{"id":144294,"date":"2025-12-26T05:00:00","date_gmt":"2025-12-26T10:00:00","guid":{"rendered":"https:\/\/bloomerang.com\/?p=144294"},"modified":"2025-12-18T09:59:24","modified_gmt":"2025-12-18T14:59:24","slug":"whats-the-best-way-to-run-an-online-fundraiser-for-multiple-charities","status":"publish","type":"post","link":"https:\/\/bloomerang.com\/blog\/whats-the-best-way-to-run-an-online-fundraiser-for-multiple-charities\/","title":{"rendered":"What\u2019s The Best Way To Run An Online Fundraiser For Multiple Charities?"},"content":{"rendered":"<p><strong>Our\u00a0<a href=\"https:\/\/bloomerang.com\/blog\/category\/ask-an-expert\/\">Ask An Expert<\/a>\u00a0series features real questions answered by\u00a0<a href=\"https:\/\/bloomerang.com\/blog\/claire-axelrad-jd-cfre-joins-the-bloomerang-team-as-fundraising-coach\/\">Claire Axelrad, J.D., CFRE<\/a>, also known as Charity Clairity.\u00a0<\/strong><b>Today\u2019s question comes from someone who wants to know the best way to run an online fundraiser for multiple charities:\u00a0\u00a0<\/b><\/p>\n<blockquote><p><i>Dear Charity Clairity,<\/i><\/p>\n<p><i>My son and I want to start a fundraiser for two cancer-related charities. We tried to have an actual fundraiser event but sadly it did not work out. I&#8217;d like to now just do an online donation drive. Ideally I&#8217;d like to use an app or service to hold the money until we&#8217;re ready to donate it directly to the organizations. How can we best achieve this?<\/i><\/p>\n<p><i>&#8212; In the Dark<\/i><\/p><\/blockquote>\n<p><i>Dear In the Dark<\/i><\/p>\n<p>There are several ways to go about this. Your choice somewhat depends upon (1) whether your donors want tax deductions and individual tax receipts, or (2) whether they\u2019re content to simply give regardless of tax deductibility. Let\u2019s look at the pros, cons, compliance considerations, and practical steps for setting up your fundraiser under both scenarios.<\/p>\n<h2>1. If your donors care about tax deductions<\/h2>\n<p>When donors want or expect tax-deductible receipts, you must route their contributions <b>through a bona fide 501(c)(3)<\/b> organization, and not through your personal bank account, PayPal, Venmo, or any pooled holding account &#8212; unless that account is legally owned by a charity. U.S. law is very specific:<\/p>\n<ul>\n<li>Only the organization that legally receives the donation can issue the receipt.<\/li>\n<li>Donations made to individuals are <i>not<\/i> tax-deductible, even if you later give the money to charity.<\/li>\n<\/ul>\n<p><b>You have two strong options here:<\/b> fiscal sponsorship or charity-hosted fundraising pages.<\/p>\n<h2>(1) Fiscal sponsorship: The easiest way to pool tax-deductible donations<\/h2>\n<p>If you want to <b>collect donations in one place<\/b>, tally a total, hold the funds temporarily, and then distribute them to two cancer nonprofits, <a href=\"https:\/\/bloomerang.com\/webinar\/video-how-to-create-a-happy-nonprofit-fiscal-sponsorship-relationship\/\">fiscal sponsorship<\/a> is the cleanest and most professional approach.<\/p>\n<h3>What is fiscal sponsorship?<\/h3>\n<p>A fiscal sponsor is an established 501(c)(3) that agrees to accept donations on behalf of a project (in this case, yours). They legally own the funds until they grant them to your chosen nonprofits. Many people think of fiscal sponsors as \u201cnonprofit umbrellas\u201d that extend their tax-exempt status to projects aligned with their mission.<\/p>\n<h3>How it works in practice<\/h3>\n<p>1. You apply to a sponsor or set up a simple agreement (<a href=\"https:\/\/www.councilofnonprofits.org\/running-nonprofit\/administration-and-financial-management\/fiscal-sponsorship-additional-resources\" target=\"_blank\" rel=\"noopener\">Memorandum of Understanding<\/a>).<\/p>\n<p>2. The sponsor creates either:<\/p>\n<ul>\n<li>A dedicated <i>project account<\/i>, or<\/li>\n<li>A simple <i>donation page<\/i> for your fundraiser.