Frequently Asked Questions

At KarmaHub, we believe that the world isn't such a broken place -- and despite the desire to "doom-scroll" or obsesse over the evening news, there is a lot of good out there... much more than most would realize!

In fact, there are currently more than 1.8 Million Non-Profit Organizations operating in the United States, each pursing their own clearly defined missions for good.

These are the organizations who are actively feeding the hungry, housing the homeless, cleaning our oceans, and helping those less fortunate -- and they're often doing so without the hands and resources they so desperately need!

They have pledged their most honest intentions into their causes, and sacrificed countless hours in pursuit of keeping their missions in focus and achieving their goals.

KarmaHub is here to take everyone's efforts and align them in a new kind of way.

Our mission is to amplify the efforts of America's Non-Profit Organizations by providing them with the Volunteers and  resources they need via a low-cost, high-trust platform that connects Volunteers, Non-Profits and Sponsor Businesses in a mutually beneficial economy for good.

KarmaHub itself is a B-Corp bound startup registered as an LLC in the State of New Jersey.  As part of our philanthropic mission and goals, we pledge to donate a large percentage of our profits into the KarmaHub Volunteers Fund and encourage other organizations to do the same.

For more information on the KarmaHub Volunteers Fund, see the FAQ section below.

The Karma Farm is where seeds for good deeds are planted and grown!

While Volunteering and getting "thanked" by one of our Partner Brands may sound pretty cool, passing along those "thank you's" to others is even cooler!

Think of Karma Farming as crowd sourcing applied to volunteering.

The Karma Farm enables you to volunteer alongside your friends and combine your Karma Tokens to do things like help fly someone home for the holidays, or pay a veterinarian bill for a furry friend who needs emergency surgery.

You could even rally your community to support Non-Profits in your neighborhood and help them generate the supplies and materials needed to amplify their mission and reach their goals!

The collective power of Volunteering through the Karma Farm is practically unlimited by nature, and by working together in the Karma Farm, you can make a massive impact to those who deserve it most!

KarmaHub requires a full tank to properly launch!

In order for us to ensure proper supply and demand across the platform, we need to rally a broad collective of Volunteers, Non-Profits and Businesses to ensure its' success, and we're doing so by means of the KarmaHub Waitlist.

The KarmaHub Waitlist is the Pre-Launch Database we're busy building and populating with a Million Volunteers, a 100 Million Available Volunteer Hours, and $1 Billion in pledged "thank you's" from the brands you love most!

This "inventory" will allow Volunteers to serve up to 100 hours each on during the Beta Test Program.

By doing so, the first million KarmaHub Volunteers will have a wide array of ways to participate and give back in the KarmaHub Ecosystem.

During the Beta Test, KarmaHub will continue onboarding Volunteers, Non-Profits, and Sponsor Businesses for the larger launch, including an international version of the platform we hope to have in place by late 2023.

KarmaHub is free for Volunteers and Non-Profit Organizations to participate in -- only Sponsor Businesses pay a fee to partake in the KarmaHub Ecosystem.

In fact, if you're an NPO who's in good standing in the KarmaHub Ecosystem, we'll donate dollars to YOU each year, with the annual distribution of the KarmaHub Volunteers Fund!

For Sponsor Businesses, there are no upfront costs, however, upon formal registration (not during the waitlist period), businesses will be required to connect a payment method to KarmaHub.

KarmaHub receives payment only when  Karma Tokens are redeemed at your existing point of sale.

For every dollar of redeemed value, the Sponsor Business pays KarmaHub $0.01 (1%) transaction fee.

So, if a business were to honor a $500 coupon, they would be billed a $5 fee from KarmaHub.

Transaction fees will be batched and paid daily.

The KarmaHub Volunteers Fund is a treasury that allocates funds donated by various organizations to the Non-Profit Organizations who partake in the KarmaHub Ecosystem.

Funds are distributed in proportion to the total number of volunteer hours served at any KarmaHub Certified Non-Profit Organization, versus all of the hours served inside the KarmaHub Ecosystem over the course of the year.

For instance, if one particular Non-Profit Organization generates 10% of all Volunteer Hours served in the KarmaHub Ecosystem in a given year, that organization will receive 10% of the funds distributed from the KarmaHub Volunteers Fund.

So, if there is $1 Million in the fund, that particular organization would receive $100,000 as a cash donation from the KarmaHub Volunteers Fund.

While any person or organization can donate to the KarmaHub Volunteers Fund, we encourage Non-Consumer-Facing Businesses to make their own pledge to the fund each year, based on a percentage of their profits.

The more businesses that pledge a percentage of their profit to the KarmaHub Volunteers Fund, the more funds will be released to participating Non-Profit Organizations each year!

