"Direct settlement" is the least glamorous phrase in charity fundraising and one of the most important. It answers the question every thoughtful donor eventually asks: who touches my money between me and the cause?
Key takeaways
- In direct settlement, donations land in the charity's own merchant account — there is no platform balance in the middle.
- The platform fee is deducted at the transaction level and varies per campaign.
- Charities get faster access to funds; donors get fewer failure points.
- The Sponsor Charity supplies the prize, funded from campaign proceeds.
What direct settlement means
When you donate on a Daily Deed campaign, the payment processor routes your payment to the sponsoring charity's own underwritten merchant account. The Daily Deed does not receive, hold, or distribute donations — industry standard practice at The Daily Deed is that the platform is a service provider to the charity, never a custodian of charitable funds.
How the platform gets paid
The platform fee is deducted at the transaction (split) level by the processor — the same mechanism marketplaces use — and it varies per campaign, set in each charity's service agreement. There is no step where the platform "sends the charity its share," because the charity's share was never the platform's to send.
Why charities prefer it
- Speed. Funds settle on the processor's normal schedule, straight to the charity — no waiting on a platform's payout calendar.
- Underwriting clarity. The charity is the merchant of record for its own campaign, which keeps its banking relationship, chargeback handling, and reporting in its own hands.
- Cleaner books. Donations arrive as donations, with the fee visible at the transaction level.
Why donors should care
Every intermediary balance is a point of failure: a frozen account, a delayed batch, an operator that goes under. Direct settlement removes the intermediary entirely. Your acknowledgment comes from the charity because the charity is who you actually paid. For plain-English guidance on evaluating fundraising promotions, see the FTC's consumer resources.
Where the prize fits in
The prize is not bought by the platform. The Sponsor Charity supplies it, funded from campaign proceeds, and fulfills it to the verified winner after the draw completes. Free entry is always available on every campaign, with the same odds per entry as donation entries — see how it works.
Does the charity really get the money right away?
Donations settle to the charity's own merchant account on the payment processor's normal settlement schedule — there is no platform payout step in between.
What does the platform charge?
The platform fee varies per campaign and is set in each charity's service agreement; it is deducted at the transaction level.
Who is the merchant on my card statement?
The sponsoring charity's campaign, processed through its own underwritten merchant account.