How donations through Groundswell are treated for tax purposes

All giving through Groundswell is processed by Groundswell Charitable Foundation (GCF), a 501(c)(3) public charity. There are two ways to give on the platform, and they are handled differently.

Donating directly to a charity

When you choose a charity and pay by credit card or ACH at checkout, your donation is received by GCF and sent to the charity you selected, typically within 24 hours. These funds do not go into your Giving Wallet or any donor-advised fund. You do not keep a balance, receive account statements, or have any ongoing ability to redirect the money. GCF retains the discretion and control over donated funds that the law requires of every public charity, and uses it only to deliver your donation to the charity you chose or, if that isn’t possible, to follow our stated policy for undeliverable donations.

These donations are contributions to a public charity, not to a donor-advised fund.

Adding funds to your Giving Wallet

When you add money to your Giving Wallet, you are contributing to a donor-advised fund sponsored by GCF. Those funds are an irrevocable gift to GCF, held in an account associated with you. You can recommend grants to eligible charities from that balance at any time, and GCF reviews and approves each recommendation.

Contributions to your Giving Wallet are contributions to a donor-advised fund.

Why the distinction matters starting in 2026

Federal tax rules that took effect for the 2026 tax year allow some taxpayers who do not itemize to deduct a limited amount of cash donations made to public charities. Under those rules, contributions to a donor-advised fund do not qualify for that deduction, while donations made directly to a public charity may.

If you expect to claim that deduction, you may want to donate directly to charities through Groundswell rather than adding funds to your Giving Wallet. Your year-end tax receipt from GCF will list direct donations and Giving Wallet contributions separately so you and your tax advisor can see each.

A note on tax advice

Groundswell and GCF do not provide tax advice. Whether and how much you can deduct depends on your individual tax situation. The treatment of online giving platforms under the new rules is still being clarified by the Treasury Department, and Groundswell is working with other platforms to seek that guidance. Please consult a tax professional before making decisions based on deductibility.