DTCare and AIT — The Charities Behind Colossal Contests Explained

Every time a supporter donates through a Colossal contest platform the money does not go directly to the named charity. It passes through one of two intermediary organizations first. Those organizations are DTCare and Action Initiative Team, also known as AIT.

This is the step in the donation process that generates the most confusion and skepticism among contestants and their supporters. Understanding exactly what these organizations are, how they work, and how to verify them yourself answers the most commonly asked question about every Colossal competition.

What Is DTCare

DTCare is a registered 501c3 public charity incorporated in the state of Arizona. Its EIN is listed in the official rules of every Colossal contest that uses it as the intermediary. DTCare's stated purpose is to facilitate charitable giving through fundraising competitions.

DTCare receives donations from the Colossal contest platform and holds those funds until the competition cycle concludes. After deducting competition fees of 36.5% and variable costs, DTCare distributes a grant to the designated charity for that specific competition cycle.

You can verify DTCare's nonprofit status independently through the IRS Tax Exempt Organization database with the IRS website or through ProPublica's nonprofit explorer.

What Is AIT

Action Initiative Team, referred to as AIT in Colossal contest rules, is a separate registered 501c3 public charity that serves the same intermediary function as DTCare for certain Colossal competitions. Some contests route through DTCare and some route through AIT. The specific intermediary for each contest is disclosed in the official contest rules.

AIT receives donations and distributes grants to the designated charity for the competition cycle after deducting fees under the same structure as DTCare.

Why Do These Intermediaries Exist

Using a registered charitable intermediary is a standard and legal structure in professional fundraising. The intermediary exists to provide a compliant pathway for tax-deductible charitable giving within the context of a competition that is operated by a for-profit company.

Without the intermediary the for-profit company would be directly receiving charitable donations which creates different legal and tax implications. The intermediary structure allows donors to receive a legitimate tax-deductible receipt while Colossal Management operates the competition as a for-profit enterprise.

This structure is used by multiple professional fundraising companies across the United States and has been reviewed in court. The 2021 class action against Crow Vote LLC, an entity associated with Favorite Chef, challenged whether this structure constituted an illegal lottery. The court dismissed the case and found the structure lawful.

How Much of Each Donation Reaches the Charity

The official rules of Colossal contests consistently disclose that competition fees of 36.5% and variable costs are deducted before the grant reaches the designated charity. This means that of every dollar donated approximately 63.5 cents or less reaches the charity after fees are deducted.

This fee structure is disclosed in the rules. It is worth reading and understanding before you ask your supporters to donate on your behalf.

How to Verify Everything Yourself

For any Colossal contest you are considering entering take these three steps before your supporters donate a single dollar.

First find the official contest rules page. Every legitimate Colossal contest has a publicly accessible rules page that identifies the specific charitable intermediary by name and EIN number.

Second look up the EIN number of the intermediary at apps.irs.gov to confirm it holds current 501c3 status.

Third look up the designated charity on Charity Navigator at charitynavigator.org to understand the organization's ratings, financials, and how it uses donated funds.

This three-step verification process takes less than 10 minutes and gives you complete transparency about where the money goes before any of your supporters make a financial contribution.

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