How A Better Gift operates within regulatory frameworks
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.
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.
Understanding how money moves through our platform is key to understanding our regulatory position:
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.
All payment processing on A Better Gift is handled by Stripe, Inc., a licensed and regulated payment processor. Here's what this means:
We use Stripe Connect, Stripe's platform payment solution, which enables:
Users of A Better Gift also agree to Stripe's Services Agreement and Stripe Connected Account Agreement. Stripe is independently responsible for compliance with applicable payment regulations.
A Better Gift operates under an agent-of-payee model. This is a common and legally recognized structure used by many technology platforms.
When you create a fundraising request on A Better Gift:
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.
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."
To comply with financial regulations and prevent fraud, all users who receive funds must complete identity verification:
| Verification Step | Handled By | Purpose |
|---|---|---|
| Legal name & DOB | Stripe | Identity verification |
| Address verification | Stripe | OFAC/sanctions screening |
| SSN/Tax ID (last 4 or full) | Stripe | Tax reporting, identity verification |
| Government ID (if required) | Stripe | Enhanced verification |
| Bank account ownership | Stripe | Ensure funds go to correct person |
This verification is required by law and helps protect against fraud, identity theft, and money laundering.
A Better Gift and Stripe comply with IRS tax reporting requirements:
Contributions received from friends and family for personal use may or may not be taxable depending on your specific situation. We recommend consulting with a tax professional about your specific circumstances. A Better Gift does not provide tax advice.
We comply with applicable privacy laws including:
For complete details, see our Privacy Policy.
We maintain clear rules about what can and cannot be fundraised for on our platform:
For details, see our Terms of Service and Trust & Safety page.
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
If you have questions about our compliance approach or regulatory status, please contact: