Daffy, a startup founded by Fintech veteran and former Wealth CEO Adam Nash, aims to inject AI into the poor charitable world to make charitable donations as easy as possible. Daffy stands for “A Fund Recommended for Your Donors,” which provides simplified access to donors’ funding (DAFS), a charitable tool that allows donors to receive initial donations and tax benefits and subsequently provide grants to their preferred charity.
DAF has long been a common philanthropist, but AI can change that. Duffy Recently an AI-driven feature was launched that helps its users discover reasons that are consistent with their values.
Adam Nash, founder and CEO of Daffy, told Observer earlier this month in New York. He added that leveraging new technology is like “having an unlimited number of assistants to help you”.
An app that can help people become more generous
Nash has extensive experience in Fintech, previously served as CEO of Fortune and served on the board of directors of Acorns. After raising a simple question in 2020, he turned his attention to philanthropy: Why is the concept of drilling into children through school curriculum and lessons from family and community members largely overlooked in adults?
“In FinTech, it’s all such a great technology for the last ten to 15 years, and it’s really shocking me to help people spend better and save better investments, but there’s not a good app that can help people provide better applications,” Nash said. “This field is known for being behind technology – it’s still a world of emails and PDFs and so on.”
Since its launch in 2020, Daffy has attracted more than 10,000 members who donated $40 million in 2024 and $30 million to about 6,700 charities, triple the increase from last year. The startup is backed by notable tech investors including Reid Hoffman, Dylan Field and Mike Schroepfer.
DAFS has been criticized for its use of wealthy donors, especially due to limited transparency requirements and delays in allocating funds to charities. “I think it’s a good thing that people always have a censorship on how money flows,” Nash said. “That being said, I think we have too high focus on the rich.” He added that he would “had hate the attention to seeing what billionaires are doing that affects a tool that could be valuable to tens of millions of people.”
That doesn't mean Duffy doesn't have wealthy members, the largest donation in 2024, is $1.5 million, and its accounts range from seven to eight numbers. But last year's median donation was only $100. The platform also offers entry barriers than most other DAF services, charging only $3 per month for most members.
How AI makes giving easier
Daffy's recent AI tools are designed to make DAF more accessible. One of the latest features of fast donation allows users to donate by typing or saying simple commands (such as “give $100 to my daughter’s school).
The tool draws on users’ application history to personalize and simplify the experience, aiming to remove friction caused by forms and administrative barriers. About 60% of people who donate on their first attempt to return, but rarely do so. “If you can't give in that moment, most of it will be lost,” Nash said.
Other AI-powered features include automatic thank you letters sent after donations, and Nash says repeated donations are encouraged. The technology can also help with surface information about charities that could otherwise be buried in difficult-to-access documents such as 990 forms, making it easier for users to make informed decisions.
