I had been thinking it would be really cool if Donor Advised Funds (DAF) were open to accepting crypto tokens as deposits. There has been a lot of wealth built up in crypto and it would be very beneficial to create simple means to move some portion of that to non-profit organizations. Shortly after this I stumbled upon Endaoment.

Endaoment describes itself as “We’re a tax-exempt Community Foundation built for decentralized finance and focused on social impact.” Endaoment is a DeFi version of a DAF like Schwab Charitable. This morning, while Ethereum gas prices were predictably low, I sat down to play with this first hand.

Setting up your Fund

I went to Endaoment and connected to my wallet. Easy enough, just like any other Web3 application. I then created my own fund. This was super simple. I needed a name, I chose Things 4 Good. Gave it a tagline. I then associated my name and address. There were no credit checks, no social security numbers, just basic contact information. After this I submitted a transaction that deployed the smart contract for my DAF.

Now I had my own contract associated with Things 4 Good, and it was time to provide an initial deposit to the fund. Endaoment requires a minimum $500 transfer so I sent in 0.15 ETH. When Endaoment receives the ETH they immediately transfer that to USD Coin (USDC). They sent me a receipt for tax purposes for the full value of the 0.15 ETH. Endaoment takes a 0.5% transaction fee, and there are some fees associated with the transactions to USDC, which are taken out after.

With that done, my DAF was fully established on the Ethereum mainnet, funded, and ready to use.

Granting Funds

Now that Things 4 Good was setup I wanted to try issuing a grant. The Internet Archive is an organization I have supported for a long time and I thought it would be a fitting organization to make a first donation to. I picked them off the list of organizations registered on Endaoment. This was fun to me, because this is also on-chain, so to send the grant you interact with the smart contract.

I appreciated this as it felt like a much different level of control than a typical DAF. We use Schwab Charitable and you make recommendations, they send checks, and you get emails saying it all happened but you can’t actually see it yourself. With Endaoment I can see my transaction and know exactly what happened when.

With very little effort I have my DAF setup on the Ethereum mainnet, funded, and already distributed a grant. This is holy crap amazing. 🤯

This seems like a powerful and needed capability as you manage your crypto assets. Plus it is an incredible example of the power of DeFi applications built on Web3 technology.

Deploying Organizations

After chatting with some of the Endaoment team on Discord they showed how you can deploy any existing 501(c)(3) organization. Any user can fund the deployment of the smart contract for that group. So I went ahead and deployed Constellation Fund and Minnestar on Endaoment.