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Direct and Deferred Funding: What’s the difference?

Learn more about your options for receiving the funds you raise through RallyUp.

RallyUp offers two ways to receive the funds you raise through your campaign:

  • Direct Funding: With this option, funds are deposited directly to your bank account daily via your Stripe account.
  • Deferred Funding: In this option, funds are collected and held for payment until a later date (US only; typically a period of 90 days).

When registering your nonprofit or charity group, you'll have the option to choose direct or deferred funding. If you’re affiliated with the organization for which you’re raising money, we recommend choosing direct funding so you can receive your funds in daily deposits made directly into your bank account. On the other hand, if you're an individual or business raising money to benefit a nonprofit but are not affiliated with the organization, your funds will automatically be collected using our deferred funding option. If this applies to your fundraiser, you can read more about how you will withdraw and send funds to the nonprofit at the end of your campaign.

Direct Funding

Choosing direct funding is the fastest and most inexpensive way to process and receive the funds raised through your campaign. Funds are deposited directly into your bank account, and you can receive a discounted nonprofit rate on payment processing fees from Stripe.

All it takes to set up direct funding is an email address. Once you enter the email you’d like to use for your direct funding account, you’ll receive an email from Stripe (RallyUp’s payment processor) with instructions to securely provide your direct deposit information. 

RallyUp has partnered with Stripe to process all donations made to your fundraiser. Stripe is a Tier 1 payment processor (the highest level of security) that transacts billions of dollars every year for some of the largest companies in the world. Learn more about Stripe here.

Click the button below to learn how to set up Direct Funding:

GET STARTED

Deferred Funding

If receiving funds directly into your organization’s bank account isn't possible due to organization structure or policies, you can use Deferred Funding instead.

When you choose deferred funding, the funds raised on your campaigns will be collected and held until a later payout date. You’ll simply request funds when your campaign ends and choose whether you would like to receive them by e-check or ACH transfer.

There are a few details you should know before choosing deferred funding:

  • Funds will be sent to your organization via a digital check approximately 90 days from the date of your request. The digital check will be sent by email from our partners at Checkbook.io, and can be deposited via bank teller, ATM, or banking app.
  • The 90-day period is used solely to allow the processing of any refunds and credit card disputes.
  • If your organization is large and/or well-established, the 90-day holding period can be waived. Please email help@rallyup.com from your organization’s email domain to request a waiver.
  • Donations processed using deferred funding will have a Stripe processing fee of 2.9% +$0.30 per transaction (Stripe's standard rate). This is slightly higher than the nonprofit rate available through direct funding. 

Recommendations

The vast majority of RallyUp customers use direct funding unless there is a specific reason they can't. Setting up direct funding takes only a couple of minutes, and the process is built right into your organization settings on RallyUp. Direct funding offers lower processing costs, quicker financial progress towards your goal, and daily deposits of funds are made right into your bank account.

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