For SweepsForACause, every sweepstakes has a slightly different grant / revenue allocation structure, due to the following guidelines which may be modified for specific sweepstakes based on the prize, prize size or source. Here is how our allocation system works:
- Giving Forward, the nonprofit that runs SweepsForACause retains Twenty Percent (10%) of the net donated funds after we pay for merchant services (credit card, Cryptocurrency conversion, or banking fees) which are usually approximately 3% of gross donation. We also subtract any direct expenses related to the prize or marketing or administration of each specific sweepstakes on a pro-rata basis, spread across all the donations across all causes.
- Each sweepstakes has a default nonprofit cause. The prize provider selects the default for each sweeps. The default nonprofit cause receives a grant or allotment of Ten Percent (10%) of net donations collected for the specific sweepstakes.
- Entrant / Donor Selected Nonprofit cause “Grantee”: Donor/entrant selects a nonprofit or retains the pre-selected nonprofit cause. Some donors are presented with one nonprofit because a nonprofit or a supporter of a nonprofit instructed our platform to merchandize / display one nonprofit with a small link to allow that choice to be reset. That nonprofit or its supporter uses that link because they have a strong preference that they be selected as the Grantee. The Grantee nonprofit receives a grant of Eighty Percent (80%) of net donation value.
This is how donations are allocated across nonprofits, and encourages prize providers to donate prizes because when their prize (product, trip or service bundle) is converted into a sweepstakes they control #2, the default cause, assuring their cause gets some of the donation even when the entrant selects a different cause. Often entrants will keep the default cause in-place resulting in 90% of net donation going to the default cause.