FAQs for the Yellow Springs, OH Program

What’s the purpose of Gifted Savings?

Our mission is to make the direct giving of wealth the simplest, most efficient and rewarding way to empower people and create diverse positive impacts.

Who is eligible for the Yellow Springs pilot?

In the Yellow Springs, Ohio pilot, recipients must be at least 18 years old, live in Yellow Springs, Ohio, and have a household income within 3 times the federal poverty level.

Who are the donors? Why do they give?

Our donors come from all different backgrounds and walks of life. They give to Gifted Savings because they believe in giving back and empowering people to create opportunities for themselves and their communities.

If you’re interested in becoming a donor or know of someone who may be interested, please reach out to us at [email protected].

What am I allowed to use the gift on?

Once the gift has been fully vested (i.e. you hold the gift for the minimum required time), you can choose to use the funds in whatever way will help you achieve your personal short and long term goals.We work with recipients to define and understand their goals so that they can use the funds in the best ways for them. You can choose to withdraw your funds and cash out, or you can continue holding these gifted investment assets if you believe they might appreciate over time.

How does Gifted Savings work for the Yellow Springs pilot?

Note: We have multiple pilots underway and each has slightly different program design to test different cohorts and programs.

Residents of Yellow Springs, Ohio interested in joining the Gifted Savings pilot must submit an application through the University of Pennsylvania’s Center for Guaranteed Income Research (CGIR). If they are randomly selected to participate, they will be directed to create a Gifted Savings account to complete their registration.

To be eligible for a Gifted Savings account, you must be at least 18 years old, live in Yellow Springs, Ohio, and meet financial need requirements (evaluated based on annual income and number of dependents supported).

Yellow Springs recipients must hold assets (i.e. vest) in their Gifted Savings account for at least 2 years before they can decide how they would like to use the funds. After 2 years, recipients can decide how to use those assets with no strings attached.

To withdraw funds from your portfolio, Gifted Savings sells those assets, and deposits cash into your bank account or sends you a check. Once funds are released, there are no restrictions on how the funds can be used.

When can I cash out my Gifted Savings for the Yellow Springs pilot? Why is there a vesting period?

Wealth typically isn’t built through cash - it’s built by having investment assets that increase in value over the long run.

We’ve deliberately designed Gifted Savings so our donors can give the same kinds of investment assets that they hold.

Our hope is that by giving assets to recipients, we can help recipients grow that gift over the long run and give them access and education into owning investments should they be interested in it.

While we can’t promise any growth in stocks or Bitcoin (no one can predict the stock market), we’d like to give you the opportunity to make your own luck.

How can I withdraw my gift for the Yellow Springs pilot?

You can choose to withdraw via check or direct deposit.

How does Gifted Savings impact my eligibility for government assisted programs?

Taking part in Gifted Savings may change your eligibility for some government benefits. To help you decide if taking part in Gifted Savings is the right decision for you, please read the attached information.

Can I cash out early to cover an unexpected expense?

We know that sometimes life can throw you for a loop, and Gifted Savings has designed around this need through the Emergency Button.

If you need emergency funds before your vesting period ends, you can request an emergency withdrawal up to $500 a year.

Our team reviews emergency requests as soon as possible, and we generally advise that the estimated processing time to get funds sent to your preferred payout method is 1-2 weeks.

How can I get my city or town to participate in UGS?

Submit a Google Form here to indicate your interest.

Does Gifted Savings profit from this?

Gifted Savings is a registered 501c3 nonprofit and does not make a profit.

The core activities of the organization are underwritten by our founder Farhad Mohit.

We work hard to keep overhead low so we can pass 100% of net donations to recipients, with 3rd party transaction costs clearly labeled or paid for by donors.

Is my data being sold?

We do not sell your data. Gifted Savings is a registered 501c3 nonprofit and does not make profit from gifting savings to recipients. We've partnered with Stripe for ID verification.

Stripe utilizes advanced security measures, including encryption, to ensure that your data remains secure. You can read more about how Stripe keeps your data safe here. We’ve also partnered with the Center for Guaranteed Income Research (CGIR) at the University of Pennsylvania to help us carry out independent research about the impacts of the Gifted Savings program.

The partnership commits us by law and academic ethical boundaries to not manipulate, harvest, share or in any manner tamper with the personal data provided to us from program recipients. Furthermore, CGIR is legally bound to protect the rights, welfare, and privacy of human research participants. Only trained study personnel from CGIR at the University of Pennsylvania will have access to survey data provided by participants.

Will I owe tax on the gain/loss of the assets in my Gifted Savings account? Will I get a tax form?

