Fees drive up expense ratios
Regardless of what they are called these days, transaction fees and platform fees significantly eat into dollars raised in fundraising campaigns. Handing over 5%-10% of your donations to a software vendor makes it virtually impossible to maintain stellar expense ratios. Throw in marketing, event expenses, staffing, etc…and you have a campaign that can’t possibly keep expenses in the 15% range.
Ask your donors to share in or eliminate those pesky fees by giving them the opportunity to add the transaction fees to their donation. In this donation form, a donor can click “Yes, I would like 100% of this transaction to go to Cupid’s and will add 2.75% for card processing costs.” Their donation total is easily updated to include the transaction fees.
Data shows that peer to peer donors opt in to eliminate fees
In SWEET! Peer to Peer platforms, 66% of donors use this feature. We were amazed by the frequency but it makes complete sense when you consider the nature of peer to peer giving. In peer to peer transactions, the donor is giving to their friends and family and is more likely to opt-in for a feature to add a few more dollars to their donation.