While the crowdfunding and fundraising landscape has boomed in the last few years, the core benefits, typically, don’t extend beyond the soliciting party—in other words, the person or organization with the fundraising goals reaps 100% of the benefits of the individual campaign. Sure, donors may receive a hearty thank you for their contribution or, in some cases, a gift or token of appreciation tied to the cause at hand. But, a the end of the day, unless prospective supporters have a deep personal connection to the people, the organization, the campaign or the desired end result, there’s no tangible benefit—and that means funds left on the table, with each and every initiative.
More than 95% of American households give to charity each year, with the average family donating close to $3,000 and nearly $350 billion given, in total. Compare that with even the most successful crowdsourcing sites which, at best, are generating hundreds of millions in annual revenue, and it’s clear these online altruism platforms have some serious ground to make up.
So where’s the disconnect? For many, it could be the tax implications of charitable donations versus crowdfunded contributions. Give to the American Cancer Society and you’ll get an instant, 100% tax write off come April 15th. Give to a school fundraising in support of a classmate’s cancer diagnosis and you’ll, no doubt, feel good about helping make a difference. But you won’t get the tax deduction. Unfortunately, with families’ budgets stretched to the limits more than ever, sometimes the choice comes down to doing the most good with the least amount of resources—and, in those instances, the ACS gift will often win out.
Seeing the need on both sides—the need for individuals and small, non-corporate groups to raise funds, and the need for donors to generate a tangible, financial benefits as a result—DirectlyTo launched with a unique capability no other crowdfunding site offers: tax deductions to donors. For those giving to a charitable or DirectlyTo approved cause on DirectlyTo, 100% of your gift is deductible. This represents a major marketplace shift that, no doubt, will help boost individual contributions and, with it, the ability for anyone to generate funds for a cause they believe in.
Another benefit to DirectlyTo’s tax deduction initiative? There’s now a reason for donors without a personal connection to give to a great cause. By giving on DirectlyTo, you’ll get the same tax benefits as giving to an established charity or non-profit, providing an even greater incentive to expand your donation circle and find the best possible causes for your gifts—starting right now!
When you run a crowdsourcing site, there’s a serious cost to doing business. From our team to our technology, it’s easy to see why fundraising and crowdfunding sites—DirectlyTo included—collect a nominal 4.5% fee from funds raised to, essentially, keep the lights on. But we’ve decided to do something revolutionary. We’ve decided to channel a portion of the 4.5% fees collected on every charitable or non-profit-based initiative back into those same vital causes.
That 4.5% can really do a lot of good, too. The average crowdfunded campaign right now hovers around $7,000. If used for a non-profit that’s $315 DirectlyTo will donate back to Habitat for Humanity or American Cancer Society. Launching something a little bigger? Then the donation will be, too! That 4.5% adds up fast: $450 on a $10,000 campaign, $900 on a $20,000 campaign, $4,500 on a $100,000 campaign…the sky’s the limit!
Why are we making this commitment? Because, when we started DirectlyTo, our goal was to support real, meaningful change from coast to coast, and around the globe. And that remains our #1 goal—and we’re putting our money where our mouth is. If yours isn’t going to an established charity we’ll collect the 4.5% and funnel it back into other great sources, including DirectlyTo’s upcoming initiatives and other top tier charitable programs we support. And, of course, no matter your project, we’ll be with you every step of the way, making sure you have the tools you need to succeed.
We’re proud to be the only fundraising or crowdsourcing site making this kind of commitment to our users—and we’re doing it because we believe in you and what’s important right now. Think about the charities you believe in and start mapping out the steps to achieve your goals. And when you’re ready, DirectlyTo will be here to help you every step of the way—all the way through to that 4.5% charitable donation at the end!