Question 1

What is impact investing?

Accepted Answer

Impact investing means deploying capital into ventures that aim to generate both financial returns and measurable social or environmental benefits. With CataCap, your donation fuels businesses solving real-world problems – all while your funds grow inside the charitable ecosystem.

Question 2

Why should I choose impact investing through CataCap over making a traditional donation?

Accepted Answer

When you donate through CataCap — via DAF, foundation, or direct contribution — your funds are pooled and invested into for-profit impact ventures or funds. Unlike traditional platforms that require $25K+ minimums, CataCap enables investing from $250. Returns flow back to your donor account, where they can be reinvested or granted out, creating a lasting impact cycle. CataCap helps your donation do more. Instead of being used once, your donation is invested into scalable solutions like clean tech or inclusive finance. Returns stay in your donor account to support future causes – so your gift keeps working. You support innovation, maintain philanthropic intent, and expand your impact with each reinvestment.

Question 3

What are the tax benefits of making investments as a donation through CataCap?

Accepted Answer

When you donate to make impact investments through CataCap, you gain several tax advantages: Immediate Deduction: Your full donation is tax-deductible at the time of contribution. Tax-Free Growth: Any investment returns grow tax-free inside your donor account. No Tax Reporting: No K-1s or capital gains to track – just one initial receipt. Reinvestment or Grants: Returns can be reinvested into other impact ventures or granted to charitable causes. In short, investing through CataCap via a donation offers significant tax benefits, eliminates ongoing tax reporting, and allows capital in the charitable endowment to grow tax-free, all while supporting impactful businesses and charitable causes.

Question 4

How is it possible to make an investment with a donation?

Accepted Answer

Because you're donating to a 501(c)(3), you're not the investor — CataCap is. This allows your donation to fund for-profit impact ventures without needing to be accredited or navigate securities rules. Any returns flow back to your donor account, not your personal bank account.

Question 5

Is using CataCap a charitable donation or an investment?

Accepted Answer

Legally, it’s a charitable donation to the CataCap, a 501(c)(3) that runs CataCap. Those funds are then used to make impact investments into social and environmental ventures. Returns generated come back to your CataCap donor account to be reinvested or granted out – extending your impact over time.

Question 6

What are the CataCap fees?

Accepted Answer

CataCap is built to make impact investing accessible – even at small amounts – by pooling donations and minimizing costs. CataCap charges no fees to ventures receiving investments. All fees support donor services, compliance, and long-term platform sustainability as a nonprofit. Here’s how fees work: All payment types include a CataCap platform fee of 1.25% per year, pre-deducted for the first 4 years (totaling 5%). Then the fees vary depending on your payment type. The rates: Credit card donations: Our credit card fees are 2.2% of the total + $0.30 transaction fee. Bank (ACH) transfers: 0.8% per transaction for standard settlement timing, max $5.00; $1.50 per instant bank account validation. All fees are taken from your donor account balance – not your tax deduction. Your full donation amount is tax-deductible at the time of giving. Would you like help or additional details, or to have your own desired donation calculated for fees? Contact us at support@catacap.org.

Question 7

What's a donor advised fund (DAF)?

Accepted Answer

A Donor-Advised Fund (DAF) is a charitable account that lets you make a tax-deductible donation, then recommend how those funds are granted out over time. Think of it as a flexible, low-cost alternative to a private foundation – with fewer administrative burdens. With CataCap, you can use your DAF to recommend grants into impact investments. Your DAF provider sends the funds to the CataCap, which then invests in vetted ventures listed on CataCap. Any returns are credited to your CataCap donor account, where you can reinvest or grant to other nonprofits – amplifying the impact of your original donation.

Question 8

Can I use my DAF or foundation to do impact investing?

Accepted Answer

Yes! Your donor-advised fund (DAF) or foundation can recommend grants for impact investing on CataCap – just like any other charitable grant. While most DAF capital today is invested in traditional markets (often misaligned with values), CataCap allows you to redirect those funds toward vetted impact ventures. You get the same tax benefits while the funds are invested in companies that align with your mission and can generate returns to be reinvested or granted out again – amplifying your impact.

Question 9

What is the minimum donation or investment amount on CataCap?

Accepted Answer

$250 is the standard minimum for impact investments on CataCap. If a campaign hasn't yet raised $50,000, the minimum is $2,500. Once the $50K threshold is crossed, all donors can participate from $250 and up.

Question 10

Does CataCap also accept donations made from other methods, e.g., stock, crypto or other assets?

Accepted Answer

Yes. Please see our payments page for details, or else reach out to support@catacap.org with your intended donation medium. Our team is glad to work with you.

