Online fundraising with a 7.5% transaction fee

Online Fundraising Transaction Fees

If your software vendor charges a 7.5% transaction fee for your online donations, you are getting ripped off.

There is no way that a software vendor deserves $7500 for every $100,000 raised online for perpetuity.  No way.

If you are paying this, you should apologize to your donors.

Comments

[Jono Smith]

What if the software is free? Some vendors charge higher transaction fees because they don't charge a license fee for their software. That's not necessarily a rip off.

[Syam Buradagunta]

Jono, thanks for checking in and the comment. It's a philosphical difference to be sure. My stance has always been that the fee - however it is applied - should be capped. NPO's trying to maintain good expense ratios will have difficulties if 7.5% is immediately skimmed off the top.