from Robinhood to Daffy for charitable donations.

Adam:
"We were very proud to be the first donor advised fund to integrate with Robinhood." [38:40]

This collaboration simplifies the donation process for Robinhood users, aligning with Daffy’s mission to streamline philanthropy.

9. Future Plans and Roadmap

40:56 - 47:38
Adam shares insights into Daffy's growth strategies, including expanding crypto asset support, enhancing user experience, and fostering competition to encourage traditional financial institutions to adopt crypto-friendly philanthropic tools.

Adam:
"There's so much innovation to be had... we're hoping to do that for crypto as well." [42:37]

He also mentions ongoing campaigns like "Gains for Good," which successfully raised significant funds for charity by leveraging crypto market gains.

10. Security Measures

35:47 - 38:23
Security is paramount for Daffy. Adam outlines their use of trusted partners like Coinbase Institutional for backend support and Sardine for KYC/AML compliance, ensuring safe and regulated transactions.

Adam:
"We use Coinbase Institutional as kind of our backend... and Sardine for KYC and AML." [36:17]

He emphasizes that donations through Daffy are secure and compliant with all necessary regulations, providing peace of mind for donors.

11. Impact and Growth

29:14 - 47:38
Adam discusses the substantial impact Daffy has made in just three years, handling nearly $100 million in crypto contributions and encouraging more generous and sustained charitable giving. He underscores the platform's role in enabling both small and large-scale donations, fostering a culture of continuous philanthropy.

Adam:
"We raised over $92 million in stock and crypto put aside for charity just in November and December of last year alone." [32:40]

12. Conclusion

In closing, Bryce and Brendan commend Adam and the Daffy team for their innovative approach to integrating crypto with charitable giving. They highlight the platform's potential to transform philanthropy and encourage listeners to explore Daffy for their own charitable contributions.

Bryce Paul:
"Adam, thank you so much for your time... take care and thanks for everything." [51:33]

Adam Nash:
"I would encourage people to check out the resources if you have questions about what it means to donate crypto..." [50:40]

Notable Quotes with Timestamps

• Brendan [00:10]:
  "We love bringing in leaders from all ends of the crypto space. And this time around, we have Adam Nash, the CEO and co-founder of Daffy."

• Adam [02:27]:
  "My passion has always been about not just technology by itself, but using technology to solve real problems for real people."

• Bryce [05:07]:
  "Most places don't actually teach you the basics of how money works or how to live your financial life."

• Adam [14:15]:
  "DAFI stands for Donor Advised Fund for you. It's a tax-advantaged account for charitable giving."

• Brendan [22:12]:
  "This also allows you to maximize profits... You're also maximizing the amount that people can donate and thus the amount that these nonprofits can receive."

• Adam [27:08]:
  "Our mission at Daffy is to help people be more generous. We're trying to take all the friction out of giving because we think by doing that people will end up being true to their natures, which is to be more generous."

• Adam [38:40]:
  "We were very proud to be the first donor advised fund to integrate with Robinhood."

• Adam [42:37]:
  "There's so much innovation to be had... we're hoping to do that for crypto as well."

• Adam [50:40]:
  "I would encourage people to check out the resources if you have questions about what it means to donate crypto..."

Key Takeaways

• Donor-Advised Funds (DAFs) offer a tax-advantaged way to manage charitable donations, including crypto assets.
• Daffy simplifies the process of donating crypto, making philanthropy accessible to everyday investors.
• Integration with Platforms like Robinhood enhances the ease of transferring crypto for charitable purposes.
• Security and Compliance are prioritized through partnerships with established institutions like Coinbase and Sardine.
• Future Growth aims to expand asset support, improve user experience, and influence traditional financial institutions to adopt crypto-friendly philanthropic tools.

For more information, visit Daffy.org and follow Adam Nash on social media platforms to stay updated on the latest in crypto philanthropy.