All donations are made to the Nonprofit account in Better Giving as a single donation.
The nonprofit then sets the parameters for how the funds are used.
We offer three distinct pathways for donations.
Grants: Donations earmarked for ‘Grants’ are batched monthly and sent to the nonprofit bank account at the beginning of the following month the donation was received. For example a donation received on September 19th is sent to the bank account on October 1st.
Savings: Donations earmarked for ‘Savings’ are deployed in a Money Market account in partnership with Fidelity Investments. This is passively managed with an expected APY of 4-5%.
Investments: Donations earmarked for ‘Investments’ are deployed in our Sustainability Fund that historically attracted yield of about 20%. The Sustainability Fund is 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
Donations and the Better Giving Sustainability Fund
When a donor elects to support a nonprofit through a donation to the Better Giving, those funds are held in the Better Giving fund, and Better Giving grants out dividends to the nonprofit at the end of the month in which they are requested..
The nonprofit can also choose to direct percentages of the donations into either the savings or investment arms of the Fund and the goal of the Fund is to grow the principal large enough so that the nonprofit can cover its operating expenses from the dividends.
This picture shows how a nonprofit can choose to distribute the donations between these choices by either choosing one of our pre-set options, or creating their own distribution.
NOTE: The Sustainability Fund is a board-designated endowment owned and managed by Better Giving. Donors contributing to the Fund via a nonprofit donation page or embedded Better Giving donation form, recommend the qualified charitable organizations they wish their contribution to support. Better Giving will make grants from the Fund in accordance with the Better Giving terms and conditions.
Each quarter, 75% of the dividends are harvested and granted out to the nonprofit with the remaining 25% flowing back into the Fund so that the fund “grows and gives.”