We anticipate that people might need a little help with our terminology. For instance, what is the difference between a contribution and a grant? Hopefully this will steer you in the right direction. If not, feel free to reach out!
A contribution is the charitable donation of cash or other assets to B Charitable. You can make a contribution to your Charitable Giving Fund or to a Charitable Crowdfunding Campaign started by someone else. Contributions are tax-deductible to the contributor at the time of the contribution. This means that you can make a contribution today and receive a tax deduction now. Your fund can grow tax-free, and, at a time that will make the most impact, you can request a grant of those funds to the public charity of your choice.
As we learned in FAQ Blog #1, according to the IRS, “[o]nce the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor’s representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account.” A donor exercises these advisory privileges over the distribution of funds through a grant request. With just a few clicks, you can request a grant to any public charity recognized by the IRS and listed in their database. B Charitable will then review the grant request and, once the request is approved, B Charitable will honor it and make a grant to the charity. The process is that easy. Currently, B Charitable sends out grants in large batches twice a month.
What if the charity you want to support isn’t in the database? There are certain charities, like churches, that are not required to register with the IRS, but are still eligible for distributions from your Charitable Giving Fund. If you cannot find the charity you are looking for, you can request a new charity at the bottom of the Search page. Once we verify that they qualify for distributions, we will add them to the database.
Start with a contribution, continue with a grant request, and we will finish with the grant. It is that easy. We truly believe that together we can change the world! What are you waiting for, world changer?