<\/li>\n<\/ul>\n<p>3. Donors give directly to the sponsor.<\/p>\n<p>4. The sponsor handles receipts, accounting, and holding the funds.<\/p>\n<p>5. When you\u2019re ready, the sponsor grants the pooled funds to the two cancer organizations you\u2019ve selected.<\/p>\n<h3>Why fiscal sponsorship works so well for multi-charity fundraisers<\/h3>\n<ul>\n<li>Donors receive tax-deductible receipts right away, with no ambiguity.<\/li>\n<li>No funds pass through you personally, which avoids tax complications and builds trust.<\/li>\n<li>You can pool everything and present a unified fundraising total, something donors may appreciate.<\/li>\n<li>Sponsors are experienced at managing donor-designated gifts, reporting, and compliance.<\/li>\n<li>Your fundraiser appears more official, which can increase giving.<\/li>\n<\/ul>\n<h3>What it costs<\/h3>\n<p>Most fiscal sponsors charge a <b>5\u201310% administrative fee<\/b>. This covers accounting, monitoring, and processing donations. The fee should be part of your written agreement.<\/p>\n<h3>Who offers fiscal sponsorship?<\/h3>\n<ul>\n<li>Community foundations<\/li>\n<li>Nonprofits focused on health or social impact<\/li>\n<li>Organizations listed in the <a href=\"https:\/\/www.fiscalsponsors.org\/member-directory\" target=\"_blank\" rel=\"noopener\">National Network of Fiscal Sponsors<\/a> or the <a href=\"https:\/\/fiscalsponsordirectory.org\/directory-listings-by-state-alpha-ordered\/\" target=\"_blank\" rel=\"noopener\">Fiscal Sponsor Directory<\/a><\/li>\n<\/ul>\n<p>If you have a nonprofit you already support who you think may fit the bill, it\u2019s a good idea to approach them first and see if they\u2019d be amenable to serving as your sponsor. If you\u2019re already a donor or volunteer there, they may agree to a minimum fee.<\/p>\n<h2>(2) Charity-hosted fundraising pages: A simple, direct, low-effort option<\/h2>\n<p>If your two chosen cancer-related nonprofits already use modern <a href=\"https:\/\/bloomerang.com\/blog\/peer-to-peer-fundraising-platforms\/\">fundraising platforms<\/a>, they may create <b>peer-to-peer<\/b> or <b>team pages<\/b> for you.<\/p>\n<h3>How this works<\/h3>\n<ul>\n<li>Each nonprofit creates a special fundraising page for your campaign.<\/li>\n<li>You share the links with your community.<\/li>\n<li>Donors click the page corresponding to the charity they wish to support.<\/li>\n<li>The charity receives donations directly.<\/li>\n<li>The charity issues receipts automatically.<\/li>\n<\/ul>\n<h3>Pros<\/h3>\n<ul>\n<li>No admin work for you beyond promotion.<\/li>\n<li>Donors get automatic receipts.<\/li>\n<li>You\u2019re not handling money at all, eliminating compliance risks.<\/li>\n<li>Easy to set up if the nonprofit supports <a href=\"https:\/\/bloomerang.com\/blog\/launching-a-peer-to-peer-campaign-7-strategies-for-nonprofits\/\">peer-to-peer campaigns<\/a>.<\/li>\n<li>Automatic tracking of total raised per page &#8212; the platform shows the running total and progress toward goals.<\/li>\n<\/ul>\n<h3>Cons<\/h3>\n<ul>\n<li>You cannot combine totals across two separate fundraising pages automatically; this must be done manually.<\/li>\n<li>The nonprofits must agree to create the pages\u2014and not all will.<\/li>\n<\/ul>\n<h2>2. If your donors don\u2019t care about tax deductions<\/h2>\n<p>If your donor base is small, personal, informal, or simply unconcerned about deductibility, you can gather contributions into a single shared account and later donate the total to the charities of your choice. Transparency is essential to protect trust. Donors must understand <b>their gift is not tax-deductible <\/b>because they are giving to you, not a charity. You, in turn, pledge to donate the pooled funds to charity.