When you donate through a charity prize giveaway, the most important question is also the simplest one: where does the money actually go? This post follows a donation from checkout to charity, based on how The Daily Deed is built.
Key takeaways
- Donations settle directly to the sponsoring charity's own merchant account — the platform never takes custody of your donation.
- The platform fee is deducted at the transaction level and varies per campaign; it is set in each charity's service agreement.
- The Sponsor Charity supplies and fulfills the prize, funded from campaign proceeds.
- Free entry is always available, with the same odds per entry as donation entries.
Step 1: You donate on a campaign page
Every campaign on The Daily Deed is run by a verified 501(c)(3) Sponsor Charity. When you donate on a campaign page, you are giving to that charity — the platform is the technology layer, operated as a service provider to the charity.
Step 2: Direct settlement to the charity
Here is the part most donors never see and most platforms handle differently: your payment settles directly to the charity's own underwritten merchant account through the payment processor. The Daily Deed does not receive, hold, or distribute donations. There is no platform-controlled pool your money sits in — the charity is the merchant of record for its own campaign.
This matters for two reasons. First, it removes a custody risk: no intermediary balance means no intermediary that can fail, freeze, or delay your donation on its way to the cause. Second, it keeps the relationship honest — your donation is the charity's money from the moment it settles, as reflected on your acknowledgment from the charity.
Step 3: The platform fee, at the transaction level
The platform's fee is deducted at the transaction (split) level by the payment processor, not carved out of a balance the platform holds. The fee varies per campaign and is set in each charity's agreement — which is why you will not find a single advertised percentage on The Daily Deed. If you want the number for a specific campaign, the sponsoring charity can share the terms of its agreement.
Step 4: The charity funds and fulfills the prize
The prize is supplied by the Sponsor Charity and funded from campaign proceeds. The Daily Deed does not buy, stock, or ship prizes. After the draw completes and the winner is verified, the charity fulfills the prize to the winner, and the campaign is closed out once delivery is confirmed.
What about free entries?
Every campaign offers a free method of entry, and free entries carry the same odds per entry as donation entries — this is a legal cornerstone of the giveaway model, not a technicality. You can read more in how it works or the FAQ. For the regulatory background on promotions and consideration, the FTC publishes plain-English consumer guidance.
Why this architecture builds trust
Fundraising platforms earn trust by minimizing the distance between donor and charity. Direct settlement means the shortest possible path: donor → processor → charity. Industry practice at The Daily Deed treats the platform as plumbing, not as a bank — and that is exactly how a donation platform should behave.
Does The Daily Deed hold my donation before passing it to the charity?
No. Donations settle directly to the sponsoring charity's own merchant account. The platform does not receive, hold, or distribute donations.
Who pays for the prize?
The Sponsor Charity supplies the prize, funded from campaign proceeds, and fulfills it to the verified winner.
What is the platform fee?
The platform fee varies per campaign and is set in each charity's service agreement. It is deducted at the transaction level by the payment processor.
Is my donation tax-deductible?
Donations may be tax-deductible to the extent permitted by law; the portion representing the fair market value of a prize entry may not be deductible. Consult your tax advisor.