Online donation campaigns are a fantastic way to reach more donors, but they aren't free. No matter what platform you choose, you will pay a transaction fee. However, there is a surprising amount of variation in the fees you will pay at the top fundraising sites.
Read below to see how the top sites compare.
Background Info: What are these costs?
Most sites will charge:
1) A site fee – typically about 4-5% of the total funds raised
in addition to…
2) A credit card processing fee - typically around 3% per transaction (as most of these sites partner with PayPal).
On average, this results in a total cost of approximately 7-9% of the total raised.
Site fee + PayPal fee = total cost (about 7% - 9%)
Some sites will charge a flat membership fee, often in lieu of taking a cut of the funds raised. These fees typically range from $50-$300. They can be one-time start-up fees or monthly membership fees. This does not, however, eliminate the payment processing fee of about 3% per transaction, which will still be charged through a site like PayPal or WePay. For groups that process a very large volume of payments on a consistent basis, a membership-based site may be an economical choice.
Monthly membership (or start-up fee) + PayPal fee = Total Cost
At MemberPlanet, we only charge a site fee of 5% + 30 cents per transaction – never an external payment processing fee. By avoiding a third-party processing charge we are able to pass on significant savings to you. In addition, we throw in a host of other tools (like email campaigns, online events and online forms) to help make your donation campaign a success. We are the only site to offer all of these tools - in one place.
Here are the rates for some of the most popular funding sites you may have heard of:
Fundly.com: 4.9% site fee + credit card processing fee 3.0% = 7.9%
Gofundme.com: 5% site fee + 2.9% + 30 cents Paypal fee = 7.9% + 30 cents
Gogetfunding.com: 3.5% site fee + 2.9% +30 cents PayPal fee = 6.5% + 30 cents
Causewish.com: 4% site fee +2.9% + 30 cents PayPal fee = 6.9% + 30 cents
4% site fee + 2.9% + 30 cents PayPal fee = 6.9% + 30 cents (If you reach goal)
9% site fee + 2.9% + 30 cents PayPal fee = 11.9% + 30 cents (if you don't meet goal)
Kickstarter.com: 5% site fee + 3-5% Amazon fees = 8-10%
Basic : 5% site fee + 2.9% + 30 cents PayPal = 8%
Featured : 4% site fee + 2.9% + 30 cents PayPal + $49/month site fee = variable total
Royale : 3% site fee + 2.9% + 30 cents PayPal + $199/month site fee = variable total
Razoo.com: 4.9% site fee, includes payment processing.
At MemberPlanet, we work hard to bring you the best overall value for your dollar. Not only do we offer a low cost option for online fundraising, we bring you a whole tool set of features to help make that campaign a success.
It's important to choose the right platform for your needs, so we encourage you to explore all of your fundraising options. If you would like to learn more about fundraising or managing your group, don't hesitate to reach out! email@example.com