The GoodCoin Foundation holds and manages Donor-advised Funds. Donors can make a donation to The GoodCoin Foundation and then advise us on which charity those funds should support. Donor-advised Funds are the fastest growing charitable giving option in the United States because they provide an immediate tax deduction while providing the flexibility to explore, study, and decide on where that pool of funds should ultimately go. The Board of the GoodCoin Foundation helps by doing the due diligence necessary to make sure the funds go to support legitimate community-based organizations addressing causes the donor cares about.
Can I give to a Donor-advised Fund at The GoodCoin Foundation?
Yes. Contact us via the contact link at the top of this page.
Can I direct funds to any cause I want?
Yes, usually. The cause needs to be truly charitable as defined by the United States Internal Revenue Service. It needs to be overseen by a Board, provide services that are broadly beneficial, and be organized as a non-profit organization. In the United States that means it has been determined by the Internal Revenue Service to be a 501(c)(3) organization. You can check if your favorite charity qualifies on www.guidestar.org. For organizations operating outside the United States it is a bit more complicated but follows the same general guidelines. Usually, the Board of The GoodCoin Foundation has no trouble taking advice. In very rare circumstances they block a funding request and will ask you to make another suggestion.
Direct donations to The GoodCoin Foundation, once accepted by the Board, are fully tax-deductible in the United States and in many other countries. When you give to The GoodCoin Foundation we create a Donor-advised Fund for you. We make distributions from your fund to charities of your choice (see Grantee Section, below). We issue an electronic receipt to you for your donation that can be used for tax purposes.
Do I get a tax deduction when I use GoodCoins?
Generally no. If you send funds to the GoodCoin Foundation you get an electronic receipt that can be used to lower your taxes. If someone else gives you GoodCoins or someone allows you to offer advice on where GoodCoins go (for example, as a recipient of a loyalty program) you do not get a tax deduction because that "someone" has probably already gotten a tax deduction.
The GoodCoin Foundation is restricted by law to funding only organizations with broad societal benefit. While the definition of "broad societal benefit" is up for interpretation, it is clearly NOT funding terrorism, organizations that run afoul of the law in their jurisdiction, and organizations that are not widely supported. The GoodCoin Foundation scours public records to determine if a proposed charitably-inclined organization is legitimate, searches social media postings for clues, and contacts representatives of prospective grantees for additional information, if needed.
So in one sense, we do not pick causes — you do. If they are seen as doing good in their community by you and your neighbors we will fund them.
And, So how does The GoodCoin Foundation support itself?
We encourage businesses to use GoodCoins and to allow their customers to guide corporate giving. We aim for 100% of each customer-directed donation going to the charity the customer identifies by encouraging businesses to pay all processing fees. While we have the lowest fees in the industry (subsidized by generous donors) there are costs to moving money, paying accountants, buying stamps, etc. Even so, in the last year 99.5% of our revenue was earmarked for grantmaking, the remainder for administration. Not yet 100%, but we are getting close!