Donation Policy
Effective Date: January 2, 2024
DAFPay Network (DPN) accepts charitable donations and regrants to charitable organizations in furtherance of its charitable mission. DPN is organized as an exempt (nonprofit) corporation under the law of the State of Delaware and is recognized by the Internal Revenue Service (“IRS”) under Section 501(c)(3) of the Code as a tax-exempt public charity. DPN reviews all such recommendations under the terms set forth in the Donor Terms of Service. By using the DPN, Donors acknowledge that their donations may be sent to recommended charities pursuant to such Donor Terms of Service as interpreted and applied by DPN in its sole and exclusive discretion. All donations made by DPN are effected in a manner that is consistent with our policies and applicable laws and regulations, including the requirement that DPN has ultimate discretion and control as to the use of any contributed funds. Notice: The DAFPay Network is used for the facilitation of donations involving nonprofits that have not yet claimed their Chariot accounts. Upon successful registration and account creation with Chariot by a nonprofit, any future gifts will be sent to the organization directly from the DAF provider.
Timing of Fund Allocation to Charities
The enrollment status of a charity will determine the method and speed at which DPN grants funds to that charity.
Charities that enroll with the DPN will receive gifts as soon as their account verifications and confirmations are complete.
DPN will be able to make a grant to a charity, even if not enrolled, as long as the charity satisfies DPN’s certification requirements for charitable entities, as established by DPN in its reasonable discretion based on legal, compliance, regulatory and other criteria and subject to change from time to time.
Pending the distribution of grants, these funds will not pay interest to the charity.
Grant Distribution Policy
DPN will issue and mail a check to the charity’s IRS address as listed in Guidestar’s database.
If a charity does not claim its funds within 60 days DPN will still mail a check to the address on file.
Check Validity and Void Policy
Issued checks are valid for 90 days from the date of issuance stated on the check. Following this period, checks will be void as to such unclaimed funds.
While DPN will take all reasonable steps to attempt to grant donated funds according to the donor's recommendation, DPN retains exclusive legal control over all donations. In the rare cases when a charity does not claim the donation, DPN will (when feasible) ask the donor to recommend an enrolled charity from the DPN directory of charitable causes and organizations (the “DPN Directory”) to benefit from the donation.
If DPN is unable to reach the donor, or the donor chooses not to respond, DPN will grant the funds to a charity in the DPN Directory that DPN operates in a similar cause area to the charity originally recommended by the donor, based on DPN’s reasonable determination.
Fees for Check Issuance
A surcharge of $25 or 10% of the check amount (whichever is lower) will be applied for each check sent to a charity that fails to enroll in DPN. Charities that create an account with Chariot will not incur these check issuance fees on any grants sent after enrolling.
Fees for Returned Checks
Any check that is returned to DPN will be charged a $15 fee for each instance.
Legal and Certification Compliance for Grant Eligibility
If a charity loses its 501(c)(3) status, or otherwise does not comply with DPN’s certification requirements, donors will be notified and asked to select an alternative beneficiary from the DPN Directory. In the absence of donor instructions, DPN will redirect the funds, with DPN endeavoring to choose a charity that is a similar cause organization in the DPN Directory, based on DPN’s reasonable determination.
Donor Grant Cancellation and Refund Policy
Donors may cancel their grants before they leave their Donor Advised Fund (DAF), subject to the policies of the respective DAF provider.
Donations to DPN are final and irrevocable gifts, and refunds are only granted in exceptional circumstances. DPN in its sole discretion may elect to offset a future grant rather than requesting that the charity return the funds already granted.
These circumstances include gross error transactions, which occur when the donor makes a transaction for an amount grossly different than the intended amount. For example, this would occur if a donor made a $10,000.00 donation instead of $10.00 donation.
Charity Rejection of Grants
If a charity organization proactively rejects a grant from DPN, DPN will make reasonable efforts to send the grant back to the donor’s DAF. If DPN is unable to send the funds back to the donor’s Donor Advised Fund, DPN will grant the funds to a charity in the DPN Directory, with DPN endeavoring to choose a charity that operates in a similar cause area to the charity originally recommended by the donor, based on DPN’s reasonable determination.
EXHIBIT B – FEES
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DPN will remit to Chariot a percentage of the gross amount of each donation to DPN that is facilitated by the Chariot Services pursuant to this Agreement. Such percentage will be set from time to time by mutual agreement of Chariot and DPN, and shall be: 2.9%. In addition, if applicable, DPN remits to Chariot a percentage of the gross amount of each donation to DPN that is facilitated by the Chariot Services pursuant to this Agreement equal to the amount charged to Chariot by third-party donation platforms. No mark up or surcharge shall be added to the remittances, and DPN will only remit the actual amounts charged to Chariot by third party donation platforms.
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Chariot Subscription Fee Exemption: Notwithstanding the above, for charity subscribers who have purchased a subscription directly from Chariot, covering a specified donation volume without additional fees to DPN, no remittance to Chariot shall be required from DPN for the facilitated donations up to the covered volume. DPN shall commence remittance to Chariot as per the agreed-upon percentage only when the covered donation volume is exceeded. DPN will continue to remit to Chariot any third-party donation platform fees charged to Chariot at cost.
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Maximum Fee Clause: Notwithstanding any other provision in this agreement, the total combined fees, encompassing both Chariot fees and third-party donation platform fees charged to charities, shall not exceed 7% of contributions processed by DPN through the Chariot Services. The purpose of this clause is to ensure transparency in the total fees charged to charities, and to maintain most funds are going towards the final organization.