Q. What is 401Gives?
401Gives is a statewide day of giving, on April 1, 2023 (4-01) fueled by the power of social media and collaboration. 401Gives is an initiative of United Way of Rhode Island.
The online fundraising campaign is designed to bring a collective voice to the nonprofit community and deepen the state’s culture of giving. This giving challenge combines a state-of-the-art platform with a sophisticated media strategy to highlight the impact of Rhode Island’s nonprofit sector, which accounts for 18 percent of the state’s total workforce.
Now, everyone can make a difference in Rhode Island with just one click. The inaugural 401Gives, on April 1, 2020 brought in $1.3 million to 366 nonprofits across Rhode Island and most recently in 2023 brought in $3.4M to 546 nonprofits!
United Way of Rhode Island is proud to power 401Gives as part of their strategic plan to deepen the culture of philanthropy in Rhode Island and help build capacity of all nonprofits in all sectors and geographic locations.
Q. When is 401Gives?
401Gives is on April 1st, 2024 from 6am 4/1 - 6am 4/2 !
Q. Which organizations can participate?
Organizations that are verified 501( c )(3) charitable nonprofits that are headquartered or provide services in Rhode Island.
Q. Who can donate?
Anyone from anywhere may donate. Donations through the 401Gives online portal to charitable nonprofit organizations are tax-deductible and cannot be refunded. Contributions may be made via credit and debit card only. Donations will be received and receipted by GiveGab.
Minimum donation amount is $5.
Q. What is GiveGab?
GiveGab, which is becoming Bonterra, is a nonprofit giving platform that helps nonprofits to raise money, engage donors and manage volunteers quickly and efficiently. GiveGab offers a full portfolio of simple and easy to use products that allows organizations to function in a more streamlined manner.
GiveGab takes the highest security measures to ensure your information is protected. They’ve partnered with Stripe as their payment processor and underwriter for nonprofit verification, which is a PCI Service Provider Level 1, the most stringent level of certification possible. You’re welcome to read through their security documentation on their website: https://stripe.com/help/security
In addition, GiveGab forces HTTPS to ensure a secure connection wherever you are on GiveGab, whether you're making a donation or just volunteering. The security of administrators, donors, and volunteers is taken very seriously.
Q. How will donations be distributed?
Each donation made to a participating nonprofit will be disbursed directly from GiveGab via direct deposit within 5-7 business days.
Q. How much of my donation goes to the nonprofit?
GiveGab retains a 2.5% campaign management fee from all donations. Credit Card processing fees are an additional 2.5% + $0.30 for all major credit cards (Visa, MasterCard, American Express, and Discover). Donors are given the option to cover the fees and if they choose this option, 100% of the online charitable gift will go to the receiving organization. All donations are final and cannot be refunded. Any donations processed outside of 401Gives donation period, through GiveGab.com, or subsequent recurring donations are subject to transaction fees outlined on the GiveGab.com pricing page: http://info.givegab.com/pricing.
In addition, if you use ACH, the fee replaces the 2.5% + $0.30 for a flat $3, requiring the donor is giving at least $100 for ACH to be an eligible payment option. The flat $3 ensures larger donors aren't being charged excessively, and are incentivized to use that instead if they want to give online.
When opting to cover the fees on a donation, that increases your gift that is then tax deductible.
Q. Who will receive my contact information?
The organization(s) you choose to support will have access to your name and email address. This information is used solely to send thank you messages, provide the option to receive future notifications, and to notify you of future activities. Donors can wish to remain anonymous as well. Anonymous donations will be displayed as "Anonymous" on the nonprofit’s page. The nonprofit will receive your name and email address, but they will be notified that you have chosen to remain publicly anonymous.
Each nonprofit has their own dashboard with their donor information. Donor information will not be used in any other manner by United Way of Rhode Island or the GiveGab website.
Q. Do I (donor) need to create an account with GiveGab?
No. You do not need to create an account to make a donation. The benefits of creating an account include having your tax receipts collected in one location, being able to track your donations, follow the charities you support, and engage in future volunteering and donations. Your tax receipt is emailed immediately upon processing your donation. To claim a donation as a deduction on U.S. taxes, you should retain the donation receipt as an official record.
