Named Funds

The best way to start a Named Fund for a charity

A gift for the future

Starting a Named Fund for charity via Give For Good

Give For Good is a charity donation platform that is specifically suitable for starting a Named Fund. The reason for this: all donations made via our platform are invested in investment funds, with the profits going to the charities that you choose. This way, your favorite charity will receive support year in, year out — forever — owing to your gift!

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Three advantages

Starting a Named Fund via Give For Good has two advantages:

  1. Ever-continuing impact: the charity gets support every year, even when you donate only one time. This continues year in, year out, for Good.
  2. Ever-growing impact: more money goes to charity every year because of your donation.
  3. Lower cost: regular named funds cost a lot to set up, plus they are usually only possible from a large amount of money. At Give For Good, platform costs are super low because investing for charity is all we do! And donating is possible from 5 dollars.
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How we achieve this

We achieve this by investing your donation in the stock market (in ethical, social and social businesses). Every year, we transfer the profits on this investment to the charities that you have chosen.

Investing is safe and reliable, if you A) invest for a long time and B) spread your investments. We do both. Investing is a well-known way for people to leave money to charity, because it results in support every year, for Good, for the charity that you want to support.

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Special possibilities for large donors

Donations by regular donors are invested in the default Give For Good investment funds (see here). For large donors (starting at 5000 dollars), we provide a special option: to also choose the investment fund, together with our advisors, in addition to choosing the charities that will receive the profit from the investments.

This way, you can for example:

  • donate to nature preservation charities by investing in green or sustainable companies
  • donate to charities that focus on improving the lives of people in developing countries, by investing in microfinance funds

This way you make a dual impact:

  1. by supporting companies in a social or sustainable sector
  2. by supporting one or more charities
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Charities

Here below are some examples of the charities that you can support via our website: 

How it works in 4 easy steps

Step 1

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Choose charity
+ amount

You make a donation to a charity via Give For Good that is stored under a name you choose. You choose the charity + the amount.

Step 2

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Ethical
investing

We invest your donation in ethical, sustainable and social investment funds. Your invested donation generates a profit.

Step 3

50-50 investment method

Interest-on-interest

Every year, we transfer the profits to the charity. These transfers keep going forever. They even become bigger every year.

Step 4

your impact on charities

Your impact
grows

The result: a stable, annual, growing income for your favorite charity that goes on forever.
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FAQ

Interest rates vary per year, but long-term results are remarkably reliable for stock investments (7.0% interest on average per year). This means that if you make a one-time donation today, based on that average interest on stocks, more than 25 times your initial donation will be given to the charity over the next 100 years. This is so much because the amount grows exponentially through a compounding interest-on-interest effect.

The support continues forever: it is a gift that keeps on giving! The charity receives interest on your donation every year, even when you have just made a one-time donation.

To cover our costs, we ask a % of the interest on the donations that we invest for donors. This is on purpose a % of the interest, and not of the donation itself. This way, we only get money if the charities get money!

Legally, we can never ask more than 10% of the interest. At the moment, we ask 5%. Our long-term goal is that this will become 0%. Just like to any other charity, people can donate to us. We hope that in time, these donations will be enough to cover our costs.

Suppose: you invest $ 100 for your favorite charity and that in the first year there is a 10% interest (amounting to $10). Then:

  • $ 4.75 is transferred to the charity for which you invested the donation
  • $ 4.75 is added to the original $ 100. As a result, next year’s interest is made not on $ 100, but on $ 104.75! This way, the charity gets a little bit more support every year.
  • $ 0.50 is transferred to us at Give For Good to cover our operational costs

You can invest safely and with a reliable long-term interest by:

  1. investing in many businesses at the same time and
  2. holding those investments for a long time

By holding to these two rules, we know the interest on the donations will move to the average interest on all stocks combined: 7.0% per year.

How do we know this? By studying more than 150 years of stock market history. Read more here!

All investments are done through an ethical, sustainable and social investment fund. This means that there are no investments in unethical sectors, such as fossil fuels and weapons. Instead, ethical, sustainable and social businesses receive extra support. You can read more about our investments here.

Each year, we transfer 50% of the interest to the charity. The reason for transferring 50% — and not 100% — is that the other 50% is used to increase the invested value of your donation. This way, the charities get a little bit more every year! This is because this 50-50 method generates an “interest-on-interest” effect. This results in your invested donation, and with it the money that is transferred to the charity each year, growing exponentially. So based on your one-time donation, the charity not only gets ever-continuing financial support, but it gets an ever-growing amount! In time, this results in more money for the charities than if we transferred 100% of the interest to them.

We encourage people to do both: support charities now AND support their futures. When you support charities directly, they will spend your money directly. The difference with Give For Good is that with us, your one-time donation results in a stable income for the charity year in, year out. Many charities are not allowed to invest money like this themselves as a source of income (only as a reserve), because of government regulations. Also, practically, they generally do not offer the option to label your donation as an investment. That is why Give For Good exists! 

What people say about Give For Good

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Set up a Named Fund for your favorite charities via Give For Good and give them a gift that keeps giving: a donation that generates interest for them every year!

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