1. What happens when someone donates or a nonprofit sends funds to Better Giving?
When you transfer funds to Better Giving, either by a nonprofit or by a donor donating:
The funds are legally granted to Better Giving (via the nonprofit).
This means Better Giving becomes the legal owner of the funds while they are held.
Although our Terms & Conditions ensure the funds remain aligned with your intended use, you are not considered to have legal control over them during this period.
2. Do you need to report these funds while they are held?
No.
While the funds are held by Better Giving, they are:
Recorded only on Better Giving’s books
Not recorded by your organisation
From an accounting perspective, there is nothing for you to report during this time.
3. What happens when you request the funds back?
When you request your funds:
Better Giving grants the funds back to your organisation
At this point, you should:
Record the funds as income (grant or donation)
Treat them like any other contribution received
4. How should a nonprofit account for these funds?
A nonprofit should:
Not record the funds while they are held by Better Giving
Only recognise them once they are granted back
This is because:
The organisation does not have legal control over the funds while they are held
Therefore, they should not appear on its books during that period
Key Takeaway
While held by Better Giving → No reporting required by your organisation
When granted back to you → Record as a standard contribution
If you’re unsure how to reflect this in your accounts, we recommend speaking with your accountant or financial advisor.