Learn about the differences between RallyUp’s funding options.
When you create a RallyUp fundraising Campaign, you’re asked to choose how your organization will receive the funds raised:
- Direct Funds: receive funds through direct deposits to your organization’s Stripe or PayPal account
- Donor Advised Funds: have Pledge or GivingStream collect and distribute funds on your behalf
This article will help you decide which option is best for your organization.
What are Direct Funds and how do they work?
Direct Funds are the fastest and least expensive way to process and receive the funds you raise. This option requires you to link your organization account to your organization’s Stripe or PayPal account. Your organization can then receive regular direct deposits to its bank account. If your organization doesn’t already have a Stripe or PayPal account, you can easily create one while you’re logged into RallyUp.
Registered 501(c) organizations may also be eligible for Stripe’s or PayPal’s payment processing fee discount.
This Knowledge Base article walks you through Direct Funds setup: How-to: Set Up Direct Funds.
What are Donor Advised Funds and when should I use them?
The majority of RallyUp users should select the Direct Funds option, but DAFs offer flexibility for special circumstances, such as:
- Your organization can’t set up a Stripe or PayPal account
- You’re fundraising for an organization but aren’t directly affiliated with them
RallyUp has partnered with Pledge and GivingStream to collect and distribute funds. Pledge is available to U.S. registered 501(c) organizations. If you’re fundraising for a U.S. charity organization that is not registered in Pledge’s database, you can apply to use GivingStream. At this time, non-U.S. organizations are not able to use Pledge or GivingStream.
DAFs also come with the following limitations:
- Additional fees
- Waiting period before funds are distributed
- Not eligible for Stripe’s or PayPal’s discounted nonprofit payment processing rate
Learn more about Pledge and GivingStream here: Understand: Donor Advised Funds (DAFs).
How long does it take to receive funds with each option?
- Stripe and PayPal: Funds are typically transferred to your bank account daily. If you’re using Stripe, you can change your payout schedule in your Stripe Dashboard.
- Pledge: Funds will automatically be delivered to the organization(s) within 15 days of the end of each calendar month.
- GivingStream: GivingStream will be automatically notified when your Campaign ends. Funds will then be held for 90 days before disbursement to account for canceled payments.
Can I change my funding method after setting it up?
You can change the way you receive funds at any time. Any changes will be applied to all active Campaigns on your account: How-to: Update Your Funding Method.
Frequently Asked Questions
What’s the main difference between Direct Funds and Donor Advised Funds?
Direct Funds provide the fastest, least expensive option by depositing funds directly to your Stripe or PayPal account. Donor Advised Funds use third-party services (Pledge or GivingStream) to collect and distribute funds, which adds fees and waiting periods but offers flexibility for special circumstances.
Which funding option should most organizations choose?
Most RallyUp users should select Direct Funds for faster processing, lower fees, and direct bank deposits. Choose Donor Advised Funds only if your organization cannot set up Stripe or PayPal, or if you’re fundraising for an organization you’re not directly affiliated with.
Do I need a Stripe or PayPal account to use Direct Funds?
Yes, Direct Funds require linking your RallyUp account to your organization’s Stripe or PayPal account. If your organization doesn’t have an account yet, you can easily create one while logged into RallyUp during the setup process.
Are there nonprofit discounts available for payment processing fees?
Yes, registered 501(c) organizations may be eligible for Stripe’s or PayPal’s nonprofit payment processing fee discount when using Direct Funds. However, organizations using Donor Advised Funds are not eligible for these discounted rates.
Can non-U.S. organizations use Donor Advised Funds?
No, at this time non-U.S. organizations cannot use Pledge or GivingStream for Donor Advised Funds. Pledge is available only to U.S. registered 501(c) organizations, and GivingStream is limited to U.S. charity organizations.