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
- Pledge: have Pledge 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 is Pledge and when should I use it?
The majority of RallyUp users should select the Direct Funds option, but Pledge offers 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 to collect and distribute funds. Pledge is available to U.S. registered 501(c) organizations only.
Pledge also comes 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 here: Understand: Pledge.
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.
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 Pledge?
Direct Funds provide the fastest, least expensive option by depositing funds directly to your Stripe or PayPal account. Pledge is a third-party service that collects and distributes funds on your behalf, 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 Pledge 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 Pledge are not eligible for these discounted rates.