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Donor FAQ

What is Endaoment?

Endaoment is a new public charity that offers Donor-Advised Funds (DAFs) built atop the Ethereum blockchain, allowing you to donate crypto to almost any US nonprofit 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

Has Endaoment undergone a Security Audit?

Yes. Our smart contracts were audited by industry leading blockchain research firm OpenZeppelin.
Read OpenZeppelin's contract audit report: Public Report

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.

Why donate through Endaoment?

Endaoment DAFs lets you donate crypto assets in their original token form.
Donating cryptocurrency in original form has two important benefits:
1) The granted amount is equal to the present market value of the donation (i.e. you don't need to sell the asset, pay tax on the sale, then donate the proceeds, you can instead donate the entire asset) 2) The tax deduction could be equal to the market value of the donation
Imagine that Anonymous Alex has $25,000 of Ether. Let's assume they purchased 100 ETH initially at $100 ($10,000 total) and that the federal long term capital gains rate is 25%.
If Alex were to sell their ETH and then donate the proceeds, they would potentially pay $3,750 in taxes (on the $15,000 gain) making the final grantable amount $21,250. But if Alex were to donate the long-term-held Ether directly to a DAF, they'd potentially pay $0 in taxes and their grantable balance would be $25,000.
Still don't quite understand the tax deduction? Read this post by CoinTracker.

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.

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 of as USDC via Ethereum wallet transfer.
Organizations can choose to provide their own Ethereum Wallet to receive the USDC, or they can choose to provide US Bank Account details for direct deposit withdrawals provided via Circle. Aside from the form of currency they will receive, the only difference is that the direct deposit will require a small wire transfer fee (~$25), which will be deducted from the grant.

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
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]

Is there an option for recurring deposits?

At this time, no, you will need to make each deposit independently.

What is the spend down policy once my DAF is funded?

At this time, there is no spend down policy on funded DAFs.

Can I give anonymously?

No. At this time, only the Primary Advisor of a Fund may make donations. In order to create a Fund, you'll need to provide your name, email, and a US mailing address.
Learn more about how we protect and secure your data: Personal Data Usage & Storage

Who can 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 a 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 IRA guidance.

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

Endaoment does not offer tax advice. Please consider working with a CPA or attorney to address your questions related to your tax burden.

How are donated funds held at Endaoment? Is there a possibility that they fluctuate in value after I've made a contribution?

While traditional DAFs invest your assets, causing your account to increase or decrease in value, Endaoment is based on a model that focuses on throughput and decreased cost where your funds will remain stable.
Once you make a donation to Endaoment using one of the cryptocurrencies we accept, we will immediately exchange those tokens for USDC in order for your assets to maintain a consistent value regardless of your granting timeline.

What are the fees associated with my Endaoment DAF?

Due to Endaoment's low overhead cost, Endaoment charges lower than average fees on DAF accounts, a 0.5% inbound fee on DAF contributions, and a 1.0% outbound fee on DAF Grants for a maximum fee of 1.5% on dollars that have completed their journey from donor to DAF to nonprofit organization
Learn more about Endaoment's fees & model: Fee Schedule & Comparison

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

At the moment, there is no strict time restraint on how long you can hold funds in your DAF. That being said (and as we note a few lines above) a donation to your DAF is irrevocable, so at some point you will need to recommend a grant to an organization - no rush though, make sure you pick the organization that you want to support!
Read about inactive funds in the Fund Agreement section to learn more
Last modified 3d ago