Charitable Profit Arrangement – F.A.Q.

DONORS

  1. At what institutions can I start a Sharing Account with?
    Donors use funds in their existing accounts at any financial institution and from any brokerage account. Examples are Wells Fargo, Morgan Stanley, Dean Witter, Schwab, and E-Trade.
  2. Who controls and monitors the distribution of the money to the nonprofit and to the donor?
    Charitable Profit Arrangement is the "intermediary" or third party administrator that coordinates the contracts with all parties and manages the distribution of donor contributions. Charitable Profit Arrangement has strict confidentiality policies and procedures in place and neither Charitable Profit Arrangement nor the nonprofit has access to any donor account information or funds.
  3. Is there a new account created?
    The Charitable Sharing Account program does not require a new account to be created. Donors can use any financial account at any financial institution. The Donor may want to separate the Charitable Sharing Account assets from their other accounts/assets; therefore a new account may be opened.
  4. Can the donor change or alter their donation?
    Although Charitable Sharing Accounts are designed to encourage a long term commitment, the Charitable Sharing Account agreement is a soft contract. This means that the donor can withdraw, redirect or change the shared amount at anytime.
  5. What percentage do the nonprofits receive in relation to the donor?
    The nonprofit only receives the designated percentage of interest that the donor chooses. The contribution is sent directly from the donors existing account to the nonprofit. 100% of the funds donated go directly to the nonprofit, usually on a quarterly basis.
  6. What are the tax implications?
    The unique process of sharing interest allows the donor to take advantage of tax deductions without having to come out of pocket to make the write off. A substantial amount of funds are made available to the donor using a Sharing Account that were not available before. (see case study for details)

NONPROFITS

  1. How do the funds get from the donor to the nonprofit?
    After the donor is consulted by a nonprofit or Sharing Account representative and the amount they wish to donate has been considered the Sharing Account representative will work directly with the donor, financial institution and the nonprofit to make sure that the transaction is complete. Once the account is authorized the funds will be directly sent from the donors account to the nonprofits account. Sharing Accounts will coordinate with the nonprofit and make sure a registered statement is sent to the donor after each contribution is made.
  2. Is there a new account created?
    The Sharing Account program does not require a new account to be created. Donors can use any financial account at any financial institution. The Donor may want to separate the Sharing Account assets from their other accounts/assets; therefore a new account may be opened.
  3. Can the donor change or alter their donation?
    Although the Sharing Accounts are designed to encourage a long term commitment, the Sharing Account agreement is a soft contract. This means that the donor can withdraw, redirect or change the shared amount at anytime.
  4. What protects the donor's privacy?
    Sharing Accounts has strict privacy regulations and requirements. All parties must clearly respect and defend the confidentiality of the account and account holder information. Any information received by Sharing Accounts will never be shared or compromised. Neither Sharing Accounts nor the nonprofit will have any actionable access to the donors account and cannot make changes or direct funds in any capacity.
  5. How does the donor report the donation for their tax deductions?
    The donation using a Sharing Account is the only way to contribute to a 501(c)(3) and receive full tax deductions without using discretionary funds to make the donation. All tax reporting must come from the nonprofit. Because the donation is being transferred directly from the donor to the nonprofit we cannot perform any tax reporting for the nonprofit.

About Us

Based on the premise of sharing, Charitable Profit Arrangement was founded in 2008 to help nonprofits grow during the poor economic climate. Charitable Profit Arrangement has developed a proprietary program designed to help nonprofits realize sustainable cash flow at no out of pocket expense to the donor.

Benefits of Sharing

Nonprofits, donors and fiduciaries are welcome to contact us at any time to learn our innovative method of fundraising that will be essential to the philanthropic community from here forward.

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