Using Portion of RareDAO Treasury For Charitable Purposes Through Endaoment

Title: Using Portion of RareDAO Treasury For Charitable Purposes Through Endaoment

Author: Endaoment Team

Summary:

Create a SuperRare Community Fund with Endaoment, a 501(c)(3) community foundation, and direct a percentage of the treasury to nonprofits which align with SuperRare’s value and core principles.

Abstract:

The purpose of this fund is to offer $RARE token holders the chance to give back, with active participation in the decision making.

The fund will be anchored by the SuperRare DAO Treasury, and will encourage artists, collectors, and any member of the public to contribute as well (splits from mints, donating NFTs, contributing $RARE, etc.)

Motivation:

Increase charitable activity and impact among the SuperRare community and allow $RARE token holders to decide on what nonprofits to support, keeping in mind alignment to SuperRare’s values and principles. $RARE token holders would determine what nonprofits to support through community voting and the cadence of donations.

High-Level Endaoment Overview:

  • 501(c)(3) nonprofit community foundation built on the Ethereum blockchain
  • Accepts any tokens with a liquid market, converts to fiat (or USDC if a nonprofit prefers this), and deliver to any nonprofit in good standing, which offers every nonprofit an accessible entry point into web3
  • Donors pay a 1.5% transaction fee (0.5% upon donation, 1% when funds are granted to nonprofits) and a $15 bank wire fee (if delivered in fiat). Donors have the ability to “round-up” their donations, like on PayPal or other payment providers. Ex: A donor gives $100 to a nonprofit, Endaoment takes out a 1.5% fee and a $15 bank wire fee (if delivered in fiat) so $83.50 is delivered directly to the nonprofit’s bank account.
  • Any onboarded nonprofit receives a smart contract address to easily allow creators to “plug and play” with a charitable component or split
  • More information about Endaoment can be found here

Specification:

This proposal will be broken out into 3 phases.

Phase 1: Request feedback from $RARE token holders on using a portion of the treasury to fund charitable activity directly to nonprofits. Iterate on this proposal based on community feedback and ideas.

Phase 2: If SuperRare community elects to move forward and decide on an initial contribution, SuperRare will set up the community fund with Endaoment and make an initial contribution.

SuperRare will identify a “description” or “mission statement” for the fund and will work in collaboration with Endaoment for any advisory support.

SuperRare community to also decide on the percentage of treasury to contribute and the distribution timeline (quarterly, etc.)

Phase 3: Choosing the nonprofits to support

$RARE holders will help determine the nonprofits organizations (and number of nonprofits to support) that align with SuperRare’s values and principles that will be receiving the distributions.

Some ideas around values and mission alignment could include (these are suggestions) supporting nonprofits within these areas of interest:

Funds will be distributed evenly, as dollars or USDC (if the nonprofit decides to get set up with a wallet), to selected nonprofit organizations/charities that align with SuperRare’s values and principles. This can occur once the voting mechanism is determined and set up (Snapshot, etc.)

Benefits:

The goal is for this process to be collaborative and participatory, led by $RARE token holders. This is a proposed outline that is open for feedback and iteration to best meet the needs of this community. The ultimate benefit is using a portion of the $RARE treasury for impact, helping aligned nonprofits further their charitable mission. By using Endaoment’s platform, $RARE token holders can give to any 501(c)(3) nonprofit in the United States in good standing.

Outcomes:

A record of all outgoing grants from the fund will be listed on the community fund page, and fully visible on-chain.

We will track outcomes by obtaining impact stories and metrics from the benefitting nonprofits, in partnership with Endaoment.

Informing the $RARE community on how donated funds are used will foster a deeper, long-term relationship with the supported organizations.

Provide an easy and one-stop-shop way for creators to integrate a charitable component to their projects.

4 Likes

@alexismm61
Does Endaoment perform KYC on its donors to ensure funds are not illicit or improperly obtained? Is there a check/monitoring system?

If a donor wants a tax receipt, we need name, email and address. Our platform also checks wallet addresses against the OFAC SDN and Blocked Persons list so those wallet address cannot interact with our platform.

2 Likes

Another interesting approach could be integrating endaoment at the protocol level and allowing artists and collectors to personally divert a portion of proceeds to charities of their choice.