How does Crypto for Charity work?
How does this work?
Your donation goes to our affiliated 501(c)(3) tax-exempt charity, FreeWill Impact Fund (EIN: 86-1218871) — that's where your tax receipt will come from. Then, your donation is automatically onverted/sold to USD and 100% of the net proceeds of your gift are distributed to the nonprofit or cause you chose (subject to applicable grantmaking policies).
How are donations processed?
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)
How can there be 0 fees?
No catch! We feel having no transaction fees is important in order to create a thriving crypto-giving platform. Taking a fee out of donations would also go against the promise of crypto eliminating fees by 3rd parties.
Nonprofits who want advanced features like custom donation widgets, fundraising insights, and assistance with their fundraising strategy pay us for those services.
What is the contribution to FreeWill Impact Fund used for?
You may add an optional tip to your donation. This supports our efforts to help nonprofit organizations benefit from the generosity of crypto donors and the increase in digital philanthropy, as well as improving the functionality and overall experience of Crypto for Charity.
FreeWill Impact Fund is a 501(c)(3) tax-exempt public charity, through which all crypto donations are received, with the net proceeds granted to high-impact nonprofit organizations, subject to applicable grantmaking policies. When you support FreeWill Impact Fund, you’re helping us build new relationships with nonprofits looking for an introduction to the world of crypto philanthropy. You'll also support the R&D efforts of Crypto for Charity in the fast-changing world of web3.
Blockchain transaction fees
While we don't take any fees out of the donations, donors are responsible for covering blockchain network transaction fees. Note that we support many blockchains with low transaction fees.
What will be the dollar value of the donation?
The value of your donation will be indicated in the tax receipt and will correspond to the exchange rate at the moment we converted your gift to USD. This usually happens within 10 minutes of receiving your gift, and this is when the tax receipt is sent.
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 tool. All crypto donations made through the platform initially go to FreeWill Impact Fund, which will make a 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 for some reason you want your nonprofit removed from our database.
When will the nonprofit receive the proceeds?
In most cases, we notify nonprofits of the incoming gifts and initiate an ACH transfer of the proceeds within 1-2 business days for any gifts 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 two weeks of the gift's initial receipt. Sometimes, however, this may not be possible. For example, the organization's mailing address may have changed, or the organization does not claim 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.
Can nonprofits provide thank-you gifts (or services) to crypto donors?
No. To ensure that gift receipts provided by FreeWill Impact Fund accurately reflect the deductible value of the charitable contributions, nonprofits should not provide donors with thank-you gifts of valuable goods or services.