Recipients are not required to pay taxes on the gift amount once it has fully vested (i.e. you hold the gift for the minimum required time). After your gift has fully vested, if your gift has appreciated in value since that time, the IRS holds recipients accountable for paying any capital gains tax. We know this is confusing, so here’s an example:

You are gifted $2,000 in assets, and the vesting period is 4 years (meaning you must hold the assets for at least 4 years). Let’s say that after 4 years, your gift is now valued at $5,000. You do not need to pay any taxes on that $5,000 when you cash it out.

Alternatively, let’s say that you continue holding those assets for another 5 years and the value increases to $8,000. Since you do not need to pay taxes on the $5,000, you would only need to pay capital gains tax on $3,000 of appreciation ($8,000 - $5,000 = $3,000). ‍
‍

Once the gift has fully vested, Gifted Savings will provide each recipient with a tax form to assist in calculating any potential tax obligations related to their asset's change in value over time.

What data are you collecting?

To assess financial need, we require your income details and the number of dependents you intend to include in your tax return.

Additionally, we'll verify your identity and address to confirm your eligibility within a participating Gifted Savings community. After the vesting period, capital gains may apply to funds you withdraw from your Gifted Savings account.

To provide you with the necessary tax documentation, we will request your Social Security Number. We do not sell your personal information.

How will the success of this program be measured?

We have partnered with researchers at the University of Pennsylvania’s Center for Guaranteed Income to study and measure the impacts that Gifted Savings may create for recipients. Over the coming months, we will share research reports to communicate the impact Gifted Savings had.

Why do donors choose to gift investment assets? Can I trade or sell the assets if I prefer something else?

Our philosophy is that the easier we make it for donors to give, the more we can share Gifted Savings with people.

Donors have the flexibility to choose which assets they want to give, whether it's cash, stocks, or another investment asset. When you receive the gifted assets, GS holds them on your behalf so you don't need to worry about managing a Bitcoin wallet or creating an investing account.

On the vesting date, you have the option to withdraw the value of those assets as cash by selling them. You can only "sell" the assets and withdraw them as cash when the amount becomes available according to the vesting schedule.

When funds are withdrawn, which assets are sold?

When your Gifted Savings portfolio has multiple types of assets, we sell them proportionately. This protects your savings against any one asset's price changes. For example, when making a $100 withdrawal, we sell $50 worth of asset A, and $50 worth of asset B to get your requested amount.

Who’s behind Gifted Savings?

UGS is a 501c3 non-profit, founded and underwritten by serial philanthropist and entrepreneur Farhad Mohit. We’re a growing team of professionals and volunteers who are passionate about radically improving the world of philanthropy to better serve recipients, and creating a simple, efficient, and rewarding infrastructure for donors to give wealth directly and spreading generosity, gratitude, and trust within communities. Check out our home page to see the faces behind Gifted Savings!

Questions about the application

Who’s eligible for the Walled Lake Central pilot?

In our high school program, recipients must be full-time students in their senior year at Walled Lake Central who are within 3x the federal poverty level.

What are you looking for in the application?

In order to receive Gifted Savings, seniors from Walled Lake Central must apply to Gifted Savings here and specify an inspirational dream that they would like to make come true with Gifted Savings.

In the application, we’re looking for thoughtful responses, an inspirational dream that recipients are prepared to take action towards, and a compelling reason why their dream matters and how it would make a positive impact.

We’re looking for applicants who can clearly articulate their dreams (who, what, where, why, and when) even if all the details of the “how” haven’t been figured out yet. In the application video, we’ll also be looking for seniors who are able to engage in storytelling through video and convey their authenticity through their story.

What types of dreams qualify for the Gifted Savings program?

We encourage dreams that are inspirational and genuinely meaningful to you. Your dream can be about improving your life, the lives of people around you, your community, or a cause you are passionate about. The key is to use your imagination for good and create a plan that we can help bring to life.

When sharing your dream in the application, it’s important to be thoughtful and provide context for how this dream will make a positive impact. At Gifted Savings, we believe the most inspirational dreams are ones that positively impact not just ourselves, but others as well.
‍

Example 1:
‍
“My dream is to start a mobile library where I can bring books to underserved neighborhoods in my area. I want to fill an old bus with books, sharing my love of reading with younger kids in the area and inspire a love of reading for kids who might not have access to books or have someone reading to them. To me, this project is about spreading joy, fostering education, and uniting communities through the power of books.

Example 2:
‍
"My dream is to go to art school and become a professional artist, something no one in my family has ever had the chance to do. This dream is huge for me because it's not just about doing what I love; it's about showing my younger siblings that big dreams are possible, no matter where you start from. Becoming successful in art could help me support my family and give back to my mom, who has sacrificed so much for us and has worked hard so that I can pursue my dreams."

Program overview

What’s the purpose of Gifted Savings?