<\/p>\n<h3>Saving the pooled funds in a segregated account<\/h3>\n<p>Alas, there are no good apps of which I\u2019m aware that will accomplish this for you. A start-up called <a href=\"https:\/\/every.to\/p\/my-company-died-learn-from-my-mistakes#:~:text=Braid%20was%20around%20from%202019,fintech%20is%20far%20from%20over.\" target=\"_blank\" rel=\"noopener\">Braid looked promising, but dissolved in 2023<\/a>. <a href=\"https:\/\/support.gofundme.com\/hc\/en-gb\/articles\/203603984-Choosing-a-fundraiser-type#01HGH813WHW6V72ZP1PHS8QNPX\" target=\"_blank\" rel=\"noopener\">GoFundMe<\/a> is an option if you\u2019re raising for a <i>single<\/i> charity, but will not work if you have multiple beneficiaries.<\/p>\n<p><b>The only truly compliant option is a segregated personal bank account<\/b> (or sub-account) dedicated to this purpose. This works for bookkeeping, but the responsibility and risk fall on you. This approach works when:<\/p>\n<ul>\n<li>Donors personally know and trust you.<\/li>\n<li>The campaign is small and informal.<\/li>\n<li>No one expects a tax receipt.<\/li>\n<li>You are transparent that the money flows through <i>you.<\/i><\/li>\n<\/ul>\n<h3>Directly encourage donors to give to the charities on their own<\/h3>\n<p>Another low-complexity path is simply to encourage donors to give directly to each charity via each of their official websites.<\/p>\n<ul>\n<li>You provide donors with the two official donation links.<\/li>\n<li>Donors receive receipts directly from each organization.<\/li>\n<li>There are no administrative fees<\/li>\n<\/ul>\n<p>The only downside is you cannot pool the donations into one gift. And if you care about reporting back to donors regarding how much you collectively raised, the only way to accomplish this is to ask donors to self-report the size of their donation so you can track total giving. Realistically, a lot of your donors will want to keep the size of their donations anonymous.<\/p>\n<h2>Which path should you take? A simple guide<\/h2>\n<h3>If donors want tax deductions:<\/h3>\n<p><b>Best choice: Fiscal sponsorship<\/b><\/p>\n<ul>\n<li>Pools funds<\/li>\n<li>Keeps everything compliant<\/li>\n<li>Sponsor issues receipts<\/li>\n<li>Most professional-looking<\/li>\n<li>Slight administrative fee<\/li>\n<\/ul>\n<p><b>Good Alternative: Charity-hosted fundraising pages<\/b><\/p>\n<p>If a charity uses a P2P platform, and you create a personal fundraising page under their umbrella:<\/p>\n<ul>\n<li>All donations are made directly to the charity<\/li>\n<li>Donors receive their own tax receipts from the charity<\/li>\n<li>You get a visible tally of total money raised<\/li>\n<li>You never touch the funds<\/li>\n<li>You can easily show your progress toward a goal<\/li>\n<\/ul>\n<h3>If donors don\u2019t need or care about tax deductions:<\/h3>\n<p><b>Best choice: Set up your own segregated bank account.<\/b><\/p>\n<ul>\n<li>Easy to set up<\/li>\n<li>Lets you pool collected funds so you can report back on the total to your donors<\/li>\n<li>No tax deduction (true either for donors or you personally, as money collected from others, ethically, is not your charitable gift<\/li>\n<\/ul>\n<h2>Final thoughts<\/h2>\n<p>Whether your donors prioritize tax deductions or simply want to support a meaningful cause with no fuss, you can choose a structure that fits the scale, tone, and goals of your fundraiser.<\/p>\n<ul>\n<li>If your priority is pooling the money and <b>presenting a unified gift<\/b>, fiscal sponsorship is the most flexible, credible, and compliant option.<\/li>\n<li>If your priority is <b>simplicity<\/b>, charity-hosted pages or a segregated bank account may work best.<\/li>\n<\/ul>\n<p>Hopefully I\u2019ve been able to shine a bit of a light so you\u2019re no longer in the dark.<\/p>\n<p><i>\u2014 Charity Clairity (<em>Please use a pseudonym if you prefer to be anonymous when you\u00a0<a href=\"https:\/\/bloomerang.formstack.com\/forms\/ask_an_expert\" target=\"_blank\" rel=\"noopener\">submit your own question<\/a>, like \u201cIn the Dark&#8221; did.)