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How Daffy’s Private-Stock Donation Program Works for Employees and Nonprofits

Daffy’s program lets private-company employees contribute shares to a donor-advised fund. Here’s how transfers, liquidity, employer coordination and grant recommendations work.
From TheFinanceBase Team4 min to read

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Daffy Charitable Fund’s private-stock program gives employees of private companies a way to contribute company shares to a donor-advised fund, including around a tender offer or through an ad-hoc donation. For illiquid shares, Daffy says it takes ownership and holds them until they can be sold or a future liquidity event occurs; the donor can begin recommending charitable grants after the shares are sold. Employers coordinate the setup and transfer, so this is not a direct donation of unliquidated shares to a nonprofit.

What Daffy’s private-stock program offers

Daffy describes the program as a way for employees at private companies—not only founders and executives—to donate company stock for charitable giving. The opportunity may be offered around a tender offer or arranged on an ad-hoc basis. Employees can register interest in having their workplace adopt the program; Daffy says it will help launch one when there is enough employee interest. Employers can contact Daffy to discuss participation. The program explanation was published October 17, 2024, so confirm current availability and terms with Daffy before acting: Daffy’s private-stock program explanation.

What happens to illiquid shares

Daffy says illiquid shares are not sold when donated. Ownership transfers to Daffy Charitable Fund, which holds the shares until they can be sold or a future liquidity event occurs. Once a sale takes place, the proceeds are invested in the portfolio assigned to the member’s Daffy account. The member can then recommend charitable donations from that fund. Daffy says a member may contribute other assets in the meantime and begin recommending donations from those assets separately. Its explanation of this process was also published October 17, 2024: Daffy’s guide to donating illiquid shares.

What employers need to coordinate

Daffy outlines five parts of an employer-led setup. The company and Daffy need to establish the terms and timing, including whether the opportunity is one-time or ongoing. The employer then obtains board approval, gathers employee interest, transfers the stock, and arranges for shares to be assigned to the appropriate member accounts. Daffy points to tender offers and structured secondary transactions as possible occasions to run the program. Its employer guidance was published October 17, 2024: Daffy’s employer workflow.

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  1. Set terms and timing: Decide whether the opportunity is one-time or recurring and when it will be available.
  2. Obtain board approval: Secure the company’s required approval for the arrangement.
  3. Gather employee interest: Determine which employees want to participate.
  4. Transfer the stock: Coordinate the actual transfer with Daffy.
  5. Assign shares to member accounts: Ensure each contribution is associated with the appropriate Daffy account.

Why a nonprofit may not receive shares directly

Daffy operates as a donor-advised fund (DAF): a donor contributes assets to the fund and may later recommend grants to eligible charities. In this private-stock process, Daffy says the fund holds illiquid shares until sale or a future liquidity event, and grant recommendations become available after sale. That means a nonprofit should not be assumed to receive the unliquidated shares when they enter the fund.

Daffy’s charity-facing information, published July 13, 2026, says members can recommend donations to more than 1.5 million U.S. charities, that Daffy charges no donation transaction fee, and that disbursements are made by electronic payment or U.S. mail. Those are Daffy’s descriptions of its service; they do not establish that every nonprofit or private-stock contribution will be accepted. See Daffy’s explanation for charities.

Tax, control and acceptance questions to resolve

A stock contribution to a DAF is not the same as keeping the shares and directing a nonprofit to receive them. Daffy says contributions to its fund are irrevocable, and assets assigned to portfolios are held in pooled accounts registered to Daffy Charitable Fund. Donors should not treat contributed assets as property they still own or control. Daffy’s portfolio explanation was published April 2, 2026: Daffy’s portfolio and irrevocability information.

The available program information does not establish a universal minimum contribution, valuation method, acceptance criteria, or an individual donor’s tax deduction. Tax treatment can depend on the donor’s circumstances and the type of shares. Daffy’s August 5, 2026 tax guidance advises private-stock contributors to inquire promptly about their specific situation and says its educational material is not tax or investment advice. Review the transaction with a qualified tax adviser and confirm acceptance, valuation, transfer timing, fees and terms directly with Daffy before committing: Daffy’s 2026 tax and contribution guidance.

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What Daffy reports about private-stock giving

In a September 30, 2026 announcement distributed through Business Wire, Daffy said it had received more than $600 million in private and restricted stock contributions from January 1 through August 31, 2026; it identified that figure as an initial, unaudited result. Separately, Daffy reported more than $800 million in total contributions to its funds during the first nine months of 2026, also described as initial and unaudited. The two figures cover different asset categories and reporting periods and should not be conflated. The announcement quotes co-founder and CEO Adam Nash describing the company’s goal of making setting aside stock for charity as natural as setting aside cash. These company-reported figures and the statement of intent are not independent evidence of program outcomes: Daffy’s September 30, 2026 announcement.

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