Donor FAQ
What is Endaoment?
Endaoment is a 501(c)(3) public charity that offers donor-advised funds (DAFs) and crypto 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
518KB
See our 1023 packet here:
Form 1023 Packet
518KB
Endaoment 1023 Packet
Why donate through Endaoment?
Endaoment allows you to donate crypto assets in their original token form. This has several benefits:
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The donated amount is equal to the fair market value of the donation (i.e., there is no tax on the sale).
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The potential tax deduction is equal to the market value of the donation - learn more about taxes and giving
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All actions occur onchain, 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 nonprofit 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 assets 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! The current version of our smart contracts were audited by blockchain security consultants LeastAuthority, and the initial version of our smart contracts were audited by blockchain research firm OpenZeppelin.
If you’re looking for our initial public audit report (V1), you can find that here.
What is a direct donation?
A direct donation is a gift made from your connected wallet on the organization‘s Endaoment Smart Contract. 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.
Can I donate to both US and International Organizations via Endaoment?
Yes! Endaoment natively supports donations and grants to all compliant US 501(c)(3) non-profits, and additionally supports over 3,500 international nonprofits in over 150 countries through a partnership with GlobalGiving.
Is there a minimum contribution?
There is no minimum donation or grant size, ever.
Do nonprofit recipients care if I’m using cryptocurrency?
We’ve got you covered. All grant recipients can choose to receive their awarded funds as US dollars via bank wire or as USDC via wallet transfer, whichever they prefer!
What currencies are accepted by Endaoment?
Endaoment accepts almost all ERC-20s and most non Ethereum tokens as well. Our smart contracts use Uniswap’s auto router to liquidate donations as USDC on Ethereum.
Can I give anonymously?
If you’d like to receive a tax receipt or open a DAF, no. (Issuing a tax receipt requires that we collect personal identifiable information.) Otherwise you are free to withhold personal information when distributing grants or donating directly.
What information is required to open a DAF at Endaoment or to receive a tax receipt?
In order to create an Endaoment donor-advised fund or receive a tax receipt for a donation, you’ll need to provide us with your first and last name, email address, and mailing address.
Can I withdraw from my DAF after funding it?
No. All Gifts are irrevocable and become the property of Endaoment upon donation.
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 as well as any potential deduction associated with any charitable gift.
How are donated funds held at Endaoment?
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.
Can I invest donated funds?
Yes. You can deploy philanthropic capital into any board-approved investment portfolios for a nominal fee, charged to the associated DAF. The USDC is programmatically exchanged for the asset in the portfolio (or vice-versa on portfolio exit) to allow exposure to specific pre-approved assets. All portfolios positions are associated with a nominal 0.25% entry fee and 0.25% quarterly fee based on Assets in Protocol (AiP), the total value of assets deployed into portfolios. There is no exit fee when moving funds from a portfolio position back into a fund.
What fees are involved in donating and grant making? How does Endaoment fund operations?
Endaoment charges 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! As noted above, there are additional fees associated with portfolio positions, but such investments are completely optional.
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.