The Stacking Benjamins Show: Donor Advised Funds 101 (with Adam Nash) — SB1724
Release Date: August 20, 2025
Hosts: Joe Saul-Sehy, OG, Len Penzo
Guest: Adam Nash, CEO/Founder of Daffy
Episode Overview
This episode brings a fun, informative look at charitable giving, focusing on donor advised funds (DAFs) as an accessible, tax-advantaged tool for supporting the causes you care about. Joe, OG, and Len chat with Adam Nash—tech entrepreneur, former Wealthfront CEO, and current Daffy CEO—about the mechanics, benefits, and common misconceptions surrounding DAFs. Alongside, the crew discusses car insurance claims and shares some signature basement humor.
Main Theme:
Making Generosity Easy—Understanding and Using Donor Advised Funds
Key Discussion Points & Insights
1. Donor Advised Funds: Why the Surge in Popularity?
[08:18–09:49]
- Adam Nash explains two big reasons why DAFs are becoming mainstream:
- A huge number of Americans give to charity (50–60 million households!), but most don’t plan or budget for it.
- The American love of tax-advantaged accounts (401ks, IRAs, 529s, etc.) makes DAFs a natural fit for those who are charitably inclined.
Quote:
"Most people, when they find out, hey, there's a tax advantaged account for charitable giving, most people are like, oh, tell me more. Why didn't someone tell me that this thing exists?"
—Adam Nash [09:20]
2. What Is a Donor Advised Fund? (DAF 101)
[09:49–11:17]
- DAF = a separate account, just for giving. You fund it when it makes sense for you, money grows tax-free, and giving is as easy as a few taps.
- Big perk: Immediate charitable deduction when you contribute, NOT when you ultimately give the money to charity.
Quote:
"All a donor advised fund is, is an account designed for giving to charity. ... You put money aside when it’s convenient for you ... and then giving is just a few taps on your phone."
—Adam Nash [10:03]
3. Major Benefits—Tax Advantages and Giving Appreciated Assets
[11:17–14:21]
- Donating appreciated assets (stock, crypto, ETFs) to a DAF means:
- You never pay capital gains taxes on the growth.
- You get a deduction for the full market value.
- DAFs handle the complicated transfers to charities, even if the charity is too small to accept stocks directly.
- Encourages planning: setting a giving goal, tracking what you gave last year, and using tax-smart assets.
Quote:
"If you were lucky enough to buy Apple stock at $100 and now it’s $200 ... you get a deduction for $200, and you’ll never pay the capital gains on that run from 100 to 200."
—Adam Nash [11:36]
Joe’s reflection:
"I’ve just found in my life, the more I give, the more I get. ... The more I give away, the more I feel like the universe gives it back to me."
—Joe Saul-Sehy [14:21]
4. Myths and Misconceptions About DAFs
[15:22–17:56]
- Myth #1: DAFs are "only for the ultra-wealthy." In reality, most giving in the US is done by "people like you and me."
- Myth #2: They’re complicated or only for those with financial advisors. Adam describes how sign-up is simple and affordable—Daffy ("free under $100 and just $3/month otherwise").
- Behavioral science: Setting a giving goal and automating it increases generosity by 32% on average.
Quote:
"It turns out if you just set a number ... and automate it, it leads people to be more generous. ... That's why we built the platform we did."
—Adam Nash [17:21]
5. The Power of Bucketing and "Mental Accounting" for Generosity
[18:00–19:56]
- Bucketing money for giving isn't just about efficiency; it leverages human nature (mental accounting) to make generosity easy and consistent, not accidental.
- Labeling funds with specific purposes (retirement, college, charity) is "a powerful thing" that helps you stay committed.
Quote:
"If you’re going to label money, label it for something that matters."
—Adam Nash [18:33]
6. Addressing the $53 Billion "Money Pile": Why DAFs Encourage Ongoing Giving
[20:39–24:34]
- Critics point to "unspent" DAF balances, but Adam counters:
- DAFs already distribute a far higher percentage annually (over 38% at Daffy) than foundations (typically 5%).
- DAFs allow for recurring giving, creating reliable income streams for nonprofits—"like your own mini endowment."
- Most charities want ongoing support, not just one-off gifts.
- Good technology nudges people toward giving rather than just hoarding funds.
Quote:
"The way I think about donor advised funds is, it’s kind of like having your own mini endowment where ... you can set up a recurring donation."
—Adam Nash [22:24]
7. Investing Inside a DAF: Growing Your Giving (or Keeping it Safe)
[25:08–26:01]
- Money in a DAF can be invested according to your preferences—stocks, bonds, cash.