Question 11

Does CataCap allow direct donations, or can I only make grants from foundations or donor advised funds (DAFs)?

Accepted Answer

You can do either. Direct donors can be given via credit card or bank transfer. DAF/foundation donors can recommend grants as usual. All funds go through the CataCap, keeping your donation tax-deductible and eligible for impact investment via CataCap.

Question 12

Can I take my money back after making a charitable donation for an investment?

Accepted Answer

No. Donations are irrevocable once made – but they can continue to work for the world. Any returns from the investment are credited back to your CataCap donor account. You decide how to allocate them: reinvest in new ventures or funds, grant to nonprofits, or send back to your DAF.

Question 13

Can I use a credit card or bank transfer (ACH) to make a tax-deductible donation to CataCap?

Accepted Answer

Yes. You can donate directly via credit card or bank transfer (ACH). All donations go to the CataCap (a 501(c)(3)), making them fully tax-deductible. Your donation is then invested into impact ventures or funds, and any returns flow back to your CataCap donor account – not your personal account – to reinvest or grant again for more impact.

Question 14

What are the steps to recommend an impact investment using a grant from my DAF or foundation through CataCap?

Accepted Answer

First navigate to your desired investment to support on the CataCap platform, then follow your DAF or foundation payment instructions. Include the following details when you arrange your grant: Donation Recipient: CataCap Project Name: CataCap – [Insert specific project name] EIN: 86-2370923 Email: support@catacap.org Address: 3749 Buchanan St Unit 475207, San Francisco, CA 94147

Question 15

How can I support a business with a tax-deductible donation through CataCap?

Accepted Answer

When you contribute through CataCap, your donation goes to the CataCap, a 501(c)(3) public charity. CataCap then invests those funds into for-profit ventures that deliver measurable social or environmental impact. You’re not investing personally – you’re recommending a charitable donation to be used as catalytic capital. If that investment generates returns, those funds come back to your CataCap donor account, where you can reinvest in new ventures or grant to any nonprofit, foundation, or DAF of your choice. It’s a way to use your giving to fund innovation and scale impact – while staying fully within the charitable ecosystem.

Question 16

What happens after I make an investment recommendation on CataCap? Or, why are my recommendations marked as Pending?

Accepted Answer

Your recommended allocation is held until the campaign reaches its funding goal. Then it’s invested alongside others into the selected venture or fund. As returns come in, they’re credited to your CataCap donor account.

Question 17

What is matching on CataCap?

Accepted Answer

Matching is when CataCap has a generous sponsor who doubles the contribution made to certain investments. If you donate to invest in a fund that has matching, you'll see alerts on the investment pages. Then, after your donation is complete, the matching will be added to the investment.

Question 18

What is fee coverage on CataCap?

Accepted Answer

A few investments generously cover the CataCap fees for their Donor Investors. If you donate to invest to a fund with fees covered, you will see a notification on the payments page.

Question 19

What element of risk is involved with impact investing?

Accepted Answer

Impact investing carries a dual profile – balancing social/environmental impact alongside financial return. Risk varies by investment type and typically falls into three categories: Financial risk: Returns may be market-rate, below-market, or delayed depending on the instrument Liquidity risk: Capital may be tied up short or long-term depending on the investment structure Mission risk: The organization may outperform or underperform its social and environmental goals On CataCap, you can evaluate any investment before making a commitment, including its mission, vision, pitch deck, and full terms. Simply navigate to the investment, sign in, and review the Terms tab, including the Investment Type field. As a general rule, debt instruments tend to carry lower liquidity risk than equity investments, yet both involve varying levels of risk across all three components above.

Question 20

How often are returns given on CataCap?

Accepted Answer

Return frequency depends on the investment structure, as applicable in the terms: Equity investments: Returns are distributed when a liquidity event occurs (e.g. exit, secondary sale, or buyback) Open-ended/rolling debt funds: Returns are monitored and distributed bi-annually Debt instruments & PRIs: Returns are distributed annually When a repayment or liquidity event occurs, proceeds flow back to the CataCap 501(c)(3) and are credited to the donor's individual CataCap account as charitable capital. From there, funds can be redeployed into new investments on the platform or directed toward other charitable purposes. Returns are given twice yearly and associated with the type of investment. To know the type of investment on CataCap, navigate to any investment, then - signed in with your user account - review the Terms tab, Investment Type field.

Question 21

Is the tax deduction for a charitable donation available outside of the USA?

Accepted Answer

No, as CataCap is a nonprofit in the USA.

Question 22

What is a Group?

