Can I run a fundraiser for another organization or as an Individual? Learn how to raise funds for a beneficiary organization.
If you are a Business or Supporting Organization
Some organizations or individuals raise funds for other organizations. This can be true in the case of a business that wishes to hold a corporate golf tournament or walk-a-thon fundraiser, with proceeds benefiting a nonprofit. Also, some Women’s groups, Friends groups (ie Friends of the Library) or Booster clubs may raise funds for associated organizations. If you are an individual or organization raising money for another organization, please keep the following in mind.
Payment Processing - Where will the money raised be directed?
The most important consideration when you are running a fundraising experience 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 experience. All funds from a campaign 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, ie 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, 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.
Either way, you must configure a supported payment provider for credit card payment processing. All of these processors require that you have a bank account in the name of the organization that will be receiving the funds.
If you are an individual
Our platform does not support individual fundraising initiatives. We work with organizations – nonprofits and charities, schools, churches, and businesses.
Therefore, the only way individuals can manage a fundraiser for an organization is by working directly with the organization. If you can work with an organization (ie provide authorization for you to fundraise for them, and assist with setting up a payment processing account for the organization), then it would be possible.