Our Regulatory Approach
A Better Gift is committed to operating transparently and in compliance with applicable laws and regulations. This page provides an overview of our regulatory approach and how our platform operates.
Key Principle: Technology Platform, Not Money Transmitter
A Better Gift is a technology platform that facilitates connections between people who need help and people who want to provide it. We do not transmit, hold, or control funds. All payment processing is handled by our licensed payment processor, Stripe, Inc.
How Funds Flow
Understanding how money moves through our platform is key to understanding our regulatory position:
👤
Contributor
Initiates payment through A Better Gift interface
💳
Stripe (Payment Processor)
Receives payment, processes transaction, handles compliance
🔗
Stripe Connect (Connected Account)
Routes funds to recipient's connected Stripe account
🏦
Recipient's Bank Account
Contributions processed directly via Stripe
💡 Key Point: A Better Gift Never Holds Funds
At no point in this process does A Better Gift receive, hold, or control contributed funds. Funds flow directly from the contributor's payment method to the recipient's bank account through Stripe's payment infrastructure.
Payment Processor: Stripe
⚡ Powered by Stripe
All payment processing on A Better Gift is handled by Stripe, Inc., a licensed and regulated payment processor.
Stripe's Regulatory Status
- Money Transmitter Licenses: Stripe holds money transmitter licenses in states where required
- PCI DSS Level 1: Highest level of payment card industry compliance
- Bank Partnerships: Works with regulated banking partners for fund handling
- KYC/AML Programs: Comprehensive identity verification and anti-money laundering programs
- Global Compliance: Regulated in multiple jurisdictions worldwide
Stripe Connect
We use Stripe Connect, Stripe's platform payment solution, which enables:
- Direct routing of funds to recipients without A Better Gift touching the funds
- Identity verification of all fund recipients
- Compliance with KYC (Know Your Customer) requirements
- Automated tax reporting (1099-K) where applicable
- Secure bank account verification
Agent-of-Payee Relationship
A Better Gift operates under an agent-of-payee model. This is a common and legally recognized structure used by many technology platforms.
How It Works
When you create a fundraising request on A Better Gift:
- You appoint A Better Gift as your limited agent for the specific purpose of facilitating receipt of contributions
- This agency relationship means contributions made through our platform are considered received by you (the payee) at the time they are processed
- A Better Gift's role is limited to facilitating the transfer — we don't control how you use your funds
Legal Basis
The agent-of-payee model is recognized under various state and federal guidance as distinct from money transmission because the platform acts on behalf of the recipient (payee) rather than independently transmitting funds.
Your Agreement
By using A Better Gift, you agree to the agency relationship described in our Terms of Service, specifically Section 2.4, which states:
"By creating a fundraising request on A Better Gift, you authorize and appoint A Better Gift as your limited agent solely for the purpose of receiving contributions on your behalf through our third-party payment processor and facilitating the transfer of those contributions to your designated bank account."
Identity Verification & KYC
To comply with financial regulations and prevent fraud, all users who receive funds must complete identity verification:
This verification is required by law and helps protect against fraud, identity theft, and money laundering.
Privacy & Data Protection
We comply with applicable privacy laws including:
✓ U.S. Regulations
- California Consumer Privacy Act (CCPA)
- State data breach notification laws
- Children's Online Privacy Protection Act (COPPA)
- CAN-SPAM Act
✓ International
- General Data Protection Regulation (GDPR)
- Data protection principles
- Right to access/delete data
- Data minimization
For complete details, see our Privacy Policy.
Platform Rules & Enforcement
We maintain clear rules about what can and cannot be fundraised for on our platform:
- Terms of Service: Defines acceptable use and prohibited activities
- Content Moderation: We review requests for policy compliance
- Reporting Mechanism: Users can report concerning activity
- Enforcement Actions: Violations may result in account suspension or refunds
- Law Enforcement Cooperation: We cooperate with valid legal requests
For details, see our Terms of Service and Trust & Safety page.
Questions People Actually Ask About Trusting A Better Gift
Before trusting any platform with your bank information or your family's situation, you deserve real answers — not marketing speak. Here are the questions we hear most often, answered plainly.
Is A Better Gift legit?
Yes. A Better Gift is a registered technology platform operating in compliance with US financial regulations. All payments are processed by Stripe — the same payment infrastructure that powers Shopify, Lyft, Instacart, and millions of other businesses. We're a real company, with real people, building something we genuinely believe in.
Is A Better Gift safe? Can I trust it with my bank information?
Yes. Your bank information never touches A Better Gift's servers. When you connect your account to receive funds, you do it directly through Stripe — the licensed payment processor used by millions of businesses. Stripe handles all banking, identity verification, and storage. We never see your account numbers, and we couldn't access them if we tried.
Is A Better Gift a scam?
No. A scam wouldn't operate through Stripe (which requires extensive verification of every business it works with), wouldn't publish a public compliance page, and wouldn't have a publicly identifiable founder. A Better Gift is a real company built to do one specific thing: let the people who already care about you help you directly, privately, without the public spectacle of crowdfunding.
Does A Better Gift actually send the money to me?
Yes — and "send" is the wrong word, because we never hold it in the first place. Funds flow directly from the contributor's payment method through Stripe to your bank account in 1-2 business days. A Better Gift acts only as the software layer that connects everything. The money never sits in our possession.
What happens to my money if A Better Gift goes out of business?
Nothing, because A Better Gift never has your money. Funds flow directly from contributors through Stripe to your bank account — they never pass through A Better Gift. If the platform stopped operating tomorrow, contributions already sent would still complete through Stripe, and your bank account would still hold what you'd received.
How do I know contributors' payments are secure?
All payments are processed by Stripe with bank-level encryption (TLS 1.2+ and AES-256). Stripe is PCI DSS Level 1 certified — the highest standard for handling card data. Card information is never stored on A Better Gift's servers, and contributors don't need to create an account or share personal data beyond what's needed to process their payment.
Is A Better Gift legal in my state?
Yes. A Better Gift operates as a technology platform — not a money transmitter, not a bank, not a charity. Because we don't hold or transmit funds (Stripe does), we don't require state-by-state money transmitter licensing. We comply with US federal financial regulations and the laws of all 50 states.
Who regulates A Better Gift?
Stripe — our payment processor — handles regulatory compliance for the payment side, including federal money transmission laws and state-level requirements. Stripe is regulated by FinCEN, state financial authorities, and is PCI DSS Level 1 certified. A Better Gift complies with US consumer protection law, privacy regulations, and platform operating standards.
Legal Notice
This compliance overview is provided for informational purposes only and does not constitute legal advice. The regulatory landscape for technology platforms and payment services is complex and evolving. A Better Gift's compliance approach is based on our understanding of applicable laws and regulations as of the date of this document. If you have specific legal or regulatory questions, please consult with a qualified attorney.
Last Updated: February 6, 2026