Accepted Answer

A Group is a community of donors – led by a person or organization – who collaborate to fund a shared portfolio of impact investments. Groups can be thematic (e.g., climate tech), geographic (e.g., Appalachia), or relational (e.g., alumni networks or employee giving circles).

Question 23

What does a Group Leader do?

Accepted Answer

A Group Leader mobilizes their network to channel capital into mission-aligned investments. You don't manage the investments themselves – you curate opportunities, rally supporters, and help your group fund solutions that matter to you.

Question 24

What is the difference between a Group Leader and the Investments they help curate?

Accepted Answer

Group Leaders are champions – they bring people together around a shared cause or theme and guide where their group's charitable capital flows. They do not manage the underlying businesses. Investments are the companies or funds being funded. These are run by separate founders or managers responsible for operations and outcomes. Think of it this way: the Group Leader is the organizer, the Investment is the recipient.

Question 25

What is the criteria to be a Group Leader?

Accepted Answer

A Group Leader is anyone with a strong network and a clear mission. Group Leaders include: Individuals passionate about a cause Foundations or donor collaboratives Corporations organizing employee giving Advisors guiding clients into purpose-driven capital All you need is a commitment to raise at least $50K across one or more ventures.

Question 26

Are Group Leaders only people?

Accepted Answer

No. Group Leaders can be individuals, companies, or organizations. For example, some companies organize employee giving groups through CataCap. This lets them: Support mission-aligned impact ventures Engage employees with values-based investing Recycle returns into future philanthropy Offer upfront tax-deductible giving Any person or group with a purpose and a network can lead a Group on CataCap.

Question 27

What motivates a company or fund to accept investment capital from CataCap or other charitable endowment structures (like DAFs or foundations)?

Accepted Answer

Because it’s aligned, flexible, and underused. CataCap connects ventures with capital from a $2 trillion pool of philanthropic funds – most of which isn’t currently invested for impact. This kind of capital offers key advantages: Patient and values-aligned: No pressure for fast exits or inflated returns Higher risk tolerance: Donors already received a tax benefit, so they’re focused on outcomes – not personal gain Mission-first structure: Terms can prioritize purpose over profit, helping you stay true to your impact goals

Question 28

Do you have an example of a Group Leader on CataCap?

Accepted Answer

We do! Check out Empower Her, doing fabulous work to support female-led impact businesses.

Question 29

Will CataCap support me as a Group Leader?

Accepted Answer

Yes! The CataCap team will provide support to you through best practices and tools.

Question 30

How does one become a Group Leader?

Accepted Answer

CataCap has details on how to engage as a Group Leader. Thanks for your interest!

Question 31

How does CataCap define an 'Investment'?

Accepted Answer

An Investment on CataCap is any company or fund that accepts capital from philanthropic sources to drive measurable social or environmental impact. While open to a range of sectors, most investments align with core themes like climate solutions, racial equity, gender justice, and poverty alleviation.

Question 32

What is donated capital invested from a charitable endowment, and how is it different from regular angel, VC, or friends and family investors?

Accepted Answer

Donated capital comes from DAFs, foundations, or nonprofits. It's already been given for charitable purposes – so it's not seeking personal financial return. Here's how it differs from traditional investment capital: Mission-driven: Prioritizes social or environmental impact over financial upside Tax-advantaged: Donors already received a tax deduction, so the focus is impact Patient and flexible: No pressure for fast exits or high IRRs Higher risk tolerance: More open to early-stage or unconventional ventures For founders, this is catalytic capital that’s often more aligned and accessible than traditional VC.

Question 33

What are the expectations for donated capital that is invested in impact companies or funds?

Accepted Answer

Donated capital is best suited for ventures with clear, measurable social or environmental impact. While financial returns are welcomed, the primary goal is positive change. Typical investments include: Climate and clean tech solutions Circular economy and waste reduction models Female- or BIPOC-led businesses Companies focused on underserved communities CataCap prioritizes ventures that are mission-aligned, impact-focused, and capable of meaningful systems change.

Question 34

What are the expected investment terms on CataCap and how are they determined?

Accepted Answer

CataCap invests using the same terms as other participants in a funding round. This can include: Equity (including SAFEs or convertible notes) Loans or revenue participation agreements Other standard structures used in venture or private investments What makes CataCap different is not the structure, but the source and intent of the capital: it’s donated, not personal, so there’s no pressure for fast returns or liquidity. The goal is to support ventures that deliver real, long-term impact.

Question 35

How are investments handled and how is this reflected on the cap table?

