For the Givepact Charitable Foundation, a partner of the Givepact crypto donation platform, philanthropy is not a one-time act, but a long-term commitment to creating a positive impact on the world. Products and services that support philanthropic efforts demand the utmost attention to efficiency, transparency, and trust. As part of our mission to help crypto holders set up donor-advised funds, we are dedicated to an optimized experience. To achieve this, we realized we needed to engage with the right exchange and custodial partner. We found that partner in sFOX.
Before we delve into the features that brought us to sFOX, let’s take a moment to understand what a donor-advised fund is, particularly in the context of crypto. A donor-advised fund (DAF) is a philanthropic vehicle that allows donors to contribute to their favorite causes over time. Crypto holders, who wish to use their digital assets for good, can deposit their tokens into a DAF and get an immediate tax benefit for the USD value. The funds can remain invested, and grow tax-free, until the donor advises the fund to make a grant to a nonprofit organization.
Donor-advised funds provide an efficient and tax-effective method for crypto holders to give back, and at a higher level, align the growth of crypto with our ability to give back. It’s no wonder why since 2017, the number of donor-advised funds in the United States has grown 29% year-over-year with an average balance of $182,000 per account.
Now, let’s explore why we chose to partner with sFOX for our donor-advised fund product.
Separately Managed Accounts for Donor-Advised Funds
At the heart of our decision to collaborate with sFOX is the ability to offer separately managed accounts for donor-advised funds. These separately managed accounts, an important aspect of our donor-advised fund model, allow our donors to maintain a distinct and separated allocation of their charitable funds. This setup guarantees the strictest level of transparency, keeping each donor’s funds separate while offering a clear overview of their fund balance.
We can also give donors access to the account to deposit and trade, but not withdraw. This is critical because contributions to donor-advised funds are irrevocable.
Broad Token Support
In the spirit of embracing the versatility and inclusivity of the crypto space, we needed a partner that would support a wide array of cryptocurrencies. sFOX surpassed our expectations by supporting over 30 of the most popular tokens. This broad range of token support empowers our donors to contribute using their preferred cryptocurrencies, making donating crypto as seamless and inclusive as possible.
A Regulated Wyoming Trust Company
Trust is an essential factor when dealing with crypto, and more so when it comes to charitable giving. With sFOX being a regulated Wyoming trust company, our donors can rest easy knowing their funds are securely held and managed. This regulated status adds an extra layer of accountability and reassures our donors that their contributions are in safe hands.
Free Custody Up to $250,000
The free custody benefit offered by sFOX for up to $250,000 is an assurance to our donors that we place the security of their account at the heart of our operations. This offer also keeps our expenses as low as possible, so that donors can allocate more funds to the causes they care about.
API for Enhanced Functionality
The versatility of sFOX’s system is further highlighted by its comprehensive API. This provides us with the tools necessary to create features that offer our donors a smooth experience that is unique to DAFs. Features like automated tax receipts and admin fee withdrawals can be quickly developed and seamlessly integrated into our system, ensuring a hassle-free donation process and back-end fund administration.
Deep Liquidity
The cryptocurrency market can be volatile, and we needed a partner that could weather those fluctuations. With sFOX’s deep liquidity, we are ensured of constant, stable, and swift transactions, enabling our donors to maximize their giving potential.
Our partnership with sFOX is a cornerstone of our mission to bring charitable giving to the modern age. Their innovative solutions not only align with our values but also significantly enhance the experience for our donors. With sFOX, we are confident that we can provide an efficient, transparent, and impactful platform for donor-advised funds in the crypto age.
