[bmmayer1]

I have to agree. If I don't know where my money is going, I simply can't countenance giving money to a nonprofit (or a company for that matter). I don't know what their selection process is. The one nonprofit they show on their site, Shelterbox, I've seen in action in the Philippines and I have a lot of issues with how they run their operation and the efficacy of their solution.

I've actually looked into that model. You wouldn't have to have partnerships with nonprofits, you can just mail them checks (they are already set up to receive donations and you don't need permission to donate!)

The wrinkle with that concept is with pass-through donations, the donor can't claim a tax exemption unless the pass-through entity is also classified as such. The way around it is to set up a clearinghouse with a bank that authorizes the pass-through entity to write checks on behalf of members. Then when you donate your $1 a day, it goes into your bank account, and checks are written from there every month to the charities of your choice. Then you have to figure out pricing and transaction fees with the extra overhead you're introducing across sending payments to multiple nonprofits.

Maybe it's not a big deal with $1 a day, but if you want to scale to supporting bigger recurring donations people are going to want a tax exemption.

It's a good start but I think it needs to be thought out more to become a viable product.

[cassmarketos]

Hey. I work for Dollar a Day. Just a few quick facts:

• You can read about our selection process in our FAQ: https://dollaraday.co/faq#calendar

(We welcome feedback, if you have it.)

• You can always view a calendar of upcoming nonprofits on site: dollaraday.co/calendar

• All of our donations are anonymously processed by Network For Good,Inc. a registered nonprofit, and are US-tax deductible.

[scotje]

Do you know if there a legal/tax impediment to getting the pass-through classified as a not-for-profit? Or did you just mean it makes it harder to implement as a traditional startup?

[briandear]

The pass-through would have to set up as a foundation that then issues grants to other non-profits. That isn't an easy process. I won't donate anything unless there's a tax advantage. The reason is that non-profits that are registered 501 3(c)'s have certain reporting requirements. If they aren't registered, there's little accountability.

[scotje]

It appears that Network For Good largely operates this way as a "donor-advised fund":

http://en.wikipedia.org/wiki/Donor_advised_fund

[stonemetal]

From their site:

We’re a nonprofit too! Dollar a Day makes no money, in any way, from donations on this site. Dollar a Day was built by a team of (almost entirely) volunteers.

[briandear]

Are they a 501 c3? Nope? Then no tax deduction. Calling yourself nonprofit and actually being a non profit are not one and the same under tax law.