Accepted Answer

CataCap aggregates many small donations into a single investment. Instead of dozens of individual names, only one entity – CataCap – appears on your cap table or loan agreement. This offers key benefits: Simplicity: One line on your cap table, one set of documents Compliance: No issues with unaccredited investors – CataCap is a qualified institutional investor Efficiency: Access to diverse donor capital without added admin or complexity CataCap expects financial returns where applicable, but donors are impact-first. Clear social or environmental outcomes matter most. Metrics can be customized and reported over time to demonstrate progress.

Question 36

Who are the most effective audiences to approach for philanthropic capital through CataCap?

Accepted Answer

CataCap is a strong fit for: Investors who passed They liked the mission but declined due to risk or return concerns. Pitch: "Support us through a tax-deductible donation or DAF grant via CataCap." Current investors who want to do more They want to increase support without using personal capital. Pitch: "Use DAF or foundation funds to amplify your investment." Cause-aligned donors They already give in your issue area (e.g., climate, equity). Pitch: "This channels your giving into scalable solutions, not just programs." Smaller-scale donors They’re curious but not ready for a large check. Pitch: "Start at $250 using charitable dollars – low barrier, high impact."

Question 37

Is CataCap a charity or an investment?

Accepted Answer

CataCap is a charitable platform. Donors make tax-deductible contributions to the CataCap (a 501(c)(3)), which then invests those funds in impact-driven ventures. Although the funds are used to make investments, this is not a personal investment – donors do not receive financial returns directly. Instead, all returns are reinvested for future philanthropic impact.

Question 38

As an Investment Owner, what are the legal requirements for doing outreach on my investment?

Accepted Answer

You should continue following the same legal rules you would follow for any fundraising. Nothing about this changes because of CataCap. The three main rules: You may only pitch your investment to accredited investors, and only in one-on-one conversations. That means you can't post about the opportunity on social media, send mass emails, or share your investment link broadly. For anyone who doesn't fit that category (or where you're not sure), point them to CataCap's "Explore Investments" page instead. There, they can support your opportunity - alongside every other one - through a tax-deductible donation. If you're reaching out to someone individually, you're welcome to share your investment link directly and make a direct request for a donation.

Question 39

What are the fees for Donors on CataCap?

Accepted Answer

CataCap makes impact investing accessible by pooling donations – from $250 to over $1M – and passing on institutional benefits. Fees are: Credit card donations: Our credit card fees are 2.2% of the total + $0.30 transaction fee Bank (ACH) transfers: 0.8% per transaction for standard settlement timing, max $5.00; $1.50 per instant bank account validation. CataCap platform fee: 1.25% per year, prepaid for four years (totaling 5%) All fees are deducted from the donor account – not the tax-deductible amount. Donors receive a receipt for the full donation amount at the time of giving.

Question 40

Why do I need $50,000 in commitments before my campaign goes live?

Accepted Answer

$50,000 is the minimum CataCap needs in order to make a disbursement to your venture. Reaching it before we accept real donations does two important things: it confirms there is enough aligned support to actually fund you, and it protects your donors &mdash; no one has money sitting in limbo waiting on a campaign that may never reach the threshold. Once you have built your first $50K in commitments, we launch your campaign and begin accepting donations.

Question 41

Is there a time limit to reach the $50,000 minimum?

Accepted Answer

No. We used to run a 90-day clock, but with the new Soft Circle page there is no deadline. Your page can stay up as long as you need while you gather early commitments at your own pace. The moment you reach $50K in commitments, your campaign can go live on CataCap and start accepting donations.

Question 42

What is a Soft Circle page and why does it matter?

Accepted Answer

Your Soft Circle page is a dedicated page where your earliest supporters, champions, and believers can make a non-binding commitment to donate-and-invest in your venture &mdash; before you publicly launch. It lets you build momentum and credibility, line up your lead donors, and reach the $50K threshold with confidence. No money changes hands at this stage; commitments become real donations only once your campaign launches.

Question 43

What happens to my donors' money while I'm building toward $50K?

Accepted Answer

Nothing, and that is the point. Soft Circle commitments are pledges, not payments. No donor is charged and no funds sit waiting while you build toward the minimum. Donations are only processed after your campaign goes live, so your supporters' capital is never tied up in limbo.

Question 44

How does matching work on CataCap?

Accepted Answer

Some Investment Owners/ Donor Investors on CataCap add funds so that any donation is doubled in impact. For example, we've had matching campaigns wherein any new Donor Investor who contributes to a women-led investments receives a 1:1 match. This allows impact investments to scale. If you are interested in setting up a match campaign, please reach out to support@catacap.org .

Question 45

How does fee coverage work on CataCap?

