Goodworld operates as a payment platform that sits between donors and nonprofits. Because of this architecture, refunds must be processed through Goodworld, rather than directly through Stripe. This ensures that funds, records, and reporting remain accurate across all parties involved—the donor, the nonprofit, and Goodworld.
While Stripe processes the underlying payment, it does not manage the transfer reversals or system-level updates required to maintain accounting integrity within a multi-party platform like Goodworld.
Understanding the Context
Goodworld uses Stripe Connect, not a standard single Stripe account. This platform-based architecture allows Goodworld to support thousands of nonprofits while maintaining proper fund segregation, security, and compliance.
Because donations flow through multiple accounts, refunds require more than simply reversing the original charge.
How Funds Flow
When a donation is made on Goodworld, the funds move through several steps:
Donor payment → Funds are processed into Goodworld’s primary Stripe account
Platform fee (1%) → Transferred to Goodworld’s revenue account
Net donation amount → Transferred to the nonprofit’s connected Stripe account
This multi-step flow enables scale and compliance—but it also means that refunds require coordinated reversals across accounts.
Why Goodworld Manages Refunds
Transfer Reversals Are Required
Before a donor can be refunded, Goodworld must:
Pull back funds that have already been transferred to the nonprofit
Reverse the platform fee transfer
Then refund the original charge to the donor
Stripe alone can reverse a charge—but it cannot reverse downstream transfers that have already occurred.
Account & Record Integrity
Processing refunds through Goodworld ensures that:
Donation records are accurately updated
Financial reports remain correct
Tax receipts and acknowledgments are handled properly
This protects both nonprofits and donors from reporting discrepancies.
Security & Control
Refunds are restricted to authorized users within the platform. This allows Goodworld to:
Validate that a donation is eligible for a refund
Prevent unauthorized or accidental refunds
Maintain audit-ready financial controls
The Refund Process
Once a refund is initiated through Goodworld:
Required transfers are reversed across accounts
Donation records are updated system-wide
The refund is issued back to the donor’s original payment method
Timeline:
Refunds typically complete within 5–10 business days, depending on bank processing times.
Benefits for Your Organization
Using Goodworld’s refund process provides:
Complete audit trail – Every refund is tracked and documented
Accurate tax handling – Donation receipts and records stay aligned
Multi-party coordination – Goodworld manages the complexity of transfer reversals
Enhanced security – Only approved users can process refunds
Goodworld’s refund process is designed to protect donors, nonprofits, and financial integrity across the platform. By managing refunds centrally, Goodworld ensures accurate reporting, proper fund reconciliation, and a secure, auditable experience—without placing the burden of multi-account coordination on your team.
If you have questions about refunds, schedule a support call with our success team.