One of the payment processing options for your Bonterra software is Network for Good's Donor-Advised Fund, also known as the "DAF."
In order for an organization to be eligible to use the DAF as a payment processor, they must be listed under one of the "acceptable" tax statuses; these tax statuses are designated by the IRS, and can be identified through the IRS' Tax Exempt Organization Search Tool.
We may ask you to provide additional information on your organization's eligibility, based on certain official documentation.
NOTE: For organizations located in California, additional verification for eligibility is required. For more information on this process, please see our related guide.
Below, please find a list of "acceptable" documentation, as well as the various eligible statuses that are qualified by that documentation:
Acceptable Documentation for Proof of Eligibility
Verified/Good Standing on GuideStar
Network for Good's Donor-Advised Fund takes GuideStar as a valid "source of truth," meaning that if a nonprofit organizaiton is listed on GuideStar as "good" or "verifiable," the information can be used as truth and no further documentation should be required.
Pub 78 listing on the IRS website with the following "deductibility" code:
PC - A public charity
POF - A private operating foundation
GROUP - A parent nonprofit organization holding a "group exemption," whose child organization falls under their tax-exempt status
SO - A Type I, Type II, or Type III functionally integrated supporting organization
Letter of Determination (LoD) with the following tax statuses:
4940(d)(2) - Private operating foundation exempt from paying excise taxes or investment income
4942(j)(3) - Private Operating Foundation (Other)
170(b)(1)(A)(i) - Church
170(b)(1)(A)(ii) - School
170(b)(1)(A)(iii) - Hospital or medical research organizations
170(b)(1)(A)(iv) - Organizations which operate for the benefit of a college or university and is owned or operated by a governmental unit or the general public
170(b)(1)(A)(v) - Governmental Unit
170(b)(1)(A)(vi)/509(a)(1) - Organizations which receives a substantial part of its support from a governmental unit or the general republic
509(a)(2) - Organizations that receive a substantial part of its support from contributions, membership fees, and gross receipts from activities that further its exempt purpose
509(a)(3) Type I - Type I supporting organizations
509(a)(3) Type II - Type II supporting organizations
509(a)(3) Type III - Type III functionally integrated supporting organizations
Listing on a Parent Church's website
Official Catholic Directory (OCD)
Unfortunately, there are also certain tax statuses that are unable to use the DAF for donation processing. Below, please find a list of tax statuses that cannot be accepted to verify eligibility:
Documentation That CANNOT Be Used for Proof of Eligibility
IRS Business Master File (IBMF)
Pub78 listing on the IRS website with the following "deductibility" code:
SONFI - A Type III non-functionally integrated supporting organization
PF - Private foundation
UNKWN - An nonprofit organization whose status has not been determined
Letter of Determination (LoD) with the following tax statuses:
170(b)(1)(A)(ix) - Agricultural Research Organization
509(a)(4) - Organization organized and operated to test for public safety
509(a) - Private, non-operating foundation
509(a)(3) - Type III non-functionally integrated supporting organization
There are also additional statuses that require additional documentation, such as:
Additional Documentation for Proof of Eligibility Required
Pub 78 listing on the IRS website with the following "deductibility" code:
SOUNK - A supporting organization, unspecified type
Letter of Determination (LoD) with the following tax statuses:
509(a)(3) - A supporting organization, unspecified type