What are Challenge Funds?

Nonprofits often have many questions about Challenge Funds – what they are, how organizations can get them, etc. Hopefully we can shed some light on this mystery!


challenge1What are Challenge Funds?

Challenge funds are funds that are put up by a donor (or group of donors) to “challenge” others to give, usually to give a certain goal amount. Challenge Funds can come in many different forms and worded with a variety of restrictions and limits depending on the donor. Some examples are:

  • A Challenge Fund donor will give an additional $5,000 if the organization raises $20,000 on North Texas Giving Day.
  • For every $100 donation an organization receives, a donor will donate an additional $10.
  • If 25 people donate at least $100, a donor will donate $1000.
  • A group of donors will match all North Texas Giving Day donations up to $10,000.

The perimeters around the Challenge Funds can vary to be whatever the donor and/or organization want. The idea behind Challenge Funds is to challenge the organization and it’s donors to raise a certain amount on North Texas Giving Day in order to get these additional funds.

challengeHow are Challenge Funds raised?

Challenge Funds are raised by the organization and they can come from many different places. Some examples:

  • Board members – have each board member donate a certain amount into a pool for your organization’s Challenge Fund
  • Large donors from past Giving Days – ask if this year they’d like their gift to be a Challenge Fund
  • Local businesses – leverage past business partnerships for Challenge Funds and also be eligible for the Best Business-Nonprofit Partnership prize

Who manages Challenge Funds?

Challenge Funds are completely controlled by the organization, not Communities Foundation of Texas or North Texas Giving Day. Challenge Funds are solicited by an organization and released directly to an organization by the donor. These funds are not given through northtexasgivingday.org and should be given directly to the organization by the donor.


For more information about Challenge Funds, watch the video below or visit our FAQ page.

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