Frequently Asked Questions
Starting a Growfund
What is a Growfund Advisor?
A Growfund Advisor is synonymous to being an account holder. Once you complete an application and become approved for an account, you become a Growfund Advisor.
Are my contributions tax deductible?
Yes. A contribution to Growfund has the same tax deductions as would a donation to any public charity.
How can I contribute to Growfund?
You have a variety of options for how you can make a contribution to Growfund. You can contribute via cash, check, credit card, wire transfer and payroll deduction.
You also have the option of contributing other types of financial assets, including stocks, mutual funds, real estate and more. Please reach out to [email protected] if you would like to learn more about how you can contribute via these types of financial assets.
Is there a minimum needed to open a Growfund account?
Yes, but it is only $5. Start a Fund Today
Are there any deadlines or timing restrictions?
No. The only conceivable timing consideration occurs when you are planning a year-end contribution. Please note in this case that certain types of contributions, such as real estate or stock transfers, take longer than simple cash or credit card contributions. Please reach out to [email protected] if you would like to learn more about how you can plan ahead.
Do I need to maintain a minimum balance?
Yes. While the minimum initial contribution is $5, the Growfund balance must reach $100 within the initial twelve months.
Is there a minimum grant amount?
Yes. Grants can be made for as little as $50.
Will my contributions be invested?
Yes. Your Growfund will automatically be invested once its funds balance reaches $500. The investment vehicle is the Vanguard 500 Index Fund, which consists of a balanced portfolio and tracks to the S&P 500.
How do I know if my favorite charities are eligible?
Growfund Advisors are able to seamlessly recommend grants to over 800,000 501(c)(3) public charities. With new charities being added to the list continuously, odds are that your favorite charity is among them.
What is a 501(c)(3) public charity?
501(c)(3) refers to the tax-exempt status of a nonprofit organization as qualified under IRS rules. Because 501(c)(3) organizations are charitable by nature, they are allowed to receive tax-deductible donations.
Does Growfund support international charities?
Yes, but on a limited basis. Only a select number of international charities are currently eligible to receive Growfund distributions. Growfund does, however, support numerous US-based charities that focus on international issues.
How can I make a charity eligible to receive Growfund donations?
Global Impact and its partners provide vetting services for both domestic and international charities. It takes 3-5 business days to vet a domestic charity while it may take several weeks to vet an international charity. These services come at an additional fee to the Growfund Advisor. Once a charity has passed the vetting process, that charity will become eligible to receive donations from all Growfund Advisors. Please reach out to [email protected] for further information about vetting a new charity.
Can I set up a recurring contribution?
Are my contributions secure?
Yes. Growfund’s platform is provided by Stellar Technology Solutions, a group that takes great pride in ensuring the utmost security for its platform users. For more information on what Stellar is doing to protect user information, please visit here.
How often are funds distributed to nonprofits?
Global Impact will distribute funds to the recipient nonprofits within seven business days of receiving the grant recommendation by the Growfund Advisor.
What are the fees on my Growfund account and how are they assessed?
Our pricing model is straightforward and simple. There is a three percent annualized fee on the fund balance up to $999,999; two percent annualized fee on the fund balance between $1,000,000 to $3,999,999; and a one percent annualized fee on the fund balance of $4,000,000 and above.
This fee will be charged against and subtracted from the fund balance on a monthly basis following the fund’s establishment date until termination of the fund.
Does 100% of my grant go to the designated charity?
To what entities does Growfund NOT support distributions?
For legal reasons, Growfund contributions cannot be distributed for the following purposes, including but not limited to:
- An individual
- For the personal economic benefit of the Growfund Advisor, other Advisor(s) or a related party of either
- For political contributions or legislative activities
- To private foundations
- To terrorists or their support networks