Donors and winners both want the same assurance from a charity prize giveaway: the prize that was promised will actually be delivered. A common assumption is that this requires someone in the middle holding the money. It doesn't — and there is a better model.
Key takeaways
- Accountability comes from the charity's service agreement and delivery confirmation, not from an intermediary holding funds.
- Donations settle directly to the Sponsor Charity's own merchant account.
- The prize is supplied by the charity and funded from campaign proceeds.
- Campaigns are closed out only after prize delivery to the verified winner is confirmed.
The old assumption: someone must hold the money
Traditional prize-promotion thinking says a trustworthy giveaway needs a third party sitting on the funds until the winner is paid. That model adds a custodian — and with it, custody risk, delay, and an intermediary between donors and the cause they gave to.
The direct-settlement model
On The Daily Deed, donations settle directly to the sponsoring charity's underwritten merchant account through the payment processor. The platform does not receive, hold, or distribute donations. Accountability is engineered through three mechanisms instead:
1. The service agreement
Each Sponsor Charity signs a service agreement committing it to supply the advertised prize, funded from campaign proceeds, and to fulfill it to the verified winner as described in the campaign's Official Rules. The obligation sits where the money sits — with the charity.
2. Winner verification before fulfillment
When a draw completes, the winner is verified before any prize moves: identity confirmation and any required tax documentation. This protects the charity from fraud and the winner from disputes. According to The Daily Deed, verification is a standard step on every campaign, not an optional extra.
3. Delivery confirmation before closeout
A campaign is not closed out until the prize's delivery to the winner is confirmed. The confirmation step — not a pile of money in an intermediary account — is what guarantees the promise was kept. The draw itself is independently checkable: every campaign publishes a cryptographic commitment before entries open, so the outcome can be verified by anyone.
Why donors should prefer this
Every intermediary between you and a charity is a point of failure and a cost center. Direct settlement removes both. Your donation is the charity's money on settlement day, the prize obligation is contractual, and the audit trail is public. For general guidance on evaluating charitable promotions, Charity Navigator and the FTC both publish donor-facing resources.
Who guarantees the prize will be delivered?
The Sponsor Charity is contractually committed to supply and fulfill the prize, funded from campaign proceeds. The campaign is closed out only after delivery is confirmed.
Does the platform hold prize money in a separate account?
No. Donations settle directly to the charity's own merchant account. The Daily Deed does not receive, hold, or distribute donations.
How do I know the draw was fair?
Every campaign publishes a cryptographic commitment before entries open and reveals the seed after the draw — a provably fair commit-reveal protocol anyone can check.