CataCap provides a unique and accessible platform for impact investing, whether you’re using a Donor Advised Fund (DAF), a foundation, or direct charitable contributions. While many DAF sponsors and foundations require minimum investments of $25,000 or more, CataCap allows you to make impact investments at a “micro” level with as little as $250 per deal or fund. This makes it easy for you to diversify into a customized portfolio of impact investments, regardless of the size of your donor account or foundation.

With CataCap, you can manage a portfolio of meaningful, mission-driven investments at a much lower entry point. For a similar expense ratio to what you’d pay for a $1M DAF or foundation doing $100,000 investments, you can leverage CataCap to create a personalized impact portfolio with smaller individual contributions. This flexibility allows you to align your charitable and investment goals without the high barriers typically associated with large foundations, DAFs, or direct charitable contributions.

On CataCap, it is both possible and legal to make an investment with a donation through the Impactree Foundation. Here’s how it works:

When you make a donation to the Impactree Foundation, it qualifies as a tax-deductible charitable contribution. These funds are then managed by the Impactree Foundation, which can use them to make impact investments in businesses that align with its charitable mission. The investment is made by the Impactree Foundation, not by you personally, which ensures compliance with tax and charitable giving laws.

The key difference is that the investment is aimed at advancing a social or environmental cause, with any financial returns flowing back to the Impactree Foundation, not directly to you. These returns can then be reinvested into additional impact projects or granted to other charitable organizations. This structure allows you to support impactful businesses while continuing to grow your charitable capital, all while maintaining the legal benefits of your donation to the Impactree Foundation.

A Donor Advised Fund (DAF) is a charitable giving vehicle that allows you to make a tax-deductible donation and recommend how those funds are distributed over time to qualified nonprofit organizations or impact investments. Essentially, it’s like having a personal Foundation through which you can support causes that matter to you while benefiting from an immediate tax deduction when you make the original donation to create the DAF.

When you use a DAF to fund your investments on CataCap, your contributions are held by Impactree Foundation, and you can direct those funds into impact investments listed on the CataCap platform. These investments focus on businesses that create measurable social or environmental benefits, aligning with your charitable goals. Any returns from these investments flow back to your CataCap account, where they can be reinvested in other impact opportunities or granted to other charitable organizations or back to your original DAF.

This allows you to grow your charitable giving while making a tangible impact through innovative and purposeful investments.

Your Donor Advised Fund (DAF) is already making investments and earning returns to grow your DAF, but most of those proceeds are likely being invested in basic mutual funds, managed accounts, or possibly green funds that may not have significant real-world impact. CataCap offers you the opportunity to direct those funds into investments that make a meaningful difference in the areas you care about most, while still growing your DAF.  The best part is, it’s as simple as making a charitable donation from your DAF just like you do any other donation.

Here’s how you can use your DAF to make an impact investment through CataCap:

1. Log in to Your DAF Provider: Access your DAF account through your provider’s platform.

2. Request a Grant: Request to make a grant to the Impactree Foundation in support of the CataCap project.

3. Include the Following Details:

   • Donation Recipient: Impactree Foundation
   • Project Name: CataCap – [Insert specific project name]
   • EIN: 86-2370923
   • Email: support@impactree.org
   • Address: 3749 Buchanan St Unit 475207, San Francisco, CA 94147

By directing your DAF investments through CataCap, you can combine financial returns with real social or environmental impact. You’ll continue to grow your DAF while contributing to projects that align with your values, creating a lasting positive impact. Thank you for your support!

When you make a contribution to the Impactree Foundation to fund investments on CataCap, it qualifies as a tax-deductible donation because the funds are directed to the Impactree Foundation, a 501(c)(3) public charity. The Impactree Foundation then uses these funds to make impact investments in businesses that align with its charitable mission.

This structure allows you to recommend investments through CataCap into for-profit businesses that create measurable social or environmental impact and financial returns, while still benefiting from the tax deduction. The key difference is that the investment is made by the Impactree Foundation, not directly by you. Any financial returns from these investments flow back to the Impactree Foundation, which are reflected in your CataCap account, allowing you to make additional investment recommendations into other impact-driven ventures or allocate them to charitable causes.

