Once a cause receives a donation either through a sale or a cash donation the cause starter will be sent an email(subject: “Assign the beneficiary”) with instructions on how to assign the funds to the beneficiary. If the cause starter is the beneficiary they will receive an email(subject: “Receive your funds”) informing them how to get paid. The beneficiary will be walked through a secure process with Stripe to set up an account. Typically you will give Stripe your bank account or credit/debit card details. Once Stripe has verified your information FunditOn will automatically deposit your cleared funds at the end of each month. You can also initiate transfers sooner for funds that have cleared.
If the cause you are supporting is a qualified non-profit under section 170(c) of the Internal Revenue Code you can deduct the sale amount of the item you donate. You can only deduct the item once it has sold. To get a tax receipt FunditOn will have to share your name and email with the non-profit concerned. We will request your consent before doing so. The receipt will be provided by the nonprofit. All cash donations to the cause are also deductible.
Funds are considered cleared 7 days after the transaction. Assuming our payment processor has not discovered something fraudulent sales are then considered cleared. In the case where an item was shipped the funds clear 5 days after we receive delivery confirmation from the carrier. If delivery was within 6 days of the transaction the 7 days from the transaction date still applies.
FunditOn only takes 1% plus $0.20 per transaction for our service. We also add $0.50 to the price of any shipping labels that we generate to pay for the shipping service we use. Stripe(our credit card processor) takes 2.9% plus $0.30 per transaction which we pass on to the cause. For monthly deposits made to bank accounts or debit cards Stripe charges $2.25 and 0.25%. For example if your cause is due $1,000, Stripe will charge $4.75 to put the money in your account. We calculate that fee and subtract it from the amount we transfer.
Start by messaging the donor. We need you to message the donor so you can establish that the item is still available and located somewhere close enough for you to pick it up. You probably will want to take a look before buying. Ideally you purchase from your phone as you pick up the item. In some cases donors are willing to ship.
As we operate under marketplace tax laws we are obliged to collect sales tax. Some states call it Use tax. It is normally the same as the sales tax you might pay on anything you purchase in the store. Whilst no one ever chases them down for it, when you sell your bicycle to your neighbor, your neighbor does owe use/sales tax in most states. As we have a record of that sale we have to pay it on your behalf.
As a marketplace we have to pay taxes in our home state(Colorado) regardless. But if you are in another state where our total sales for the previous year are under a certain threshold we do not need to charge you the tax. There are also a few states that simply do not have sales tax. If you are making a cash donation there is no tax.
Yes! You can make a cash donation using Bitcoin. We convert the Bitcoin to the US$ amount and pay out to causes/non-profits in US$. Currently we do not accept Bitcoin for goods or services as the network confirmation time is unreliable. For cash donations network time is less important. We have a $10 equivalent minimum due to some services not allowing smaller transfers.
Before purchasing the item you need to make arrangements with the donor. This is when you can negotiate the price, where you will pick it up etc. Ideally you pay from your phone as you pick it up. In some cases a donor may be willing to ship it to you. Take some time to establish that the item is in the condition etc that you expect. You can message the seller and even request they post more photos if needed.
If you need to update your payout info go to your account and click “Update Stripe”. You will be redirected to Stripe which will authorize you. Once on your Stripe page in the top right corner click on the person icon and then under Payout details click FunditOn. Here you have the option to edit your payout account details. Your next Payout will use the new account or card.
Services can be offered and are a great way to support a cause. There are no tax deductions for services but this is still a good way for small businesses and individuals to give something back. As per our terms we cannot guarantee any service that is provided.
The cost of processing such a small payment with any taxes involved make small transactions unviable. This maximizes funds received by the cause/non-profit.