Learn how to raise funds for a beneficiary organization.
If you are a Business or Supporting Organization
Some organizations raise funds for other organizations. Consider the following scenarios:
- A company wishes to hold a corporate golf tournament or walk-a-thon fundraiser, with proceeds benefiting a nonprofit.
- Women’s groups, Friends groups (i.e., Friends of the Library), or Booster clubs raise funds for associated organizations.
- Organizations or projects that are under the umbrella of a community organization or fiscal sponsor.
If you are an organization raising money for or via another organization, please keep the following in mind.
Where will the money raised be directed?
The most important consideration when you are running a fundraising Campaign for another organization is where the revenue will be directed. You will need to determine if your organization (the primary organization) or the beneficiary will receive the funds from the Campaign. All funds must be directed to only one bank account – they cannot be split between accounts.
Often, it is best to have the beneficiary organization receive the funds directly. In this way, the primary organization does not handle the funds, and the beneficiary can generate charitable receipts for donors. However, sometimes the fundraising organization needs to pay expenses from the revenue, i.e. pay for the goods sold or golf tee times. In this case, the primary organization may need to take the fundraising revenue and distribute the proceeds to the beneficiary organization after expenses are paid.
Keep in mind that there could be tax implications for your organization if you are receiving funds, so check with a tax professional on this. Also, if a business is raising funds for a beneficiary, your donors may not be able to claim their gifts as tax-deductible. This is usually why organizations want a fiscal sponsor so that donors can take a tax deduction for their gifts.
Payment Processing
Whatever you decide, your group must set up a Stripe or PayPal account for credit card payment processing and have a bank account in the organization's name that will receive the funds. The name on the payment processing account must exactly match the name on the bank account receiving the funds.
Meet the Organization text
It's important to clearly spell out the beneficiary relationship on your website. The Meet the Organization text may be confusing to supporters since it is generated from the primary organization’s details.
In this case, you can turn this section off from the Page Design card – “Determine what should display on your page” section.
Fundraising Raffles and Sweepstakes are an exception
Raffles and sweepstakes (also known as giveaways) are a great way to raise money for a cause. They do come with some legal requirements that the beneficiary organization is responsible for, though. Because of this, the organization you’re raising money for will need to be registered with DoJiggy so they can oversee the campaign and receive all funds directly.
For raffles, US-based organizations must be a registered 501c3. This is due to IRS regulations. In Canada, charities must abide by similar laws.
For Sweepstakes and raffles, start by reaching out to the organization you want to raise money for and let them know about the giveaway you would like to run on their behalf. If the organization approves of your request to run a giveaway for them, they will need to register on our platform. If the organization does not approve your request, remember that the reason is likely due to the legal requirements around giveaways. The organization may not be qualified to run an online giveaway or may be restricted in how many they can run per year.
If you are an individual
Individuals cannot raise funds on our platform. We only work with organizations – nonprofits and charities, schools, churches, and businesses. Therefore, the only way individuals can fundraise for an organization is by working directly with the organization. If you can work with an organization (ie, have someone who can verify the organization and assist with setting up a payment processing account in the organization's name), then it would be possible.