Story of Daffy: Nonprofit Fintech Reinventing Donor-Advised Funds -Entrepreneur
Story of Daffy:
In 2020, fintech veteran Adam Nash, along with Alejandro
Crosa, founded Daffy, a not-for-profit fintech startup based in Los Altos,
California. Their mission was simple: make charitable giving more accessible,
social, and habitual for everyone.
Reimagining the Donor-Advised Fund
Daffy offers a modern donor-advised fund (DAF), sometimes
called a “401(k) for charitable giving.” Members can set money aside for
tax-free growth and later grant it to charities of their choice, making
philanthropy simpler and more structured.
Social and Accessible Giving
The platform features a real-time philanthropic feed,
shareable charitable profiles, and multiple ways to donate—including cash,
stocks, and crypto. Daffy integrates with other fintech apps, creating a
“LinkedIn for Charity” where users can discover and support causes with friends
and family.
Not-for-Profit Philosophy
Unlike traditional DAF providers, Daffy focuses on
encouraging generosity rather than the size of donations. Members pay a low
monthly fee, often just $3, to access a full suite of giving tools and connect
with over 1.5 million charities across the U.S.
Validating the Idea
Nash and Crosa noticed that many people wanted to donate but
often procrastinated or found the process complicated. They realized automation
could change default behavior from doing nothing to actively giving, and Daffy
was born to solve this problem.
Funding and Support
Daffy raised $21.9 million in Series A funding, with
participation from Ribbit Capital, Coinbase Ventures, and other notable
investors including Reid Hoffman, Aaron Levie, and Amy Chang. This support has
allowed the startup to expand its team and scale its platform.
Building the Team
The company currently has around 20 employees and
contractors. Daffy actively hires engineers and designers to improve the
platform, ensuring the user experience remains seamless and engaging for donors
of all backgrounds.
Target Audience
Daffy’s early users are tech-savvy, charity-minded
Millennials, Gen Xers, and Baby Boomers who give frequently. The platform
supports diverse donation methods, including cash, stock, ETFs, crypto, and
transfers from existing DAFs.
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Early Adoption and Growth
The first 100 users joined through word-of-mouth, social
media, Product Hunt, and media coverage. Today, the platform has over 10,000
members, who donated $40 million in 2024 to roughly 6,700 charities—a threefold
increase from the previous year.
Metrics and Impact
Daffy tracks engagement by the number of people committing
to regular giving, the percentage of users achieving their annual giving goals,
and the total donations flowing to charities. The platform emphasizes the
commitment to give over the donation amount.
Technology and Innovation
Nash believes in using AI and modern fintech tools to
enhance philanthropy. By streamlining processes and offering personalized
guidance, Daffy reduces barriers and encourages donors to give more frequently,
making philanthropy as accessible as investing or saving.
Balancing Accessibility and Scale
While Daffy does have some high-net-worth donors, its median
donation in 2024 was just $100, demonstrating accessibility for everyday
givers. The platform is designed to serve both small donors and larger
philanthropists, creating a community focused on generosity rather than wealth.
Timeline of Daffy
- 2020
– Adam Nash and Alejandro Crosa co-found Daffy in Los Altos, California.
- 2020
– Platform development begins with the goal of modernizing donor-advised
funds.
- 2020–2021
– Initial testing and validation; first 100 users join via word-of-mouth,
Product Hunt, and media coverage.
- 2021
– Series A funding raised, totaling $21.9 million, with backing from
Ribbit Capital, Coinbase Ventures, and notable angels.
- 2022
– Platform continues to grow; early adopters provide feedback to refine
features and increase engagement.
- 2023
– Membership expands; Daffy integrates multiple donation options including
cash, stock, ETFs, and crypto.
- 2024
– Over 10,000 members donate $40 million to approximately 6,700 charities,
a threefold increase from 2023.
- 2025
and Beyond – Daffy aims to scale to millions of users, combining
fintech innovation, social features, and automation to encourage habitual
giving.