At KarmaHub, we intend to lead by example. After all of our bills are paid, KarmaHub, as a Non-Consumer-Facing Business itself, pledges to donate a substantial percentage of its' remaining proceeds into the fund at the end of each calendar year.

Just IMAGINE the impact we could make by all pledging our resources together!

*Donations to the KarmaHub Volunteers Fund may be tax deductible depending on your state's tax code. Please consult your tax professional to address your individual tax situation.

Karma Tokens are generated each time a registered KarmaHub Volunteer volunteers one hour at any KarmaHub Certified 501c3 Non-Profit Organization.

The Volunteer is required to check-in and check-out of Volunteering Events with the NPO's designated Volunteer Coordinator who certifies the volunteers hours and rates their efforts.

Karma Tokens are anchored to the minimum wage at the physical location of the Volunteering Event, and expire one year after their original generation date.

As a Volunteer, upon registering for the KarmaHub Ecosystem, you will be required to disclose if you are a director or paid employee for a non-profit organization and, if so, disclose the name and location of the organization.

Directors and Employees of KarmaHub Certified Non-Profit Organizations may not Volunteer to receive Karma Tokens generated by their own organization.

For other requirements, please see FAQ: "What information do I need to provide as a Non Profit Organization'

Karma Tokens are NOT a crypto currency -- they are coupons. 

However, they are generated and maintained using similar blockchain technology.

What does that mean? It means unlike currencies, Karma Tokens (coupons) are not "investible" on their own.  You cannot buy Karma Tokens, or trade them in any speculative manner. They're not designed to "go to the moon", or make anyone a billion dollars.

KarmaHub uses blockchain technology as a utility --not only to track 1% Pledges and verify Volunteer Hours, but also to tell the "story" of each Good Deed fulfilled by Volunteers, Non-Profits, and the "Thank You's" provided by KarmaHub's Sponsor Businesses.

Businesses will be able to log into the KarmaHub Sponsor Business Portal and see how their pledges were put to work, and receive a clear snapshot of which Volunteer Hours and Non-Profit Organizations were sponsored by their "Thank You's".

Businesses will be able to see, real time, how their 1% Pledge is performing, and which demographics are responding to their offerings.

Non-Profits will be able to see the same information, and learn where the Karma Tokens they've generated have been redeemed.

The 1% Pledge is the entry requirement for your business, and that pledge varies by the type of business you are - either Consumer-Facing or Non-Consumer-Facing.

As a Consumer-Facing Business, you are required to Pledge 1% of your previous year's revenue, matched as discounts, into the "coupon pool" in the center of the KarmaHub Ecosystem...which circulates in-kind benefits for good.

As a Non-Consumer-Facing Business, you are required to pledge at least 1% of your profits into the KarmaHub Volunteers Fund, which distributes cash donations to all Non-Profit Organizations who partake in the KarmaHub Ecosystem. A 1% transaction fee is also added to your contribution.

Businesses who also need Volunteers for their events may offer additional rewards within their organization beyond their standard 1% Pledge. For example, many people proudly volunteer as ushers or guest service personnel for sports teams in their cities.

This type of volunteer opportunity would be rewarded with Karma Tokens that are only redeemable from that particular organization point of sale, and cannot be used across the broader ecosystem.

While not required, you are welcome to pledge additional resources into the KarmaHub Ecosystem!

Some businesses may choose to keep going beyond their 1% pledge by sponsoring 2, 3, 4 percent, or more!

Alternatively, if a business chooses not to go beyond their 1% annual pledge, they can offer other incentives into the program.

For example, the business may chose to offer a flat 10% discount to any registered KarmaHub Volunteer at their point of sale.

Tax implications vary depending on what type of participant you are in the KarmaHub Ecosystem.

For Consumer-Facing-Businesses and Individuals or Organizations redeeming Karma Token backed coupons:

Karma Tokens that are presented at any participating consumer-facing businesses' point of sale are treated as retail coupons which are applied to the entire purchase at the retail point of sale. Retailers cannot claim the value of the redeemed coupons as charitable donations.

Any sales tax due is paid for by the person or organization redeeming the Karma Token backed coupons.

Sales tax is calculated on the pre-discount value of the purchase.

For instance, if a customers subtotal is $100, and they present a Karma Token QR Code coupons at the point of sale with a value of $20, then the customer will pay $80 for the items, plus the sales tax on the retail price of the purchase.

In this case, if the sales tax is 7%, the customer would pay 7% on the $100 (not 7% on $80).  Therefore, the customer would pay the retailer $80 + $7 tax -- a grand total of $87.

