Massive wealth transfer has occurred over the last decade. A $2.6T asset class was created from lines of code. Digital assets have changed our lives for the better and we are all privileged to be a part of it. Now it’s time to be a part of something bigger by paying that privilege forward.
Meet Angel Protocol — where you give once, give forever.
By the numbers.
Before I introduce you to the protocol, I want you to consider some eye-opening numbers about non-profits in the US.
- 7-8% are technically insolvent
- 30% face potential liquidity issues
- 50% have less than one month of operating reserves
Non-profits in the US are highly dependent on new donations and are financially vulnerable. This creates an environment where the core mission of the charity can be compromised. As someone who strongly believes in giving back, this has to change.
Introducing Angel Protocol.
Angel Protocol is disrupting the outdated charity model by creating a sustainable donation platform for the Terra community.
By leveraging the best financial tools (DeFi) in the world today, Angel can provide sustainable, influence-free money into the hands of charities … forever.
Here’s how Angel is connecting donors to charities and empowering charities with financial freedom.
For Charities.
Any charitable organization can create its own endowment directly on Angel’s platform, with no onboarding costs or setup fees. All that is needed is a Terra wallet address.
If you’re not familiar with what an endowment fund is, and would like a short intro before diving into Angel Protocol, here we go…
An endowment fund is an investment fund established by a foundation that makes consistent withdrawals from invested capital. The invested capital typically comes from donations that are deductible for the donors and are used for specific purposes.
Pretty simple, right? Let’s see how it works with Angel Protocol.
Let’s say you want to donate $100 to a charity with $20 donated immediately to the charity and the other $80 being locked into a perpetual endowment. In the first year, the endowment would generate $16 in yield by utilizing Anchor’s attractive 20% APY.
Each year, Angel will donate 75% of the yield to the charity and lock the remaining 25% into the perpetual endowment. In the example above, the charity would receive $12 while the additional $4 would be added to the endowment. In the second year, the charity would receive $12.60 while the additional $4.20 would be added to the growing endowment, and so on…
It doesn’t seem like much at first but, as you know, the compound effect adds up quickly (see chart below).
The example above highlights how just one donation can grow into a much larger amount through compounding. When you consider pooled donations at scale, you can see how Angel Protocol offers charities the financial freedom they have been desperately needing.
Give once, give forever. That is the Angel Effect.
For Donors.
Angel Protocol has created a simple platform where donors can easily discover inspirational charities they wish to donate to in just a few clicks.
Currently, there are two ways to donate:
- Fiat currencies — via Terra-native on-ramp partners (Kado, Alice, etc.).
- Terra currencies — via a crypto wallet.
All funds received will be immediately converted to UST and locked in the charities' endowments to compound in perpetuity. It’s truly the gift that keeps on giving.
As a donor, you will also be able to opt-in for passing a light KYC in order to receive a tax receipt and be eligible for tax relief benefits in your country of origin. (Note: This option is currently only available to US donors).
Ready to pay it forward?
The Terra community has rallied around the concept of charitable giving. With upcoming protocols already committed to feeding a percentage of yield to Angel charities (Apollo, Orion, Talis, etc.), Terra is establishing itself as the blockchain for charity.
Start giving today: www.angelprotocol.io
