The good news: $400 billion is donated to nonprofit organizations every year.
The bad news: $4 billion of that—roughly 1%—never makes it to the organizations because of transaction fees. Losing 1% of a donation may not sound like much, but the $4 billion meant for nonprofit organizations in 2017 was enough to cover the combined operating expenses of the United Way, the Salvation Army, St. Jude’s Research Hospital and the Metropolitan Opera—with more than $2 billion to spare.
But with Encast, everything that is given, is given away. Encast is a cloud-based system built on top of the Dwolla Platform designed to make it easier for employers to offer their employees a way to donate. With predictable pricing that doesn’t charge a per transaction fee, Encast uses Dwolla’s ACH payment API to facilitate ACH transfers to more than 1.8 million nonprofit organizations within its database.
Employees using Encast can set aside money from each paycheck—similar to setting up an automatic contribution to a 401(k)—and choose which nonprofit organization to donate to.
“I believe it’s wrong that when someone makes a donation to a nonprofit, money is taken away from the nonprofit’s pockets,” says Leo Ramirez Jr., Co-Founder of Encast. “Luckily, Dwolla has this fee-free mechanism on the transaction side that allows us to meet our promise of never charging transaction fees to nonprofits.”
Dwolla allows Encast to offer donations with no transaction fees and is an upgrade from the manual spreadsheet they were using to manage donations.