How fundraising platform fees work
A supporter may intend to donate $100, but that does not always mean the organization receives $100—or that the supporter is charged exactly $100. The key question is who pays each cost.
Start with a $100 donation
Suppose a payment processor charges 2.9% plus $0.30. This is an illustration, not a universal rate. If the fee comes out of a $100 donation, the organization receives $96.80.
The percentage portion grows with the donation amount. The fixed $0.30 applies to every transaction, so donation count also matters: 100 smaller donations can cost more to process than one donation with the same total value.
| Donation | $100.00 |
|---|---|
| 2.9% processing | −$2.90 |
| Per-transaction fee | −$0.30 |
| Organization receives | $96.80 |
What if the supporter covers the fee?
There are two common approaches. A platform may add an estimated fee to the donation, or it may gross up the charge so the amount left after processing equals the intended donation.
Using the same illustrative 2.9% plus $0.30 rate, a supporter would pay about $103.30 for the organization to receive $100.00. Processing is about $3.30.
That is slightly more than simply adding 2.9% and $0.30 to $100, because the percentage also applies to the extra amount charged.
| Supporter pays | $103.30 |
|---|---|
| Processing | about −$3.30 |
| Organization receives | $100.00 |
What happens when a supporter pays an additional service fee?
Suppose the supporter intends to donate $100.00 and pays another $15.00 at checkout. The card is charged $115.00. At the same illustrative 2.9% plus $0.30 rate, processing is $3.64 after rounding to cents, leaving $111.36.
The remaining $11.36 beyond the intended donation does not automatically belong to one party. Depending on the platform's terms, the extra amount may go to the organization, payment processing, a platform or service provider, an optional tip, or a combination of them.
The Fundraising Platform Matchup keeps four figures separate so you can see the difference.
| Intended donation | $100.00 |
|---|---|
| Additional amount | +$15.00 |
| Total charged | $115.00 |
| Processing | −$3.64 |
| Remaining after processing | $111.36 |
- Online donations
- Organization pays
- Supporters pay extra
- Organization receives
Four costs that are easy to confuse
Payment processing
The cost of moving a card or digital payment. It often has a percentage component, a fixed per-transaction component, or both.
Platform or service fee
A charge for software, campaign support, staffing, prizes, or other services. It may be fixed, percentage-based, or part of a provider share.
Supporter-covered fee
An amount added so the supporter pays some or all costs that would otherwise reduce what the organization receives.
Optional platform tip
A voluntary amount offered to the platform. It is separate from the supporter's intended donation to the organization.
A calculated $0 means no cost was applied in that scenario. Optional—not estimated means a supporter may pay more, but the amount cannot be responsibly predicted as $0.
Where payment processors fit
Most online donations require payment processing. Some fundraising platforms use third-party processors such as Stripe or PayPal; others use different arrangements. The important comparison is not just the processor's name, but how processing costs are calculated and whether the organization, supporter, platform, or another party pays them.
Processing rates and nonprofit eligibility can vary. Confirm the current terms that apply to your organization and payment method.
Why 100% retained can mean different things
A. No transaction fee
In a qualifying flow, the organization receives the intended donation and no transaction fee is deducted from it.
B. The supporter pays extra
The organization receives the intended donation because the supporter covers some or all fees in addition to it.
C. An optional tip is offered
The organization keeps the intended donation while the platform asks the supporter for a separate voluntary amount.
D. A separate service fee applies
A supporter-paid service fee offsets processing, platform, or program costs so the organization may keep the intended donation.
Each approach has a different checkout experience and cost allocation. “100% retained” describes the organization's result, not necessarily the supporter's total charge.
Which approach should a parent group choose?
There is no universal answer. A group focused on maximizing fundraiser proceeds may accept supporter-paid additions. Another may absorb processing to keep checkout simpler. A school that wants coaching, staffing, incentives, or event support may choose a full-service program even when the provider keeps a larger share. A board that wants fundraising connected to events, volunteers, communications, and records may prefer a broader parent group platform.
Before comparing prices, it helps to understand the three types of fundraising platform .