How much of the donations are received by the nonprofits?
For brand partners on our Emerging and Scaling plans, 100% of the donations are received by the nonprofits.
For brand partners on our free Entrepreneur plan, at least 90% (minus minimal credit card fees) of the donation is received by the nonprofit. You have the option to elect to cover the administrative and technical costs so that 100% of the funds received go to charity. The cost to cover those fees is typically 10% plus 2.75% -- roughly 13% of the donation total. (Our fee is 10% plus Stripe fees on top of that.) Please contact firstname.lastname@example.org if you'd like to cover fees so that nonprofits receive 100% of donations.
How do nonprofits receive donations that come through DailyKarma?
Donations are sent through The DailyKarma Foundation. DailyKarma partners with The DailyKarma Foundation, a nonprofit 501(c)(3) (EIN 47-5570019), to process payments to charities. The DailyKarma Foundation holds a Donor-advised Fund that is pre-loaded by DailyKarma so that when transactions are tallied, funds can be distributed within 30 days. The DailyKarma Foundation and DailyKarma comply with all Commercial Co-Venture and Professional Fundraiser rules and regulations as required in various States depending on the scope and structure of your campaign.
The DailyKarma Foundation will mail the nonprofit a check or an electronic payment (direct deposit). To receive donations through DailyKarma via The DailyKarma Foundation as a charity, you must be a 501(c)3 in good standing, opt into online giving and third-party data sharing with Guidestar, have an accurate business address in Guidestar, and not be a non-operating private foundation.
What can I tell the nonprofit I'm supporting about how they will receive the contribution and how to expect it?
Donations are tallied on the 3rd business day of every month. Your credit card on file in the Shop for Good dashboard will be billed for the amount fundraised in the previous month. After that, it takes 1-2 weeks before our nonprofit processor The DailyKarma Foundation processes the payment to your selected charity via check. It's typically 30-45 days between when we collect donations from a brand and when funds are received by your selected nonprofit. If you'd like to have a direct deposit made to the charity instead, please have the charity email its:
- Bank name
- Routing number
- Account number
to email@example.com and we can get that moving.
How does a nonprofit know the donations I raised to support it are coming from my business?
Donations are tallied on the 3rd business day of every month. Your credit card on file will be billed for the amount fundraised in the previous month. After that, it takes 1-2 weeks before our nonprofit processor The DailyKarma Foundation processes the payment to your selected nonprofit via check. If you'd like to have a direct deposit made to the charity, you can let us know (see above) and we can get that going.
Once we collect donations for the month and send them to our donation processor The DailyKarma Foundation the foundation processes the donations and sends the amount to the charity together with a cover letter. The cover letter indicates the amount raised and, for our stores on all our plans, the name(s) of the company that raised the money appears in the letter too.
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