Understand: Direct vs. Managed Funds

Learn about the differences between RallyUp’s two funding options. 

When you create a RallyUp fundraising Experience, 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 account
  • Managed Funds: receive funds after your Experience ends with one digital check

This article will help you decide which option is best for your organization.

Direct Funds

Direct Funds are the fastest and most inexpensive way to process and receive the funds you raise. This option requires you to link your Experience to your organization’s Stripe account (learn more about Stripe at their website). Your organization can then receive direct deposits to its bank account each day your Experience is live. If your organization doesn’t already have a Stripe account, you can easily create one.

501(c)3 organizations may also be eligible for Stripe’s payment processing fee discount. Learn more at Stripe’s support page.

This Knowledge Base article walks you through Direct Funds setup: How to Set Up Direct Funding.

Managed Funds

The majority of RallyUp users should select the Direct Funds option, but Managed Funds offers flexibility for special circumstances, such as:

  • Your organization can’t set up a Stripe account.
  • You’re fundraising for an organization but aren’t directly affiliated with them.

RallyUp holds all funds until your Experience ends. You’ll need to request funds at that time and then wait the 90-day validation period. The Managed Funds option also comes with the following limitations:

  • All transactions 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.
  • Raffles and sweepstakes can only raise a maximum of $10,000. If you plan on raising more than $10,000, select the Direct Funds option.
  • If your organization has a DUNS number or has financial data listed in GuideStar (a registration site for 501(c) organizations), you may apply for an early release of funds by contacting us at success@rallyup.com.

Good to Know

  • You can change the way you receive funds at any time. Any changes will be applied to all active Experiences on your account
  • If you select the Managed Funds option, it is essential that you officially request funds. Read this KB article to learn how to submit your request: Withdraw and Send Funds to Your Organization.

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