Community Funds are similar to DAFs with all the same perks as well as tax-free status, but with a few key differences. Community Funds are open to the public - anyone can make donations into them the same way that anyone can create and fund their own DAF. Rather than an individual advising the fund, Community Funds are managed by Endaoment communities that collectively recommend non-profits to receive grants from that fund. In some cases, non-profit recipients are tailored by the fund managers toward a specific cause, while other funds rely on their community to generate lists of potential grant recipients.
On Endaoment's landing page, you can see Endaoment's featured Community Funds, curated by members of the Endaoment community. Popular funds include the Stand with Asians Community Fund, the Crypto Carbon Offset Community Fund and the SushiSwap Community Fund.
The Stand With Asians Community Fund is a product of the collaboration between Pplpleasr, Uniswap, Endaoment, and the team at Stand With Asians. When an individual donates to the SWA fund, the advising board for the fund makes a decision on which organizations should receive new grants. This fund requires grantees to provide a 3-month update on the impact grants received. Grants made from this fund all share a common theme in providing assistance to the AAPI community.
The Crypto Carbon Offset Fund is a collaboration between Endaoment and the US' three leading nonprofit carbon offset providers Carbonfund.org, The Cool Effect and The Bonneville Environmental Foundation, and is designed to equally distribute grants amongst the aforementioned non-profits, each of which would immediately use those funds to directly purchase carbon offsets.
The next progression of Endaoment's Community Funds is to become protocol managed; rather than a few individuals or community leaders recommending grants, Endaoment's Protocol Community Funds decentralize the management of the fund to the deliberation of the associated DAO.
The Rari Capital Foundation is the first true Protocol Community Fund and recently underwent its first decentralized grant recommendation. Governed by $RGT holders with deliberation taking place on Rari Capital's governance forum, the Rari DAO voted to make its first donation to Khan Academy.
The SushiSwap Community Fund was initialized through donations from core contributors at SushiSwap, however fund management and recommendations will likely transition to $SUSHI and SUSHIPOWA holders in the SushiSwap community, allowing them to take part in reccomending grant recipients.
Donor Advised Funds in the unique structure of Endaoment's Community Funds are unlike any philanthropic vehicle across the entire non-profit landscape. At Endaoment, we are very excited to continue to innovate our products, expand our offerings, and provide this service to our community.