The Better Giving Sustainability Fund (“Fund”) is a board-designated endowment established, owned, and managed by Better Giving for the specific purpose of supporting grantee nonprofit organizations with perpetual funding streams.
Donors making contributions to the Fund in support of a qualified nonprofit can improve cash flow predictability and be a long-term funding source.
Return on invested capital is periodically withdrawn and granted as dividends to fund nonprofit operations and create impact. Nonprofits have control over where they wish the funds to end up -either directly sent to the bank, added to the savings account or added to the investment account.
We offer three distinct pathways for donations, one of which flows into the Sustainability Fund.
Donations earmarked for ‘Grants’ are batched monthly and sent to your provided bank account at the beginning of the following month the donation was received. For example a donation received on September 19th will be sent to your bank account on October 1st.
Donations earmarked for ‘Savings’ account are deployed in a Money Market account in partnership with Fidelity Investments. This is passively managed with an expected APY of about 3%.
Donations earmarked for ‘Investment’ Sustainability Fund. The Sustainability Fund is actively managed by our Investment Committee with a team of expert investment advisors. We currently offer one Fund option that comprises (50%) Domestic and International Equities (30%) Fixed income, (15%) Bitcoin and Ethereum (5%) cash. The fund is rebalanced monthly. We will also be introducing risk and theme based investment options in the future to provide more options to nonprofits!
Better Giving Sustainability Fund investment profile (June 2024)
Unlike traditional endowment funds held by nonprofit organizations, which can be expensive and complex for them to maintain, receiving funding from Better Giving's Sustainability Fund comes at no upfront cost to qualified nonprofits, with no minimums and Better Giving just takes a small fee for managing the fund.
NOTE: The Sustainability Fund is owned and managed by Better Giving. Donors contributing to the Fund via a nonprofit donation page or embedded donation form, may recommend qualified nonprofit organizations they wish their contribution to support. Better Giving will make grants from the Fund in accordance with the Better Giving terms and conditions.
This makes accounting for the nonprofit much easier, as they need only report contributions from a single grantor as opposed to potentially hundreds of separate donors.
Any donations made into the Sustainability Fund are owned and controlled by Better Giving until granted out to recipient nonprofit organizations.
For further information about why an endowment through the sustainability fund is a good idea, take a read here.