<\/em><\/i><\/p>\n<p><em>Have you run an online fundraiser for multiple charities? Let us know in the comments.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our\u00a0Ask An Expert\u00a0series features real questions answered by\u00a0Claire Axelrad, J.D., CFRE, also known as Charity Clairity.\u00a0Today\u2019s question comes from someone who wants to know the best way to run an online fundraiser for multiple charities:\u00a0\u00a0 Dear Charity Clairity, My son and I want to start a fundraiser for two cancer-related charities. We tried to have [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":141685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1],"tags":[],"cause":[],"article_author":[],"webinar_host":[],"topic":[393,344],"class_list":["post-144294","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","topic-ask-an-expert","topic-fundraising-general"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast 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is more than a fundraising platform, it is a total Giving Platform, an all-in-one fundraising solution with nonprofit CRM, online giving, peer-to-peer campaigns, auctions, and volunteer tools. Bloomerang synchronizes donor data across these nonprofit tools and empowers fundraisers to raise more.\",\"email\":\"info@bloomerang.com\",\"telephone\":\"1-866-332-2999\",\"numberOfEmployees\":{\"@type\":\"QuantitativeValue\",\"minValue\":\"501\",\"maxValue\":\"1000\"},\"address\":{\"@type\":\"PostalAddress\",\"streetAddress\":\"9120 Otis Avenue\",\"addressLocality\":\"Indianapolis\",\"addressRegion\":\"IN\",\"postalCode\":\"46216\",\"addressCountry\":\"US\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/bloomerang.com\\\/#\\\/schema\\\/person\\\/ab1b773459a2a4d53264fc80f7df61cf\",\"name\":\"Claire Axelrad\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/bloomerang.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/Claire-Axelrad_avatar_1517952685-96x96.jpg\",\"url\":\"https:\\\/\\\/bloomerang.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/Claire-Axelrad_avatar_1517952685-96x96.jpg\",\"contentUrl\":\"https:\\\/\\\/bloomerang.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/Claire-Axelrad_avatar_1517952685-96x96.jpg\",\"caption\":\"Claire Axelrad\"},\"description\":\"Claire Axelrad, J.D., CFRE, will inspire you through her philosophy of philanthropy, not fundraising. After a 30-year development career which earned her the AFP \u201cOutstanding Fundraising Professional of the Year\u201d award, Claire left the trenches to begin her coaching\\\/teaching practice. Clairification School has been called \u201cthe best bargain in fundraising!\u201d Claire is also featured expert and Chief Fundraising Coach for Bloomerang, She\u2019ll be your guide, so you can be your donor\u2019s guide on their philanthropic journey. A member of the California State Bar and graduate of Princeton University, Claire currently resides in San Francisco California. If you like craft fairs, baseball games, art openings, vocal and guitar, and political conversation, you\u2019ll like to hang out with Claire.\",\"sameAs\":[\"https:\\\/\\\/www.linkedin.com\\\/in\\\/claireaxelrad\",\"https:\\\/\\\/x.com\\\/CharityClairity\"],\"url\":\"https:\\\/\\\/bloomerang.com\\\/blog\\\/author\\\/claire-axelrad\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"How to run an online fundraiser for multiple charities","description":"This question comes from someone who wants to know the best way to run an online fundraiser for multiple charities.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/bloomerang.com\/blog\/whats-the-best-way-to-run-an-online-fundraiser-for-multiple-charities\/","og_locale":"en_US","og_type":"article","og_title":"What\u2019s The Best Way To Run An Online Fundraiser For 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