Granting out of a Donor-Advised Fund (DAF) Guide
Welcome to the Granting out of a Donor-Advised Fund (DAF) Guide. This document will walk you through the process of granting out of a Donor-Advised Fund (DAF) on the Endaoment platform. We will be creating a simple granting flow that will allow users to grant out of a Donor-Advised Fund (DAF) on the Endaoment platform. This guide will cover adding a grant form to your frontend, preparing a grant URL, and processing the grant.What is a Grant?
A grant on the Endaoment platform occurs when a user distributes funds from their Donor-Advised Fund (DAF) to an eligible nonprofit organization. When a user makes a grant:- The funds are transferred from their DAF balance to the selected organization
- The grant is not tax deductible, since the tax benefit was already received when the initial donation was made to fund the DAF
- The organization receives the granted amount in USDC (a stablecoin pegged to USD)
- The grant must be approved by Endaoment to ensure it complies with charitable giving regulations
Prerequisites
Before you begin, ensure your application is capable of the following flows:- Logging in a user as users must be authenticated to grant out of a DAF
- Creating a DAF as you will need to select a DAF to grant out of
- Searching for organizations as you will need to select an organization to grant to
- Donating to a DAF as you will need to have funds available in the DAF to grant out
Flow Overview
Step-by-Step Instructions
1. Select DAF to grant out of
Similar to the process of donating to a DAF, you will need to select a DAF to grant out of. This can be done by fetching a list of DAFs the user has access to and allowing them to select one. If you have not already implemented this, you can follow the Set Up Fund Selection step in the Donate to a DAF Guide.2. Select organization to grant to
Identical to the process of searching for organizations, you will need to allow the user to search for an organization to grant to. This can be done by fetching a list of organizations and allowing the user to search for the organization they wish to grant to. If you have not already implemented this, you can follow the Set Up Organization Search step in the Search for Organizations Guide. The difference here is that rather than simply listing the results, you will need to allow the user to select an organization to grant to.3. Set up the grant form
Now that the user has selected a DAF to grant out of and an organization to grant to, you can set up the grant form. This form will allow the user to specify the amount they would like to grant and the purpose of the grant.4. Orchestrate the grant request
Similar to the process in donating to a DAF, you will need to send a grant request to the Endaoment API. This can be done by sending a POST request to a/grant
endpoint on your backend with the necessary information and proxying to Endaoment.
The following code snippet, taken from the backend/routes/grant.ts file in the quickstart example, demonstrates how to call the API: