Benevity partners with a global network of independent charitable foundations. Whenever you, the people at your company or anyone from your larger community makes charitable donations through the Benevity platform, a foundation (as selected by you during implementation) receives the funds directly. It receives donation advice via the Benevity platform and, in turn, disburses funds to charities and non-profit organizations for charitable purposes.
Each foundation is a registered charitable organization with its own mission, governance and compliance requirements that are aligned with the laws and regulations of the jurisdiction where it is established and operating. Each foundation is governed by an independent board of trustees or directors. The trustees/directors oversee the governance of the foundation and ensure that it remains compliant with applicable laws and regulations. Since they are charitable foundations that receive donations, these foundations do not need to go through client vendor setups, which are geared toward for-profit businesses that provide services.
Benevity’s relationship with partner foundations
Benevity partners with foundations that work exclusively with Benevity, such as UKOGF, and other foundations that work with Benevity as well as other entities, such as HdS and Charitable Giving. It conducts extensive vetting and due diligence of charitable foundations prior to formalizing partnerships and continues to monitor the foundations throughout the relationship.
Benevity acts as a service provider to the foundations, to varying degrees and under formal written agreements with each. Its services include preparing and sending donation reports and tax receipts/donation acknowledgments, conducting vetting and verification of recipient causes, as well as collecting due diligence documentation from causes receiving donations, as required. Donations are received by the foundations directly from donors. Charitable donations are not received by Benevity Inc. at any point.
The donor advised fund model
It is important to understand that the foundations are registered charitable organizations and not vendors that provide services. When charitable donations are made through the Benevity platform, the foundations disburse funds at their discretion and based on the donor advice received from you and your people, in accordance with Benevity’s vetting and verification practices.
As required by their respective charitable laws, the foundations maintain exclusive legal control and discretion over donated funds and operate similar to a “donor advised fund” model. The contract between you and Benevity governs use of the Benevity platform including the donations to the partner foundations.