Gifted Savings is a non-profit organization whose mission is to make the direct giving of wealth the simplest, most efficient and rewarding way to empower people and create diverse positive impacts. With Gifted Savings, donors give stocks and bitcoin directly to individuals who are empowered to decide how to use the funds.

Recipients can hold or sell their assets to further their personal aspirations, while donors can see the direct impact of their gift on individuals through videos uploaded by recipients.

In our high school program, we empower students by helping them take small steps towards a dream that they have, learn about assets and give them $1,000 in stocks and bitcoin.

Who are the donors? Why do they give?

What are the requirements to receive Gifted Savings?

To gain access to the $1,000 in stocks and bitcoin, recipients must be chosen to join the program, graduate from high school and turn 18.

Once recipients turn 18, they will be able to access their funds and decide to withdraw or continue holding their Gifted Savings portfolio.

What is an action item?

Action items are steps towards achieving your dream. The Gifted Savings app will suggest various personalized action items, but it's up to recipients to decide which ones to act on. For an action item to be considered complete, each action item requires a short video sharing your reflections and experience.

For example:

If a recipient’s dream is to help more ESL students learn English, a potential action item may be to interview ESL students to learn the biggest areas of opportunity and need. Recipients would be asked to record a short video reflecting on their experience, and that would represent one potential action item.

How can I use my Gifted Savings portfolio?

Once you fulfill the program requirements, you get to decide how to use the money to fulfill your dream. You can cash out and get started on your dream right away or save it for a bigger plan down the road. The choice is yours, and we're excited to see the good you'll do.

Once you unlock your portfolio, you’ll be asked to record a few videos for your video journal to share how you’ve decided to use or save your funds.

Why will I be asked to submit videos?

Gifted Savings is a direct giving platform where donors can give stocks and bitcoin directly to individuals who are empowered to decide how to use the funds. Instead of us creating a boring presentation to donors about the impact that their gift made on real people, we let recipients tell their own stories through video.

Additionally, recipients can give permission to share their videos with other recipients, inspiring each other and sharing ideas about how to use their Gifted Savings portfolio.

What happens to my personal information, videos, and photos I submit?

As a non-profit organization, we are committed to maintaining the confidentiality and integrity of your personal information. We do not sell recipient data and maintain high standards to protect your privacy.

The videos you create as part of your Gifted Savings journey are intended to share your experiences and the impact of the program with our partners and donors. These stories serve as a testament to the positive changes and initiatives that our community is fostering.

How can I be eligible to receive more than $1,000 in Gifted Savings?

To encourage and support those recipients who take action on their dreams and submit compelling action items, they will be in the running to receive $2,000 or even $10,000 in Gifted Savings.

To receive $2,000 or $10,000 in Gifted Savings, we’re looking for recipients who intentionally complete action items and take steps towards their dream. We’ll be looking for recipients who can communicate why their dream matters to them through their action item videos and make a positive impact on themselves and others. 20% of recipients will be chosen to receive double their Gifted Savings to make their dream come true.

We will look for the following criteria when selecting students to receive 2x and 10x their Gifted Savings.

Adversity
We consider the applicant's experiences with personal, financial, or systemic challenges, aiming to ensure equal opportunity by those who may not have had all the same resources.

Dream Impact
We’re looking for dreams that could have a meaningful positive impact.

A Strong “Why”
Why does this dream matter to you? We want to know! Taking action on a dream is hard work, and we’re looking for applicants who can share why their dream means something to them.

Impact Others & Self
We believe the most impactful dreams are not just about us - they also consider the people around us. Community comes in many different forms (family, friends, causes you care about, neighborhood, clubs, etc.) and we want to hear about how your dream will impact both you and others.

Thoughtfulness in Application
Since we’re not able to meet you in person, your application is the best way we can get a sense of who you are. We’re looking for responses that are reflective, detailed, and thoughtful.

Compelling Application Video
Sharing your story through short videos is an important piece of this program. We’re looking for applicants who can present a compelling and authentic narrative in their application video.
Note: We don’t expect high production videos - just a simple recording.

Understanding my portfolio

I’ve never owned stock or bitcoin and don’t have an investment account. Will I be able to receive these assets?

We make it easy for you to receive and hold stocks and bitcoin - even if you don’t have an investment account.

Instead of requiring you to open up new accounts, we hold the stocks and bitcoin for you in your Gifted Savings account. When you complete the required actions to unlock your Gifted Savings portfolio, you can decide to keep holding your assets in your account or request to withdraw specific amounts into cash.

Can I receive more than $1,000 worth of stocks and bitcoin?

Short answer: yes.

To encourage a thoughtful and impactful use of the funds, we've structured incentives that reward a bias to action, impact, and storytelling. 20% of recipients will be chosen to receive double their Gifted Savings to make their dream come true.

Can I receive more than $1,000 worth of stocks and bitcoin?