the-power-of-the-sustainability-fund

Creating Long-Term Impact with Your Donations

Transforming Donations into Lasting Impact:

Imagine a world where your donations provide immediate relief while also creating a lasting legacy. This vision is the heart of Better Giving’s Sustainability Fund. Through a carefully managed investment portfolio, we enable nonprofits to grow their resources and amplify their impact over time.

The Challenges Nonprofits Face:

Nonprofits work hard to make the world a better place, but they often grapple with significant financial challenges. Limited resources, lack of financial expertise, and the constant need for fundraising make it difficult for them to plan for the long term. Traditional endowments require high fees and a level of sophistication many small organizations simply can’t afford. This is where the Sustainability Fund steps in, offering a simple solution to secure their futures.

What is the Sustainability Fund?

The Sustainability Fund operates as an endowment held by Better Giving for the support of your nonprofit’s mission. Instead of being granted immediately, donations allocated to the Fund in support of your nonprofit are invested in a diversified mix of stocks, bonds and SEC-approved cryptocurrencies. This enables donations in the Fund to grow in perpetuity and provide your organization with more substantial resources, maximizing the impact of every dollar contributed. Nonprofits are able to take advantage of the benefits of an endowment, without the administrative burden and compliance obligations

Why the Sustainability Fund Matters:

Let’s hear from Daniel El Travieso from Territorio de Zaguates, a nonprofit dedicated to rescuing stray dogs in Costa Rica. Daniel shares;

“We are in love with the easy process Better Giving has created to start an endowment. We have always focused on recurring giving with our donors, and the endowment takes this to the next level. I think we can grow our endowment to create a steady flow of income to preserve our efforts through time.”

Nonprofits like Territorio de Zaguates benefit from the Sustainability Fund in multiple ways (and you can donate to them now!):

Affordable Access: Simple and free on-boarding, performance based fee structure, and no minimums required to participate
Financial Growth: By leveraging the power of compounding, nonprofits can grow their wealth over time, ensuring more resources for their missions
Professionalism: A ready Sustainability Fund attracts large donors, adding an element of professionalism and stability
Reduced Fundraising Stress: With a stable and growing income stream, organizations can focus more on their mission and less on continuous fundraising

How It Works: Simplicity Meets Strategy:

Nonprofits can easily customize the percentage of incoming donations allocated to the Sustainability Fund or leave that decision to donors. Funds are held in a Fidelity brokerage account and strategically deployed at the start of each quarter to maximize growth. Quarterly rebalancing maintains optimal asset ratios, adapting to market changes.

For instance, if cryptocurrency investments outperform, gains are reallocated to maintain the fund’s balance. This methodical approach ensures stability and growth, providing a reliable income stream.

Transparency and Flexibility:

Transparency is key to our approach. Nonprofits receive regular updates on their fund balance, including daily donation totals, weekly balance updates, and comprehensive quarterly and annual reports. They can also choose to reinvest dividends or cash them out, aligning with their financial strategies.

Our fee structure is clear and fair: a 0.85% annual AUM fee and a 12% performance fee on returns exceeding a 5% hurdle rate. We charge no setup costs, no minimum deposits or platform fees, ensuring every nonprofit has free access to financial sustainability. We only succeed when our fellow nonprofits succeed.

Benefits for Nonprofits and Donors:

For Nonprofits:

Benefit: Access to financial markets, easy onboarding, no financial expertise required, and a professional interface to attract large donors.
Value: Ensures financial sustainability and growth, reducing reliance on continuous fundraising.
Problem Solved: Addresses uncertainty in long-term funding and financial sustainability.

For Donors:

Benefit: Contributions are invested to support long-term nonprofit sustainability.
Value: Ensures donations have a lasting impact, amplifying the effect of their generosity.
Problem Solved: Satisfies the desire for donations to have a sustained, growing impact beyond immediate use.

Join the Movement for Sustainable Change:

The Sustainability Fund represents a revolutionary approach to charitable giving. By turning your donations into investments, you’re not just meeting immediate needs but building a foundation for future growth and impact.

Your contributions today can create a lasting legacy, supporting nonprofits in their vital work for years to come.

Act today!

Contribute to sustainable change with our Sustainability Fund.
Learn how your donations can make a lasting impact.
Visit Better Giving to get started today.

The Power of the Sustainability Fund