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Case: how winning helped create a charitable foundation
The big win is an emotional storm. But in our case, the hero (let's call him Nikita) turned a "one-time chance" into a long-term public effect: he established a fund that supports the treatment of children with rare diseases and covers the cost of trips to specialized centers. Below is an anonymized but practical roadmap: what to prepare, how to design, how to build a transparent financial model and not "burn out" in the operating system.
Input data
Winnings (net after casino fees): $1,050,000
Country of residence of the founder: conditionally - EU (principles are universal)
The purpose of the fund: targeted medical care for children (treatment/road/accommodation), microgrants for rehabilitation
Horizon: 5 years with an eye on indefinite work through the endowment
Principles: legality, transparency, independent oversight, impact-first
Step 1. We consolidate the legitimacy of money (Week 0-2)
Origin of Funds Dockpack:1. Round history: Round ID + timestamp + bet + Jackpot Win tag.
2. Casino cashier: payment check (Processed), amount, currency, method.
3. Support letter confirming the win.
4. Bank statement: incoming payment from the pool operator/provider.
KYC/AML and Taxes:- Consultation with a tax consultant, tax calculation and reservation on a separate account.
- Bank notification: origin of funds + planned donations (reduce the risk of blocking).
- 30% - tax reserve, 50% - starting capital of the fund (endowment + annual program), 10% - personal financial cushion of the founder, 10% - liquid reserve for unforeseen obligations of the fund.
Step 2. NPO Registration and Management Architecture (Week 2-8)
Legal:- Choice of form (fund/public organization/charity) - depending on the country.
- Charter: purpose, types of assistance, public reporting, prohibition of political activity, liquidation procedure.
- Board of Trustees (at least 5 people): lawyer, doctor, auditor/financier, representative of the NGO sector, independent member (not a family friend).
- Conflict-of-interest: the policy of self-elimination from voting on "own" issues.
- Compliance: sanctions checks of beneficiaries, beneficiaries of the fund - public.
- Fund director (0.8 bets), grant manager (1.0), accountant (outsource), case coordinator (0.5).
- Admin expenses KPI: ≤15% of the budget (target) with a trajectory to ≤10%.
Step 3. Financial model: "Endowment + Program" (Month 2-3)
Fund start-up capital split ($525,000):- Endowment: $350,000, Conservative placement; target withdrawal rate of 4 %/year (≈ $14,000/year for programs).
- 1: $150,000 annual program to help families + logistics.
- Operating/it/audit: $25,000 (including independent audit).
- No "risk" assets; priority - capital saving, diversification.
- Withdrawal policy: 4% of the average cost of an endowment over 3 years (or the discipline "4% of NAV last year").
- Quarterly NAV reports to the site.
Step 4. Transparency IT Stack (Month 2-4)
CRM cases: family cards, applications, medical document scans, HIPAA/GDPR compatibility.
Donor platform: payments, issuance of electronic receipts, integration with CRM.
Public dashboard: appeal counter, amount of assistance, average check, geography.
Accounting/reporting: separate accounting program/admin/fundraising; uploading the annual report to the public.
Evidence repository: impersonal invoices/acts, photo report on trips, "thank you letters" with the consent of the recipients.
Step 5. Policies and Procedures (Month 3)
Selection of cases: medical commission (doctor + external expert), checklist of criteria (diagnosis, quota, term, budget).
Antifraud: verification of documents, calls to clinics, cross-check checks.
Grant procedure: application → scoring → decision of the board of trustees (at least 3 votes in favor) → payment for the clinic/provider, not in hand.
Communications: consent to publish stories, deanonymization rules (initials/city/diagnosis).
Procurement: 3 commercial offers for amount> $5,000; supplier register.
Step 6. Impact Plan and KPI (Year 1)
Goals (SMART):- 80 families received targeted assistance, an average grant of $1,500, the median time from application to payment of ≤10 working days.
- ≥85% of funds - to programs; admin ≤15%.
- NPS of ≥80 recipients, complaint rate <3%.
- The liquid reserve of the program ≥ 3 months of planned payments.
- Number of cases/amount by diagnosis, average check, geography, average closing time.
- Financial report quarterly: receipt/expense, balances, NAV endowment.
- Annual audit report.
Timeline (12 months)
Month 1-2: docking package of origin of funds, tax reserve, registration of a legal entity, board of trustees.
Month 2-3: endowment policy, opening an investment account, IT stack (CRM/payment/dashboard).
Month 3: launch of a grant window (pilot for 10 cases), contracts with clinics.
Month 4-6: scaling to 40 cases, first interim report, criteria adjustment.
Month 7-9: partnerships with regional NGOs, joint cases, launch of a volunteer program.
Month 10-12: independent audit, annual report, audit of KPI and budget of the year 2.
Budget of the year 1 (example)
Direct grants and family logistics: $150,000
Flights/accommodation/visas (if treatment abroad): $20,000
Audit and compliance: $8,000
IT Infrastructure and Licenses: $7,000
Payroll and admin expenses (≤15% of the total): up to $28,000
Contingency: $10,000
Total: ~ $223,000 (partially covered by endowment income and donations, the rest is a founding contribution)
Risks and how they are closed
1. Regulatory delays/bank compliance → notify the bank in advance, provide a docking package, keep separate accounts.
2. Reputational attacks ("money from the casino") → complete transparency: audit, open reports, independent board of trustees.
3. Fraud of applicants → double verification, direct payments to clinics, "black list" of suppliers.
4. Market endowment risk → conservative strategy, withdrawal limit 4%, stress tests.
5. Team burnout → realistic KPIs, outsourcing of accounting/legal tasks, volunteer pool.
Communications and fundraising (ethical practices)
Stories - only with written consent, without sensations and pressure on emotions.
Labeling ads/posts as "affiliate/charity project."
Public calendar of fees, donor register by category ("anonymous" - let's say).
Quarterly "open reports" in convenient infographics.
Mini-guide of the founder: how not to "lose" the fund
Do not combine the role of the founder and the sole manager of funds - the board of trustees is required.
Do not finance "your" businesses and related parties - Related Parties policy.
Strictly separate personal funds and fund funds.
Always leave a paper trail: applications, decisions, acts, payments, reports.
Plan succession: what will happen to the fund if the founder retires.
Check sheets
Legal start:- Articles of Association/Registration/Beneficiaries
- Policies: Conflict of Interest, Procurement, Communications
- Auditor Contract, Liability Insurance
- Tax reserve and bank notification
- Endowment: strategy, withdrawals, reports
- Separate accounting program/admin/fees
- CRM cases + data protection
- Grant Procedure and Verification Checklists
- Public dashboard and reporting calendar
Nikita's win was not the ending, but the beginning: through legal purity, endowment and independent management, a one-time jackpot turned into a stable flow of help. The secret of success is transparency, discipline and measurability of the result: money is not just "donated," but works - with metrics, audit and respect for those for whom the fund was created.
Responsibly about games: even a beautiful story does not negate risks. Play on a dedicated budget only. If you are lucky, turn luck into a system that will survive the emotion and benefit people.