In short, you’re making a tax-deductible donation to a nonprofit, which then invests in businesses aligned with philanthropic goals—providing both financial returns to the nonprofit and meaningful societal impact.

After you make an investment recommendation as a donor/investor on CataCap, your recommendation is held as pending until the fundraising goal for that specific investment is met. Once the goal is reached, the investment receives the aggregate funds from all participating investors on the platform, and your pending investment is shifted to an active investment.

As the investment generates returns, those proceeds are credited back to your CataCap account. From there, you can choose to reinvest the funds into new impact opportunities or direct them to charitable causes that align with your mission. CataCap keeps you updated throughout the process, ensuring transparency and visibility into the status of your investments.

When you make an investment through CataCap using a donation to the Impactree Foundation, you gain several tax advantages compared to investing directly:

1. Immediate Tax Deduction: By donating to the Impactree Foundation, you receive an immediate tax deduction for the full amount of your contribution. This qualifies as a charitable donation under IRS rules, unlike direct investments in for-profit businesses.
2. Tax-Free Growth: The capital you donate is invested by the Impactree Foundation in socially or environmentally impactful businesses. Any returns on these investments flow back to the Foundation, growing tax-free. If you were investing directly, you would need to pay taxes on any gains or income.
3. No K-1s or Investment Documents: Unlike direct investments, which require tax reporting, K-1 forms, and tracking investment documents, making a donation through the Impactree Foundation eliminates the need for any ongoing tax reporting after the initial donation. Once you make the donation, your tax obligation is settled, and there are no further tax documents to manage.
4. Reinvestment or Grants: The returns generated by the investments can be reinvested into other impact ventures or granted to charitable causes, continuing the philanthropic cycle. Direct investments return capital to the investor, usually without any charitable tax benefits.

In short, investing through CataCap via a donation to the Impactree Foundation offers significant tax benefits, eliminates ongoing tax reporting, and allows your capital to grow tax-free, all while supporting impactful businesses and charitable causes.

CataCap allows both direct donations and grants from Foundations or Donor Advised Funds (DAFs). If you prefer to make a direct donation, you can contribute via credit card or bank transfer to the Impactree Foundation, which manages the investments on the platform. A tax-deductible receipt will be provided for all direct donations. Alternatively, if you have a DAF or are working through a foundation, you can recommend grants to the Impactree Foundation to support specific impact investments. Both options give you flexibility in how you engage with CataCap’s projects, ensuring your contributions support ventures aligned with your charitable goals while providing the appropriate tax benefits.

The minimum donation or investment amount on CataCap is as little as $250. This low threshold allows you to participate in impactful investments without the large upfront commitment often required by traditional investment platforms. By donating through the Impactree Foundation, you can direct even small amounts into a diverse portfolio of social and environmental impact ventures, making it easy to align your charitable giving with your financial goals while still contributing meaningfully to causes you care about.

Once you make a charitable contribution to the Impactree Foundation to fund an investment, you cannot take your money back, as it qualifies as a tax-deductible donation. However, any returns generated from the investments are credited back to your CataCap account and can be used to continue supporting impact-driven initiatives. You have the flexibility to recommend that these returns be granted out to other nonprofits or foundations of your choice, ensuring that the proceeds from your investment continue to make a positive impact. While the initial donation is irrevocable, you maintain influence over how the returns are distributed, allowing your charitable goals to evolve as the investments grow.

CataCap has negotiated deeply discounted fees, similar to those offered to multi-million dollar foundations. We are proud to pass these savings on to all our users, providing access to premium services typically reserved for larger organizations.

Here is the fee structure for donations and investments:

• Credit Card Donations: A 4% processing fee applies to all credit card donations.
• ACH Payments: A 2.55% fee applies to ACH payments, with a cap of $25. These fees are deducted from your CataCap balance.
• CataCap & Investment Management Fees: A 5% fee (1.25% per year for 4 years, billed upfront) covers investment advisory services.

Please note that tax-deductible receipts are issued for Credit Card and ACH/Bank Transfers at the original donation amount, before any fees are deducted.