Frequently Asked Questions
Starting a Growfund
What is a Growfund Advisor?
A Growfund Advisor is synonymous with being an account holder. Once you complete the application and confirm your account, you become a Growfund Advisor.
Primary and Joint Growfund Advisors have full administrative privileges over their Growfund, including the right to contribute funds to the account, grant funds from the account to organizations, receive account statements, and change account preferences. Secondary Advisors can contribute to the account, but not make grants.
How do I create a Growfund?
To create a Growfund, simply click here or the “Start a Fund” button located in the top right-hand corner of the webpage. You will be asked to complete a form that will take no longer than ten minutes of your time.
You will receive a confirmation email, which will prompt you to login and set up security questions.
What information do I need to create a Growfund?
Not much at all! You will not be asked for your social security number or bank information.
We simply require the following:
– Basic contact information and birthdates for the Primary Advisor, Joint Advisor, and all successors
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?
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?
While there is no minimum contribution amount, the Growfund balance must reach $100 within the initial twelve months. This does not apply to individuals utilizing a white labeled version of Growfund through their employer, school, or otherwise.
Is there a minimum grant amount?
Yes. Grants can be made for as little as $25.
Will my contributions be invested?
Yes. You have the option of determining the allocation of your funds that will be invested versus saved (allocated to a non-interest bearing account). Regardless of your Growfund balance, the indicated allocation will automatically be invested into a fully diversified and index based portfolio solution that employs a balanced approach with a 60/40 mix of equities and fixed income.
Is there a fee associated with my investments?
Yes. Accounts maintaining an asset balance under $20k have a 3% annualized fee. Accounts maintaining an asset balance over $20k have a 1% annualized fee.
Do I have the option of not investing my balance?
Yes. As a Growfund Advisor, you have the ability to place your funds into a protected non-interest bearing account. (Money Market Account)
Are there multiple investment options available? If not, why?
At this time, The Vanguard 500 Index Fund is the only investment vehicle available to Growfund Advisors.
We are actively working to provide diversified investment opportunities for our Growfund Advisors.
How do I know if my favorite organizations are eligible?
Growfund Advisors are able to seamlessly grant to nearly a million 501(c)(3) organizations. Odds are that your favorite nonprofit organization is among them. If it is not, you can add your favorite nonprofit organization. Growfund will vet the organization and add it to the platform if approved.
How can I make an organization eligible to receive Growfund donations?
Global Impact and its partners provide vetting services for both domestic and international organizations. It takes 3-5 business days to vet a domestic organization while it may take several weeks to vet an international organization. These services come at an additional fee to the Growfund Advisor. Once an organization has passed the vetting process, it will become eligible to receive donations from all Growfund Advisors. Please reach out to [email protected] for further information about vetting a new organization.
What is a 501(c)(3) organization?
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 organizations?
Yes, but on a limited basis. Only a select number of international organizations are currently eligible to receive Growfund distributions. Growfund does, however, support numerous U.S.-based organizations that focus on international issues.
Can I set up a recurring grant?
Absolutely – recurring grants are great ways to fund your favorite organizations or causes effortlessly.
Can I make a restricted grant?
Yes. When you are ready to make a grant, click on the Recommend Grant tab and use the Grant Purpose field to indicate the specific purpose of the grant.
Can I set up recurring contributions?
Absolutely – recurring contributions are great ways to contribute to your Growfund effortlessly.
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.
Is there a fee assessed on my contributions?
No – 100% of contributions are available for grantmaking. Contributions made with a credit card are assessed an administrative processing fee, which is typically 3-3.5%.
How often are grants distributed?
Global Impact will distribute grants to the recipient organizations within seven business days of receiving the grant recommendation by the Growfund Advisor.
What donor information will the recipient organization receive?
The recipient organization receives notice that the grant has been made by the Growfund Advisor via Growfund. This is the case unless the grant has been marked anonymous, in which case the organization will receive a letter stating that a grant has been made by an anonymous donor via Growfund.
What are the fees on my Growfund 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 $20,000; one percent annualized fee on the fund balance over $20,000.
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 organization?
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
- The personal economic benefit of the Growfund Advisor, other Advisor(s) or a related party of either
- Political contributions or legislative activities
- Private foundations
- Terrorists or their support networks
What is a Giving Opportunity?
A Giving Opportunity is a collection of organizations that is eligible to receive grants from Growfund Advisors. Typically, a Giving Opportunity consists of organizations that are tied together by a single programmatic or geographic interest area.
How can I create a Giving Opportunity?
It’s simple! Just mimic the steps that you would as if you were opening a Growfund account. After your Growfund has been named, indicate with the checkbox that this Growfund should be public. This will make it a searchable Giving Opportunity.
How can I share a Giving Opportunity?
Please email us at [email protected] if you would like to share a Giving Opportunity with your networks. We can provide you with a link that allows non-Growfund Advisors to donate via credit card.
If your Giving Opportunity is public follow the steps outlined below:
- Login to Growfund
- On the side navigation click Giving Opportunities
- Click Search all opportunities
- Enter your fund’s title in the keyword field
- Copy the URL of this page and share it
How do I use my Giving Opportunity?
Giving opportunities are flexible funds that can be socially shared, engaging family, friends, and co-workers. Be Creative!
Example 1: Engage family and friends. Create a family fund, share it, raise contributions, and give as a group. Host an end of year potluck or party to choose the causes to donate to.
Example 2: Engage colleagues. Create a fund, share it with colleagues, raise contributions, and give as a group. i.e. The Growfund team managed a No Shave Movember Campaign. Co-workers grew mustaches during November and voted for the best looking mustache with donations into the fund.
What are my responsibilities as a Giving Opportunity Advisor?
It is your responsibility to abide by the conditions that you set forth in your Giving Opportunity’s description. If you create a Giving Opportunity that stipulates funding toward hunger initiatives in Sub-Saharan Africa, then it is your responsibility that all contributions go to this cause.
Can I rename my Growfund?
Absolutely. Please email us at [email protected] and we can do it for you.
Can I change my Growfund’s Advisors, Successors and Beneficiaries?
Absolutely. Please email us at [email protected] and we can do it for you.
What statements will a Growfund Advisor receive?
Growfund Advisors receive monthly statements as well as an annual statement, which is run in early January for the previous year. Statements are available on the Donor Dashboard and Growfund Advisors are notified of new statements by either email or mail, depending upon the indicated preference.
How do I navigate the Growfund platform?
Please refer to the term sheet here to learn how to use the Growfund features.
How can I close my Growfund?
Please email us at [email protected] and we can walk you through the process.
Is my information private?
Of course. Please visit our Privacy and Security Policies page here.