Dear Readers of YWN,

I am writing to you because many of you are avid supporters of Charidy campaigns. And I’d like to share some recent, critical steps we have taken toward becoming the most innovative and trusted fundraising service available.

And how you can help in this effort.

You may have noticed that we recently introduced a new concept to our platforms, the “Verified Charidy Matcher,” a designation which represents the new strides Charidy has taken in defining new standards of transparency in the crowdfunding universe.

Let me begin by giving some context and background:

While the corporate and non-profit space share many similarities, there’s a huge contrast between investor and donor commitments. To put it in plain terms, when an individual commits to a business investment, a due process consisting of term sheets, verifications, contracts with deadlines, is put into effect.

Despite the fact that every agreement, verbal or otherwise, has contractual measures which can technically be upheld in a court of law, it’s not common practice for organizations to contract the gifts pledged to them. Non-profits largely rely on an honor system. What this means is that the lack of accountability can result in unpaid pledges, an obvious setback to an organization. Even in a case where commitments are made with the funds, such as the promise of a new building or the hiring of employees and staff, it’s generally not recommended that an organization take legal action, as it will risk never seeing another donation from that person again — or from any other donor, for that matter.

In the crowdfunding space in particular, dishonesty, unfulfilled promises, unmet expectations are quite common and an industry-wide issue. In recent years, many crowdfunding platforms have been hit with a slew of scams, fake campaigns, and misused funds. While platforms do intervene in some cases, most uphold that they are not responsible for the damage and losses incurred.

Others in the industry are doing their best to balance their responsibility to their givers and causes. But Charidy has taken things a step further, actively establishing a “gold standard” of trust in all areas of our platform and service.

In the past, we have implemented a thorough vetting process to ensure that the causes we work with are legitimate and trustworthy. All organizations are required to be registered as a non-profit organization, or the equivalent, in their respective country. If not registered as a 501c3, the organization must be sponsored by one that will take responsibility for the distribution of the funds.

In recent months, we’ve quietly furthered our efforts to increase trust and accountability through added measures of transparency, one of them being the introduction of Charidy Verified Matchers™.

Charidy Verified Matchers fall into two categories. The first is a Charidy Verified Matcher Pledge, in which the matcher signs a pledge letter stating that they will fulfill their pledge within 12 monthsof the campaign date, should the campaign be successful. The second is the Charidy Verified Matcher Escrow, where the matcher places the funds in escrow, and the funds are only processed/released once the campaign goal is met. Additionally, many Matchers give checks to the organization before the campaign starts, to be deposited afterwards. Beginning January 1, 2017, we will be listing each Matcher with their verification level.

Additionally, no matter whether the funds are pledged or in escrow, our new standards require that matchers display their identity, either in the form of a headshot, logo, name, foundation or company the sponsor is affiliated with. Take a look at our most recent campaigns, all of which feature the identities of the matchers according to the above-mentioned criteria.

Furthermore, matcher pledges are a promise that all funds are a conditional pledge. If the campaign goal is met, the matcher agrees to hand over the funds, irrespective of any previous pledges made before or after the campaign.

Charidy has already differentiated itself within the non-profit and crowdfunding world. We are now viewed as a clearing house — a place where you can know that if an organization and matcher are featured on our page, we have taken the most rigorous measures to ensure your funds will be matched and allocated properly to real causes run by real people.

Here’s where you come in.

We do acknowledge that despite Charidy’s thorough vetting process, there will be people who will try to “cheat the system.” Like other platforms, such as GoFundMe and Indiegogo, Charidy will remove all campaigns/users who abuse the platform and donors. If you see a campaign/donation that you believe to be fraudulent, you may report it anonymously to [email protected] and we will open an investigation.

It is my hope and determined goal that our company will continue bettering the world of giving, for our causes, our donors, and our matchers, bridging the gap through trust and transparency.

Moshe Hecht
COO Charidy.com