How does Crypto for Charity work?
How are donations processed?
Donors are provided a dedicated one-time donation address after filling out and submitting the gift details form.
To ensure automated processing and accurate gift receipts, donors should only send a single transaction to the donation wallet address. Subsequent transactions won't be automtatically processed, requiring manual intervention and causing possible delays.
If a donor wants to make a small "test" gift first using the donation wallet address, a new address should be generated for the remaining amount by repeating the gift flow.
Crypto assets donated through the Crypto for Charity platform are initially received by our affiliated 501(c)(3) tax-exempt nonprofit, FreeWill Impact Fund, which maintains cryptocurrency exchange accounts with Coinbase and Gemini. See more info about our infrastructure here: https://support.cryptoforcharity.io/article/149-security.
FreeWill Impact Fund provides donors with a tax receipt for their donation, sells the donated cryptocurrency to USD, and passes the net cash proceeds on to the ultimate nonprofit beneficiary organization (subject to our grantmaking policies and procedures)
Why doesn't the donated crypto go directly to the nonprofit?
We built our solution so that nonprofits don't have to worry about transacting with crypto since many nonprofits don't want the additional overhead of maintaining crypto wallets and exchange accounts.
In the future when most nonprofits will most likely become more comfortable with crypto transactions and prefer to hold the donated crypto, we will adjust our solution accordingly.
How can there be 0 fees?
Crypto for Charity is basically a "free tier" of a more comprehensive suite of fundraising products, which many nonprofits pay for. See FreeWill's Smart Giving Suite for more info.
Blockchain transaction fees
Senders (donors) are always responsible for covering the transaction fees of the blockchain network.
What will be the dollar value of the donation?
According to the IRS, it is up to the donor to determine the value of their gift. Some donors use the asset's average market value on the day it was sent as its value. For more information on how to assess the value of your donation, please see the IRS guidelines for determining the value of donated property.
Supported charities
Donors can recommend that a grant be made to more than 55,000 501(c)(3) nonprofit organizations based in the United States using our platform. All crypto donations made through the platform initially go to FreeWill Impact Fund, which will make a cash grant to the charity donors designate.
If your nonprofit is not on the list, let us know, and we should be able to add it!
Also, let us know if you want your nonprofit modified or removed from our database for any reason.
When will the nonprofit receive the proceeds?
In most cases, we notify nonprofits of incoming gifts and initiate an ACH transfer of the proceeds within 1-2 business days once a $100 gift threshold is reached. If the gifts are less than $100, then the notifications and transfers go out monthly.
What if we're unable to send a gift to a given nonprofit organization?
FreeWill Impact Fund typically directs gift proceeds to nonprofit organizations within 2 weeks of receipt. Sometimes, however, this may not be possible. For example, the organization's mailing address may have changed, or they may not have claimed the check we've sent them. Other times, a nonprofit organization may have lost its tax-exempt status, which prevents us from distributing funds to it. In these cases, we will work to resolve these complications for up to 12 months from the date of the original donation.
If our efforts are ultimately unsuccessful, the proceeds will be redirected to our High Impact Fund for maximum impact.