When you spend full days inside a system, its architecture seems straightforward and logical. But that might not be the case for people on the outside looking in.

This article sheds light on Give Lively systems, providing clarity about some of the less evident ways we are structured.

Why are there two Give Livelys?

There are two independent but related parts to Give Lively: Give Lively LLC and its partner charity, the Give Lively Foundation.

Give Lively LLC is a limited liability company that builds and supports powerful and practical fundraising solutions that are free for nonprofits and intuitive for donors. It is the values-driven company most nonprofits and donors know and interact with, committed to delivering every donated dollar generated by a nonprofit through our platform to that nonprofit for its mission.

The Give Lively Foundation works in tandem with Give Lively LLC, but the Give Lively Foundation is a separate 501(c)(3) tax-exempt organization (tax ID 81-0693451) that collects charitable contributions and then re-grants them to other 501(c)(3) public charities and private operating foundations across the United States. This is not the same thing as a fiscal sponsor or donor-advised fund; the donations are not invested before making their way to beneficiary nonprofits. Donors and nonprofits that give or receive charitable gifts through Charity Navigator’s Giving Basket will be familiar with the Give Lively Foundation, which powers the Giving Basket along with Give Lively LLC.

But you get your operating funds from the same source?

Yes and no. Both Give Lively LLC and the Give Lively Foundation are beneficiaries of our philanthropist founders’ generosity. Their financial support makes it possible for Give Lively LLC not to charge nonprofits for the use of our platform and for the Give Lively Foundation to re-grant the full value of the donations it manages (from which small third-party processing fees are subtracted).

However, Give Lively LLC also accepts optional tips from donors who support our work and extend the reach and capability of our free products and services. These tips are invested directly back into building, maintaining and improving our platform. 

You say you’re free, but don’t you take a piece of every donation, as many other platforms do?

No, we don’t. We really are free for nonprofits. Neither Give Lively LLC nor the Give Lively Foundation charges for or takes money out of donors’ charitable payments. In fact, we save nonprofits money, having given away more than $100 million in fundraising technology on more $1 billion raised through our platform since our founding. 

In most cases, donations made through the Give Lively LLC platform are disbursed directly to the beneficiary nonprofit; Give Lively LLC does not actually hold, store, transfer or otherwise touch any funds. Only the third-party payment processors, like Stripe or PayPal, charge small fees. 

Differently, when Give Lively is involved in re-granting donations, the funds must first pass through the Give Lively Foundation. For example, this occurs when donations are completed in Charity Navigator’s Giving Basket. That being said, all donated funds are disbursed to designated nonprofits or, if disbursement is not possible because a nonprofit is ineligible to receive funds, they are reallocated to alternative nonprofits. (Read more about the Give Lively Foundation in action.)

What about the Give Lively Foundation’s tax forms, which show substantial revenue?

Tax forms track numbers, not the stories behind them. The Give Lively Foundation is what is called the “merchant of record” for contributions made through platforms like the Giving Basket. This is in accordance with federal tax laws and IRS regulations. It means that the Give Lively Foundation is the legal recipient of donations completed through the Giving Basket, which is most of the “revenue” reflected in the tax papers. 

But that’s not where the story ends. The Give Lively Foundation then re-grants these funds to the donors’ designated nonprofits. The Give Lively Foundation is required by law to distribute those funds; it is not allowed to keep them for itself. On the tax forms, the “grants and similar amounts paid” line of the “Expenses” section is roughly equivalent to revenue because the Give Lively Foundation does not retain what it receives.