Q. Can I make donations via a mobile device?
Yes! Simply visit 401gives.org on your mobile device.
Q. Can I pre-schedule a donation for 401Gives?
You cannot pre-schedule your 401Gives gift, but you may make a donation to a participating nonprofit before or after the 401Gives. In order for your donation to be counted towards prize incentives awarded on 401Gives it must be made between midnight at 11:59 p.m. on April 1st, 2024.
Q. What if my preferred organization is not listed?
Please send an email to 401Gives@unitedwayri.org to request that we contact your organization of choice.
Q. What is state charitable solicitation registration?
Nonprofits are held to a high standard of government regulation and public scrutiny. And that is with good reason! Eligible 501(c) nonprofits are exempt from federal corporate taxes and have access to public funding. These benefits are not typically available to for-profit businesses, so laws are in place to protect the public and ensure nonprofits do not abuse their financial advantages. The IRS and states all have requirements for nonprofits.
Q. Why is state charitable solicitation registration compliance important?
While 501(c) nonprofits receive key financial benefits, the penalties for noncompliance can be serious. The IRS can revoke a nonprofit’s tax exemption and impose fines that can accrue daily. The states can administratively dissolve a nonprofit corporation and levy steep financial penalties. Perhaps worst of all, an organization can lose out on a grant or large donation because it has not kept itself in good standing.
Taking a proactive approach to compliance helps ensure the sustained success of the organization. The cost of staying compliant is small in comparison to the much larger costs of noncompliance. The saying, “an ounce of prevention is worth a pound of cure” could not be more true in this context.
Q. What are the key aspects of state charitable solicitation registration compliance?
The IRS provides tax exemptions to eligible nonprofits under IRC 501(c). Public charities and private foundations receive 501(c)(3) tax exemption. The IRS scrutinizes organizations when they apply for 501(c)(3) but also ensures that those organizations meet the ongoing obligations to remain eligible. Nonprofits must file a 990 tax form each year with the IRS to disclose their financial data for the year.
Each state has their own set of requirements. Nonprofits are typically incorporated in a given state as a nonprofit corporation. The state in which the nonprofit has incorporated will impose requirements on the nonprofit, and those responsibilities typically span across multiple state agencies. Usually nonprofits must submit an annual filing to the corporations division of the secretary of state, maintain its license to fundraise (charitable solicitation registration), file for a state business license, and maintain state-level tax exemption with the revenue department. As nonprofits expand outside of the state or operate nationwide, they must comply with the same items in each other state as well.
In addition to IRS and state filing requirements, nonprofits must keep adequate records. Keeping accurate and complete records is critical in the event that an organization is audited. It is also common that board members or donors request information from the organization. Finally, records are necessary for submitting applications and renewal filings with various government agencies.
Q. When I check the box on GiveGab to declare state charitable solicitation registration compliance, what am I attesting to?
When you check the box you are attesting (defined as "declaring that something exists or is the case") that your organization is compliant with applicable state fundraising requirements in the states in which you may solicit donors using the GiveGab platform.
Q. Do you have additional resources to reference about state charitable solicitation registration?
Yes! Here are a few more resources from Harbor Compliance to help you:
- Guide and Overview of Many Nonprofit State by State Compliance Requirements
- Guide and Overview Specific to Fundraising Compliance
- National Council of Nonprofits and Harbor Compliance have partnered to create a white paper explaining the state charitable solicitation registration requirements.
- A Quick Summary of Charitable Solicitation in Graphic Form
- Executive Brief: Charitable Solicitation Registration (great for driving awareness and support with leadership and the board)
- State by State Links to the State Organizations that Regulate Charities, Solicitation, and Registrations
Q. How can I ensure my organization receives it's donations?
In order to receive your donations via ACH transfer, GiveGab requires a checking account eligible to receive ACH transfers and withdrawals. Your donations will be deposited within 5-7 business days on a daily rolling basis.
If your organization supplies the wrong type of bank account (such as a savings account), or the wrong account numbers, GiveGab will be in touch! After 30 days, if GiveGab hasn't heard from your organization, they will refund your gifts back to your donors.