What happens to your fundraising money post event? It's a broad question that could apply generally to how funds are spent. But in this case we mean what happens to your fundraising money immediately after the event. If you're using a digital fundraising platform you'll know it makes things super easy for donors. Whether they're participating in a silent or live auction or simply making a straight donation, digital platforms making giving money fast and easy. And that's great. But what happens to the money once it's left donors' and bidders' wallets? Once the last bid is made, the auction is closed and donations are finished - do you receive all funds straight away or does a third party hold onto them? It's a key question that organisations should ask potential providers of a digital fundraising platform. Generally you'll have two options:
This means your digital platform provider takes responsibility for collecting funds after a fundraising event. They receive monies direct into a holding account and match donation amounts to amounts received. Pros: saves time and effort for the fundraising organisation. They can have confidence that the donated/bid amounts tally with the amount raised at the event. Cons: some providers can hold on to the money for an awfully long time. If you opt to outsource funds collection and transfer, make sure your provider commits (in writing) to a specified transfer date. You want to earn interest on donated funds ASAP. A week post event is a reasonable time frame. A month or more is most certainly not.
The other option is to receive all donated/bid amounts direct to your account. Your digital platform provider should be able to facilitate this on your behalf. Digital finance operators, such as Stripe, can support quick and secure deposits the moment donations are made. Pros: you receive the funds immediately, this means you can start earning interest straight away. Cons: you need to set aside time to marry the funds with donation and bid amounts. Check the finance operator's t&cs carefully. Some will require a time period to expire from the account set-up date before fundraising money can be transferred. You may need to set up an account well ahead of the fundraising event to ensure an immediate transfer can take place. Takeaway Discuss post event funds transfer in depth with your digital platform provider. Ask about available options and any time lags and/or administrative burdens associated with your preference.