Olivia Cavallaro Culture 07.20.2022 04:Jul AM EDT

Twitch Launches Fundraising Tool for Streamers Called Twitch Charity — So How Does It Work?

FRANCE-INTERNET-GAMING-FEATURE — A gamepad is pictured as a screen displays the online Twitch plateform in Toulouse, southwestern France, on June 15, 2021. (Photo by Lionel BONAVENTURE / AFP) (Photo by LIONEL BONAVENTURE/AFP via Getty Images) Photo : LIONEL BONAVENTURE / Contributor

The video game live streaming service announced a closed beta of a built-in fundraising tool for users.

Twitch is creating a seamless fundraising experience for its creators who wish to raise money for charity through its upcoming built-in fundraising tool called Twitch Charity. The Amazon-owned company launched a closed beta of the fundraising tool for streamers, in which a select group of partners and affiliates had first access to the exciting new feature.

In a blog post, Twitch acknowledged the "hassles of running a charity stream - tracking donations, converting subs and Bits, managing multiple programs and apps at once," which they addressed with the new Charity section, which will be available on the Creator Dashboard. Simply put, the company established the fundraising tool for streamers because they wanted to "[simplify] a lot of logistical hassles."

How Does Twitch Charity Work?

Previously, when creators decide to put on charity streams to help raise funds for organizations and causes they support, they would receive donations through subsand Bits, which is Twitch's virtual currency. With Twitch Charity, creators can now raise funds directly on the platform, abolishing the need to rely on third-party portals such as Tiltify to actually forward the funds to their chosen organizations, Engadget rep[orted. Twitch Charity has effectively cut out the middle man and has made it easier for creators to host a fundraiser and focus on what they do best: create.

With Twitch Charity, streamers and creators can easily go into "charity mode," which then enables a "Donate to Charity" button on their viewers' end that they can use to donate. Donations will be processed in partnership with PayPal Giving Fund. Unlike traditional previous charity streams that utilized a third party that got a cut from the total amount of donations, Twitch's fundraising tool for streamers enables creators to collect all proceeds and does not take away any cuts or tax incentives.

When Will Twitch Charity Be Available to Creators?

Twitch said that it has begun its live beta of the fundraising tool for streamers for some creators. The company added that they are "starting small with a limited amount of charities" but promised that they will "add many more soon," The Verge reported. Twitch expects to roll out the Charity feature to most of its partners and affiliates later this year.

Fundraising has long been one of the most exciting and wonderful parts of Twitch. It has also become a significant moneymaker in the last few years. Creators who hold charity streams often raise up to six or seven figures in total, especially if the event is hosted by a major streamer or features a celebrity. Other well-known creators are able to raise millions of dollars through charity streams, such as last year's multistream Z Event that raised up to $11.5 million for Action Against Hunger in just about 72 hours. Dubbed "the biggest French charity streaming marathon," by Dot Esports, the three-day event featured more than 50 streamers who hosted various events and set donation goals. The event not only saw an increase in viewership but also doubled the amount raised in 2020.