The Universal Impact Pool: One Year of Democratizing Philanthropy
By Endaoment
Last June, we launched the Universal Impact Pool (UIP) in collaboration with Gitcoin, as part of our mission to revolutionize charitable giving with emerging technologies. Today, as we mark its first anniversary, we're seeing tangible evidence of how this approach is democratizing philanthropy.
Over the past year, we’ve seen how the UIP amplifies individual contributions, enables rapid response to emerging crises, and provides sustained support for ongoing challenges.
Let’s explore the ways the UIP is reshaping the charitable giving landscape, making every donation count in ways that traditional models simply can't match.
What is the Universal Impact Pool?
The UIP is a community-driven matching fund that uses quadratic funding (QF) to distribute grants to nonprofits. Unlike traditional models, QF prioritizes the number of contributors over the total amount contributed, fostering a more democratic and equitable allocation of resources, and ensuring even small donations can have a significant impact.
On Endaoment's platform, every gift acts as a vote towards the distribution of matching funds. The UIP operates on a quarterly cycle, granting 25% of its pool every three months to create a continuous stream of giving and impact.
Since its launch last June, the UIP has granted nearly $140,000 to over 500 nonprofits, supporting diverse causes that reflect community priorities. The upcoming round will distribute more than $22,000 to over 90 organizations, further amplifying the impact of recent donations and grants.
Real Impact, Real-Time Response
The UIP swiftly shifts support in response to emerging needs, as demonstrated during the August 2023 Maui wildfires. Donations surged to Maui-based organizations, with the UIP’s quadratic funding model amplifying this response in the following grant round.
For instance, the Hawaii Community Foundation received nine contributions through Endaoment in the immediate aftermath of the fires. This surge in community support triggered an additional $14.9k from the UIP, substantially boosting their capacity to assist in rebuilding efforts.
From supporting education initiatives during back-to-school seasons to bolstering environmental causes around Earth Day, the UIP serves as a barometer of community concerns, and a multiplier of collective action that can quickly mobilize resources to address urgent issues as they arise.
Unlocking Streaming Donations with Nouns
Nouns DAO's 12 ETH funding commitment over 10 years showcases the UIP’s ability to support “streaming donations”– ongoing impact programmatically embedded within communities and protocols.
This collaboration also illustrated how the UIP solves a critical problem in decentralized giving: choosing a single nonprofit or set of nonprofits to support. In many communities, discussions about philanthropic efforts often stall at the decision-making stage, as members struggle to reach a consensus on which causes to fund. This can lead to paralysis and missed opportunities for impact.
The UIP offers a solution by providing a dynamic and equitable platform that reflects the collective priorities of its contributors. By directing funds to the UIP, Nouns has ensured that their contributions will continue to be allocated efficiently and effectively, supporting a wide range of causes, attuned to current needs and community priorities.
We hope to continue empowering communities to support the causes that move them. If you’re interested in learning more, please reach out to partnerships@endaoment.org!
Small Changes, Big Results – Hand in Hand Parenting
Last December, Hand in Hand Parenting made one small change to their website– updating their main donate button to point to their Endaoment donation page. This simple reroute didn’t mention crypto, NFTs, or digital assets, yet it had a profound impact.
Right away, they began to see a steady stream of new donations, each recorded onchain on a their unique Endaoment smart contract. Remarkably, these donations were all cash, processed via credit or debit card, without requiring any crypto knowledge. Just by directing these donors through Endaoment, Hand In Hand has received nearly $20k in additional funding from the UIP.
Fundraising in the Face of Conflict – Crystal Hearts
Another standout example of effective fundraising through the UIP is Crystal Hearts. Dedicated to providing crucial assistance in active war zones, their current focus primarily on delivering aid to frontline areas in Ukraine.
Leveraging our embedded donation frames, which appear as donation buttons when sharing an organization's Endaoment profile on Farcaster, Crystal Hearts creatively engaged the platform's user base and reduced friction in the giving process, maximizing their funding potential from the UIP.
Ripple Effect: Continuing the UIP's Mission
Over the past year, the Universal Impact Pool has leveled the philanthropic playing field. It ensures fairer resource distribution across diverse causes, gives voice to often overlooked communities and issues, and ensures that every contribution counts, regardless of size.
We’re grateful to the Gitcoin and Allo teams for their support and partnership. By combining our onchain donation infrastructure with their quadratic funding models, we created a system that amplifies small donations and offers donors a single endpoint for wide-ranging impact.
As we look forward to another year of the UIP, we encourage you to join in the collective impact. Whether donating directly, voting through your giving activity, or fundraising for your cause, you’ll be contributing to a more equitable and inclusive philanthropic future.
⏰ The UIP’s Q2 distribution round closes June 30! Donate or grant by midnight to boost your favorite nonprofits. Remember, even small gifts can make a big difference.
