When you donate money through a fiscal host, it serves as an intermediary to manage and distribute the funds legally and transparently. Here is why this structure is often necessary:

1. Legal and Tax Compliance: Fiscal hosts are typically registered nonprofit organizations. This status allows them to accept tax-deductible donations on behalf of individuals or grassroots projects, which an individual might not be able to do. This ensures the donation complies with tax laws and provides donors with potential tax benefits.

2. Accountability and Oversight: Fiscal hosts help ensure that the funds are used as intended by managing the process. They provide oversight, which gives donors confidence that their contributions are directed to legitimate purposes and not misused.

3. Access to Resources: Many fiscal hosts offer administrative support, such as processing donations, issuing receipts, and managing the financial logistics, which individuals may not have the capacity to handle

It is important to clarify that while donations are routed through a fiscal host, the money truly goes to the individual or project you want to support. The fiscal host simply acts as a steward of the funds, ensuring proper handling and compliance with regulations, so the recipient receives the intended support efficiently and ethically. This structure builds trust and protects everyone involved.

Deciding whether to be a “supporter” or a “friend” depends on how involved you would like to be in the organizations and how much you are able or willing to donate. Here’s how to think about it:

Becoming a Supporter (+$500)

• Benefits: you gain the ability to nominate and vote on future grant recipients, giving you direct say in how funds are allocated and which individuals or projects are supported

• Ideal for:

• People who want a more active role in decision-making and shaping the organization’s impact.

• Those who are in a financial position to contribute a larger amount and want to engage deeply in the community.

Becoming a Friend (under $500)

• Benefits: you will be involved in all events and correspondence, allowing you to stay connected, support the cause, and contribute without the responsibility of voting.

• Ideal for:

• People who want to support the organization but may not have the means to donate $500 or more.

• Those who prefer to be involved socially or stay informed without the added commitment of decision-making.

Ultimately, both options allow you to contribute meaningfully to the community, but the choice depends on your level of financial commitment and desire to influence the allocation of grants. If you are passionate about having a direct impact on funding decisions, being a supporter is the way to go. If you prefer to support in a more flexible and less formal way, being a friend is perfectly impactful too.

Grant

1. Purpose: A grant is typically awarded for a specific purpose, project, or goal. It often comes with expectations or requirements for how the money will be used.

2. Process: Grants are usually given through an application process, and recipients are often required to report on how the funds are spent and what outcomes were achieved.

3. Source: Grants are usually provided by organizations like foundations, government agencies, or institutions.

4. Oversight: There is often a higher level of accountability, such as progress reports or adults, to ensure the funds are used as intended.

Donation

1. Purpose: A donation is a gift of money, goods, or services given with no expectation of return or obligation for how the recipient uses it (unless specified by the donor).

2. Process: Donations are more straightforward, often requiring no formal application process or detailed reporting from the recipient.

3. Source: Donations typically come from individuals, businesses, or organizations supporting a cause.

4. Oversight: There’s generally less accountability or restrictions, though donors may specify their preferences for how the money is used.

In summary, Grants are structured, purpose-driven, and usually require oversight, while donations are more flexible and given freely without strict conditions. Both can make a significant impact, but grants are better suited for specific projects, while donations support broader, ongoing efforts.