For Non-Consumer-Facing Businesses and Individuals who wish to donate to the KarmaHub Volunteers Fund:

Cash donations made to the KarmaHub Volunteers Fund by Non-Consumer-Facing Businesses and Individuals are tax deductible, as the funds are distributed to tax exempt 501c3 Non-Profit Organizations.

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Tax Laws vary state by state, so you should contact your tax professional for specific guidance when it comes to your individual situation.

KarmaHub Works for all types of Businesses. Which Type are you?

• A Consumer-Facing Business (a sports team, a retail chain, a streaming service, a hotel chain, etc)
• A Non-Consumer-Facing Businesses (a brand, a bank, a manufacturer)
• A Consumer-Facing-Business who ALSO needs local volunteers for an event.  

Each type of business has their own set of rules and requirements to participate in the KarmaHub Ecosystem.

Be sure to become familiar with the terms and browse the KarmaHub FAQ to learn more about how all types of businesses can come together for the greater, greater good!

During our waitlist period, all you need to do is provide your company's basic information along with your 1% pledge amount, based on your previous years' revenue.

This is so that we may gather all of the collective pledges needed to reach our $1 Billion 1% Pledge Beta Test threshold.

Upon pre-registering, you also consent to KarmaHub using your businesses' name, logo, along with your 1% Pledge amount in our directory and promotional material across our social media channels for marketing purposes.

NOTE: KarmaHub does not require proof of your businesses income upon registration, however you are required to certify that the amount entered is accurate based on your previous years' IRS Form 1040 submission.

If any fraud or manipulation of the platform is flagged, KarmaHub reserves the right to request documentation if an audit of your 1% Pledge is required, including a copy of your 1040 cover page.

Failure to provide this documentation upon request may result in your business being temporarily or permanently banned from the platform.

Non-Profit partners must be registered 501c3 Organizations operating in the United States and are required to certify their organizations' IRS Form 1023 (proof of non profit status) as well as their previous tax years' IRS Form 990 (the organizations' operational summary, including volunteer contributions).

Form 990 is an important public filing made by the majority of Non-Profit Organizations which includes a summary of the organizations' overall business practices as well as their volunteer needs and usages.

The requirement to submit Form 990 is necessary to ensure transparency amongst participating organizations in the KarmaHub Ecosystem.

Here is a good read on form 990 and why it's a critical document for the Non-Profit Organizations who issue them.

Consumer-Facing Businesses who also need Volunteers often operate in the Live Events and Entertainment spaces, and are welcome to join the KarmaHub Ecosystem!

Many professional sports teams, concerts and festivals require an army of local volunteers to ensure the safety of attendees, and the overall quality of their events.

Like all other consumer-facing businesses, they are required to take their "1% Pledge", however,  Karma Tokens generated by volunteering for for-profit, consumer-facing companies can only be redeemed at the company providing the volunteer opportunity.

For example, a sports team may need 50 volunteers for each home game at their stadium.  These Volunteers are rewarded with an internal version of Karma Tokens that are ONLY redeemable at the organization's point of sale.  

This means that if someone were to volunteer 100 hours for their hometown team over the course of the season, that Volunteer would receive 100 x $10 = $1,000 in discounts at that particular team ONLY.

NOTE 1: Karma Tokens generated and redeemed in this manner do NOT count towards the fulfillment of their standard 1% Pledge.

NOTE 2: As labor laws vary by state, Consumer-Facing Businesses who also need Volunteers should consult with their local rules and regulations as it applies to Volunteering at For-Profit events.

Head to KarmaHub.app and pre-register as a Volunteer, Non-Profit Organization, or Sponsor Business. It's obligation free, and when the KarmaHub Ecosystem is ready for launch, you will have early access to our Beta Test!

As a Volunteer, sign up and share! The quicker we reach our KarmaHub Waitlist Beta Test requirements, the sooner the KarmaHub Ecosystem will launch!

We encourage Volunteers to bring the KarmaHub.app registration to the Non-Profits they already work with, so that we may certify them to log and approve your Volunteer Hours.

As a Non-Profit, you must provide an estimate of your required Volunteer Hours each year.

As a Business, you must include your approximate 1% pledge total, based on your previous year's revenue (as a consumer-facing business), or profit (as a non-consumer-facing business).

KarmaHub and KarmaHub Ecosystem Logo are trademarked by KarmaHub App Inc and KarmaHub Volunteers Inc.

KarmaHub  has a presence on Facebook, Instagram and Linked In.

These are our official handles. Please join in on the conversation and share with your peers!

LinkedIn: https://www.linkedin.com/company/karmahubecosystem

Instagram:  https://www.instagram.com/karmahub_ecosystem/

Facebook: https://www.facebook.com/KarmaHubApp

Instagram for Kenny from KarmaHub (our mascot!): https://www.instagram.com/kenny_from_karmahub/