Revolutionizing philanthropy with AI, Daffy is simplifying charitable giving by making it easier and more accessible for ordinary people to donate.
The world of philanthropy has long been criticized for its lack of technological advancements. Until now, charitable giving was often a manual and time-consuming process, relying on outdated methods such as emails and PDFs.
Philanthropy is the practice of donating time, money, and resources to help those in need.
It involves giving back to society through charitable acts, often with the goal of creating positive change.
Historically, philanthropy has been a driving force for social progress, from providing disaster relief to funding education initiatives.
According to a 2020 report, global philanthropic donations reached $550 billion, demonstrating its significant impact on addressing global challenges.
Philanthropy’s reliance on these outdated methods can be attributed to the sector’s slow adoption of technology. This has resulted in a lack of efficiency and transparency, particularly among wealthy donors who use donor-advised funds (DAFs).
Dafs have been criticized for their limited transparency requirements and delayed fund distribution to charities. However, with the advent of AI-powered tools, Daffy aims to revolutionize this sector by making charitable giving easier and more accessible.
A New Era in Philanthropy
Daffy’s founder and CEO, Adam Nash, has a wealth of experience in fintech, having previously served as CEO of Wealthfront and board member at Acorns. However, it was a simple question that sparked his interest in philanthropy: why is the concept of giving drilled into children through school lessons and teachings from family and community members, but largely neglected in adults?
Adam Nash is an American entrepreneur and investor.
He co-founded StumbleUpon, a discovery platform that allows users to find new content based on their interests.
Nash also served as the CEO of Braintree, a payment processing company acquired by PayPal in 2013 for $800 million.
He has invested in several startups through his venture capital firm, Homebrew Ventures.
The Launch of Daffy
In 2020, Nash co-founded Daffy, which provides streamlined access to donor-advised funds. Since its launch, the platform has drawn over 10,000 members who have donated $40 million to roughly 6,700 charities—a three-fold increase from the year prior.
AI-Powered Features for Easier Giving
Daffy‘s recent adoption of AI tools is designed to make DAFs even more accessible. One of the latest features, Quick Donate, enables users to make donations by typing or speaking simple commands like ‘Give $100 to my daughter’s school.’
Quick donate, also known as one-click donations, is a feature that allows users to quickly and easily contribute to their favorite charities.
This feature uses pre-filled payment information to streamline the donation process, reducing the time it takes for donors to complete a transaction.
Studies have shown that quick donate features can increase donation rates by up to 30%.
Additionally, this feature can also help reduce cart abandonment rates by minimizing the number of steps required to complete a donation.
This tool draws on users’ app history to personalize and streamline the experience, aiming to eliminate the friction caused by forms and administrative hurdles. About 60 percent of people who don’t complete a donation on their first attempt intend to return—but rarely do.
Encouraging Repeat Giving
Daffy’s AI-powered features also include automated thank-you notes sent after donations, which Nash says encourage repeat giving. The technology helps surface information about charities that might otherwise be buried in hard-to-access documents like 990 forms, making it easier for users to make informed decisions.
A Barrier-Free Platform
While Daffy does have wealthy members, its median donation last year was just $100, and the platform offers a lower barrier to entry than most other DAF services, charging most members only $3 per month.
This approach aims to bring philanthropy within reach of ordinary people, rather than just focusing on the wealthy. Nash emphasizes that he believes in transparency and scrutiny, but also thinks that concern about billionaires’ activities should not deter the development of tools that could be valuable for tens of millions of people.
