Donor-advised funds, or DAFs, have long been used by tax-savvy individuals for the unique benefits they offer. A DAF allows a donor to deposit funds marked for charity, and receive an immediate tax deduction on their income. Although the tax deduction is immediate, the funds can be granted to nonprofits over time for maximum benefit.
A Kadogo Giving Account is a revolutionary new type of donor-advised fund. Kadogo users can earn cashback rewards from participating businesses, round up spare change from everyday transactions, and automatically distribute those funds to various nonprofits on the platform.
What Makes A Kadogo Giving Account Unique?
Kadogo Giving Accounts are unlike other donor-advised funds because they offer users the ability to fund their account without increasing their regular spending. When you create a free Kadogo account, you are automatically given a virtual wallet that functions as your personal donor-advised fund. Simply browse the rewards section of the app, find a local business you’re interested, and shop like normal. Cashback rewards are automatically processed and added to your virtual wallet. These funds are distributed to up to 5 charities of your choice on a monthly basis. You have complete control over what percentage goes to which organization.
What Kind of Tax Benefits Can I Receive?
Contributions to your Kadogo Giving Account are generally rewarded with up to a 60% deduction from your adjusted gross income (AGI). This deduction is available immediately although the funds do not have to be given to a charity right away.
Kadogo also offers you the ability to donate appreciating assets that have been held for more than one year. This method of donating allows you to bypass capital gains tax on these assets that would normally be applicable during liquidation. The income tax deduction you receive will be based on the full market value of the asset, allowing for an up to 30% deduction.
How Do I Report Contributions When Doing My Taxes?
Kadogo offers you the ability to quickly export your entire donation history to make reporting to the IRS painless. No longer do you have to contact charities directly and struggle through paperwork every year. With a Kadogo Giving Account, you only have to browse the in-app list IRS-qualified public charities and set your custom donation preferences.
Kadogo’s support team is always available to answer any questions you may have regarding your taxes. This includes strategies to maximize your tax advantages. No matter the question, we are happy to help!
Can I Invest My Donations?
As mentioned previously, deposited funds do not have to be donated immediately. In fact, you are able to recommend an investment strategy to increase the total amount of charitable funds available to you. This potential growth is tax-free, and allows for maximum benefits to both you and the charities of your choice.
What Charities Are Eligible For Donations With Kadogo?
At Kadogo, we know it can be hard to decide which nonprofits to choose. The beauty of Kadogo is that we’ve conveniently put a helpful list of impactful nonprofits all in one place. As new charities spring up every day, we continue to expand our list. You can filter our list to search for specific charities or general categories. The goal here is to connect you to lesser known nonprofits who may have a mission perfectly in line with your vision.
Any IRS-qualified charity or nonprofit organization is eligible to receive funds from your Kadogo Giving Account. If you are unable to find the charity you are looking for on the app, we encourage you to share this signup link for them to create a free account with us.
How Do I Sign Up For A Giving Account?
Kadogo makes signup quick and easy. Download the Kadogo app available in both the App Store and Google Play Store. Once opened, create a free account and select up to five charities to distribute your funds to. Add your preferred payment method, and you’re all done! You can return to the Kadogo app at any time to browse new cashback reward offers near you to further increase your giving potential. Visit our individuals page for more info. Start making an impact today!