Donor FAQ

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Donor FAQ

What is Endaoment?
​Endaoment is a public charity that offers Donor-Advised Funds (DAFs) and Direct Donations to Nonprofits on the Ethereum blockchain. Our platform allows you to donate virtually any crypto asset to nearly any US 501(c)(3) organization.
Is Endaoment a Legitimate Nonprofit?
Yes. Endaoment is a California-based Public Charity and Nonprofit Public Benefit Corporation, federally tax-exempt under IRS Rev. Code Sec 501(c)(3). Our EIN is 84-4661797.
See our IRS determination letter here:
irs-determination-letter-endaoment.pdf
518KB
PDF
Endaoment IRS Determination
See our 1023 packet here:
Form 1023 Packet - Endaoment.pdf
10MB
PDF
Endaoment 1023 Packet
Why donate through Endaoment?
Endaoment allows you to donate crypto assets in their original token form. This has several benefits:
1.The granted amount is equal to the fair market value of the donation (i.e., there is no tax on the sale).
2.The potential tax deduction is equal to the market value of the donation - learn more about taxes and giving​
3.All actions occur on-chain, and are publicly verifiable using a blockchain explorer like Etherscan.
Imagine that Anonymous Alex has $25,000 of Ether. Let's assume they purchased 10 ETH initially at $1,000 ($10,000 total), and that the federal long term capital gains rate is 25%.
If Alex were to sell their 10 ETH worth $25,000 and then donate the proceeds, they would pay ~$3,750 in taxes (on the $15,000 gain) making the final grantable amount and taxable deduction $21,250.
However, if Alex were to donate their long-term-held Ether using Endaoment, they'd pay $0 in taxes and their grantable amount and taxable deduction would be $25,000.
What is, and why use, a Donor-Advised Fund?
A Donor-Advised Fund (DAF) is a charitable account for making grants to non profit recipients.
You add funds to a DAF by irrevocably donating securities or property, without having to sell the donation for cash first. We take care of selling your contribution after you've donated.
As a result, DAFs are unique in that they let you donate property in its original form.
Has Endaoment undergone a Security Audit?
Yes. All our smart contracts have been audited by world-renowned blockchain research firm OpenZeppelin.
Read OpenZeppelin's contract audit report: Public Report​
What is a Direct Donation?
A Direct Donation is a gift made from your connected wallet on the organization‘s Endaoment profile. Direct Donations function just like donations made elsewhere on the Endaoment app, you select the asset and amount, and we send you a tax receipt if requested. Direct Donations do however bypass the need to create and fund a DAF, allowing users to send their assets to an organization of their choice in a single transaction. Please note that all directly donated gifts are unrestricted - if you'd like to place a restriction of the use of your gift by the receiving nonprofit, you will need to open a DAF and recommend a grant from there.
Is there a minimum contribution?
DAFs do not need to maintain a minimum balance. However, you will have to cover cost of creating a Fund contract on-chain. The minimum donation into any DAF, Community Fund, or made directly is $500. Any grant made from a Fund also has a minimum of $500.
Do nonprofits receiving my grants care if I'm using cryptocurrency?
We've got you covered. All grant recipients receive their awarded funds as US dollars via bank wire or as USDC via Ethereum wallet transfer - their choice.
What currencies are accepted by Endaoment?
Endaoment DAFs use Uniswap to liquidate donations. We accept most tokens with a Uniswap exchange contract, listed below.
ETH, WETH, DAI, USDC, MKR, HEX, SNX, PNK, sETH, UBT, LINK, BAT, WBTC, REP, KNC, RPL, NMR, ANJ, sUSD, imBTC, CNCC, LEND, TKN, ANT, BAND, JRT, XIO, UMA, TUSD, ZRX, REN, CBIX7, LRC, GNO, eINV, ESH, DZAR, SPANK, BUIDL, cDAI, CEL, RLC, BNT, RING, MLN, RCN, NEXO, AMPL, HXY, BLT, DATA, SNT, AUC, RDN, GEN, DIP, MANA, FUN, XCHF, OXT, LPT, HOT, DGX, DGD, RSR, LOOM, ENJ, FOAM, PAXG, TMV, GRID, XOR, AMN, SHIP, CMRA, SHUF, FXC, CMME, 0xBTC, DXD, pBTC, ULT, CHAI, RAISE, STA, VETH, AST, STAKE, LQD, SOCKS, PAN, aDAI, GST2, MET, MCX, VXV, MI, COT, ISLA, SALT, KEY, STORJ, TNT, TRST, DONUT, HEDG, MATIC, OCEAN, 1UP, USDx, PYRO, LEV, EBASE, ocDai, DRGN, C20, FTX, ENG, iDAI, cUSDC, CBI, FRM
Looking to donate an asset not listed here? We accept other digital assets over the counter.
NOTE: Large donations may be subject to price slippage, depending on available liquidity. If you are concerned, please feel free to reach us at [email protected]​
Can I give anonymously?
If donating to a DAF, no. In order to create a Fund, you'll need to provide your name, email, and a US mailing address. (At this time, only the Primary Advisor of a Fund may make donations.) When recommending grants to nonprofits, however, you may choose to withhold your personal information.
If you are donating directly, yes. You may choose to give anonymously, only if you choose not to receive a tax receipt. (Issuing one requires we collect personal identifiable information about you.)
Learn more about how we protect and secure your data: Personal Data Usage & Storage​
What information is required to open a DAF at Endaoment?
In order to create an Endaoment Donor-Advised Fund, you'll need to provide us with your name, email address, and US mailing address.
Can I withdraw from my DAF after funding it?
No. Gifts to DAFs are irrevocable and become the property of Endaoment upon donation. This is an IRS requirement on how DAFs must operate and is only subject to change based on IRS guidance.
Does Endaoment offer tax advice regarding charitable donations from my DAF?
Endaoment does not offer tax advice. You should speak with a CPA or attorney to address your questions related to your tax burden.
How are donated funds held at Endaoment?
While traditional DAFs invest your assets, causing your account to fluctuate in value, Endaoment is based on a model that focuses on throughput and decreased cost.
Once you make a donation to Endaoment using one of the cryptocurrencies we accept, we will programmatically exchange those tokens for USDC in order for your assets to maintain a consistent value regardless of your granting timeline.
What fees are involved? How does Endaoment fund operations?
Endaoment charges extra low fees, 0.5% on donations, and 1.0% on outbound on grants, with no annual or recurring fees. 1.5% - that‘s it, once! We're also generously funded by donors like you!
How long can I keep USDC in my DAF before I have to grant it to an organization?
If a Fund shows no activity (grants or contributions) for one year or more, Endaoment will attempt to contact the Primary Advisor(s), other Fund Advisor(s), and/or any Interested Parties. If the Fund remains inactive for another year after this notification, and the Fund is inactive for a total of two years, the Fund may be closed and the Fund assets may be distributed according to our Fund Agreement.

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Outline

What is Endaoment?

Is Endaoment a Legitimate Nonprofit?

Why donate through Endaoment?

What is, and why use, a Donor-Advised Fund?

Has Endaoment undergone a Security Audit?

What is a Direct Donation?

Is there a minimum contribution?

Do nonprofits receiving my grants care if I'm using cryptocurrency?

What currencies are accepted by Endaoment?

Can I give anonymously?

What information is required to open a DAF at Endaoment?

Can I withdraw from my DAF after funding it?

Does Endaoment offer tax advice regarding charitable donations from my DAF?

How are donated funds held at Endaoment?

What fees are involved? How does Endaoment fund operations?

How long can I keep USDC in my DAF before I have to grant it to an organization?