Accepted Answer

Some Investment Owners want to cover the CataCap fees for their Donor Investors. If you are interested in setting up a fee coverage campaign, please reach out to support@catacap.org .

Question 46

What are disbursal requirements?

Accepted Answer

CataCap supports disbursal once an Investment has cumulatively reached a minimum of $50,000 in commitments (net of platform and processing fees). At that point, Investment Owners have the following options: Disburse the first $25,000+: Take a partial disbursal and move the investment into private mode to continue the fundraising on CataCap. Disburse $50,000+: Take the full amount and close the investment Subsequent disbursements: Once the $50,000 minimum is met and disbursed, additional disbursals are available in $25,000+ increments.

Question 47

What are the phases of an investment on CataCap?

Accepted Answer

Investment campaigns on CataCap advance through three phases based on funding thresholds: Phase I – Soft Circle: Gather $ 50,000 in pre-commitments or pledges from your network. Once this threshold is reached, your campaign is activated and officially launches on CataCap. Public Launch: The $50,000 milestone unlocks your campaign on the Explore Investments page, where pledges are converted into charitable donations invested in your venture. Disbursement Phase : Once a minimum of $50,000 net (after platform and processing fees) is raised, you may submit a disbursement request. Subsequent disbursements are available in $25,000 increments. Processing typically takes 10–15 business days . All disbursements are visible on Completed Investments .

Question 48

What exactly is a "fund" on CataCap?

Accepted Answer

We use the word in two different places, so it's worth clarifying. On Explore Investments, the "Fund" category refers to a single venture or strategy you can invest in directly. A Multi-Donor Fund is different — it's a Multi-Donor Fund your community contributes to together, and then collectively directs into one or more of those investments (which may themselves be ventures, funds, or nonprofits).

Question 49

How much time will this actually take?

Accepted Answer

Setup is about 5 minutes. Most of the ongoing work is just rallying your community around the cause and saying yes to deals you believe in. CataCap does the operational and financial heavy lifting — no spreadsheets, no admin, no chasing paperwork.

Question 50

Do I need any finance, legal, or fund-management background?

Accepted Answer

Not at all. You don't have to be a fund manager — you just need a community that cares deeply about an issue. We've built every step so anyone with conviction and a network can move real capital toward the impact they want to see, without specialized expertise.

Question 51

Do members get a tax deduction?

Accepted Answer

Yes. Every contribution to your Multi-Donor Fund flows through CataCap's 501(c)(3), so donors get an immediate, full tax receipt — same as a DAF or direct charitable gift.

Question 52

What does it cost to run a Multi-Donor Fund?

Accepted Answer

There's no setup fee. CataCap takes a small platform fee on activity (covered transparently up-front) — no monthly minimums, no fund formation costs, no admin retainers.

Question 53

Who can start one?

Accepted Answer

Any community organizer, network lead, alumni group, family office, founder collective, faith group, regional chapter — anyone with a community that wants to invest together for impact.

Question 54

Can the fund support both for-profit ventures and nonprofits?

Accepted Answer

Yes. CataCap supports impact-driven for-profit ventures and nonprofits side-by-side, so your fund can mix grants and investments freely.

Question 55

Can I see a real example?

Accepted Answer

Empower Her Fund 2 is a live Multi-Donor Fund powering women-led ventures — stood up in minutes, no fund admin required.

Question 56

Is this gift tax-deductible?

Accepted Answer

Yes. Your gift is a charitable donation to CataCap, a 501(c)(3), to fund each recipient’s CataCap account. Gifts may be tax-deductible for eligible donors; deductibility depends on your circumstances and funding method and is not guaranteed. Consult your tax advisor. Recipients can use their accounts to recommend investments in women-led ventures, clean technology, BIPOC-led ventures, and other for-profit ventures aligned with what they care about. When investments generate returns, their accounts can grow and support even more good in the world.

Question 57

Will my recipient receive cash?

Accepted Answer

No. The gift provides charitable capital through CataCap; it is not cash the recipient can withdraw or spend personally. The recipient can choose which causes and investment opportunities the charitable capital supports.

Question 58

How can I fund the gift?

Accepted Answer

You can give through a donor-advised fund or foundation, or contribute stock, cash, make a bank transfer or card payment, or use cryptocurrency. Contact CataCap if you want to use another asset.

Question 59

How and when does my recipient receive the gift?

Accepted Answer

Choose a planned delivery date for a holiday, birthday, graduation, or another occasion. After funding, CataCap prepares a personalized invitation for you to send, or a link for you to share in person. CataCap does not send the initial invitation on your behalf.

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