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 are fully tax-deductible in the United States and in many other countries. When you give to us 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.
You may also purchase GoodCoins and give them to others. It is a nice way to give the gift of giving to mark a special occasion or meaningful life event.
GoodCoins are a digital way making charitable gifts. Many currencies can be exchanged for GoodCoins but GoodCoins can only be spent on doing good. The Board of the GoodCoin Foundation makes sure that each GoodCoin ends up supporting only rigorously vetted and approved organizations that meet their local community's standards of "good works."
Do I get a tax deduction when I use GoodCoins?
Generally no. If you send funds to the GoodCoin Foundation to purchase GoodCoins you get an electronic receipt that can be used to lower your taxes. If someone else gives you GoodCoins or allows you to advise them on where GoodCoins go 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 to go to the charity the customer identifies. For direct donations, those not using GoodCoins, we keep our administrative costs low. We have negotiated the lowest payment processing fees in the industry. One measure of our success is that currently 97.4% of all funds received by the GoodCoin Foundation go out to other causes and nonprofits. That tiny sliver of 2.6% funds our research, charity engagement, negotiations with businesses, as well as mission-critical things like paying $216 a year for this cool website.