- "Advisors love this feature." Some want money to grow for bigger gifts; others want zero risk.
8. Why Adam Nash Started Daffy—Mission and Differentiators
[26:01–31:07]
- Origin Story:
- Adam was inspired by teaching his kids to give through piggy banks, noticing there wasn't a "better product" for charitable giving in the digital age.
- Daffy aims to bring modern tech, thoughtful design, and low, flat fees to DAFs.
- Major Differentiators:
- Flat monthly fee (not a percentage of assets like Vanguard/Schwab/Fidelity).
- No minimums for most features.
- User-friendly technology.
- Unique features—gift cards, campaign matching, crypto support.
Quote:
"Instead of focusing [technology] on giving people excitement when they buy a stock ... we could use all those same techniques to help people do something good."
—Adam Nash [27:08]
9. Human Stories and The Importance of Legacy in Giving
[32:52–34:32]
- Adam reflects on "dream dinner guests" in philanthropy, citing the impact of long-term institutional giving (like Andrew Carnegie, 100 years ago), emphasizing thinking about impact over decades or generations.
- "There's that old expression—you know, when’s the right time to plant a tree? The right time was 10 years ago. The second best time is today."
—Adam Nash [34:02]
- "There's that old expression—you know, when’s the right time to plant a tree? The right time was 10 years ago. The second best time is today."
10. How to Take Action—Summary Advice
[67:11+]
- Understand the tax rules.
- Consider giving appreciated assets, not just cash.
- Use technology to track, plan, and automate your generosity.
Doug's Parting Wisdom:
"How do you tie all this together? How about this: Charity starts at home. ... And when your car is in the shop, make sure your loaner has enough trunk space for all your tax receipts."
—Doug [67:09]
Notable Quotes & Memorable Moments
- Behavioral Incentives:
"The research says that people who pre-commit, who set a goal for their giving, on average end up giving 32% more."
—Adam Nash [17:56] - Bucketing:
"Most of my problems investing are between my ears ... In my head, I know exactly where my giving is."
—Joe Saul-Sehy [18:01] - On Myths:
"The myth that I see about donor advised funds is that somehow it’s incredibly difficult ... but it isn’t."
—Adam Nash [16:50] - Fun Anecdotes:
- Adam referencing the piggy bank behind him while discussing how to teach kids about giving [26:45].
- Playful ribbing between hosts about colon cleanse timing, book reviews, and signature lazy basement style.
Segment Timestamps
- Sponsor/Intro Banter: 00:00–08:17 (skip for core content)
- Adam Nash Interview (DAFs): 08:17–34:53
- Quote on ongoing giving / mini endowments: [22:24]
- Quotes on investing inside DAFs: [25:08–26:01]
- Fee and product differentiators: [28:57–31:07]
- Fun philanthropy/legacy discussion: [32:52–34:32]
Supporting Segments
Car Insurance Do's and Don'ts
(41:05–56:58)
- The team reviews accident scene best practices: report accidents, seek treatment, collect information, take photos, save receipts, don't admit fault, don't negotiate with the other driver, and confirm your insurance policy details.
- Comical real-life stories from the hosts about their own car accident mishaps and odd insurance negotiations.
- Running theme: read policies for coverage not just cost—protection is paramount.
Episode Tone & Takeaways
- Tone: Approachable, conversational, occasionally irreverent, but with clear, useful expertise.
- Takeaway: DAFs are no longer an obscure tool for the wealthy—they’re accessible, tax-smart, and can greatly increase both your impact and your enjoyment of charitable giving. With the right technology and mindset, generosity is not just easy, but fun and rewarding.
Additional Resources
- Adam Nash / Daffy: daffy.org
- Len Penzo’s New Book: True Money Stories: Madcap Musings about Family Life and Personal Finance (see [66:11] onward for colorful negative review quotes featured on the cover!)
- Stacking Benjamins Show Notes: stackingbenjamins.com
Summary Table: DAF Advantages vs. Myths
| Feature | Reality / Benefit | Common Myth / Obstacle | |-----------------|--------------------------------------|----------------------------| | Tax advantages | No capital gains, full deduction | "Only for the wealthy" | | Ease of setup | Simple, affordable, digital-first | "It’s complicated" | | Use cases | Any size gift, recurring giving | "Only for big one-time gifts" | | Impact on charity | Ongoing support, reliability | "Money just sits unused" | | Investment | Fully investable, flexible options | N/A |
“If you give to charity regularly, you should have a donor advised fund.”
—Adam Nash