With DirectlyTo, everyone wins!
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!