Online giving platforms have become a go-to solution for individuals and charities looking to raise funds quickly. While these platforms offer convenience and reach, a recent donor's experience highlights a critical issue that deserves our attention.
A donor's story:
"I recently donated to help raise funds for the funeral of a family friend. It was a difficult time, with grief and loss fogging my brain.
The fundraiser was on a giving platform with a default, adding a 17% tip on top of my donation, which went to the platform. This increased the amount I had intended to donate.
I was struggling to see through the fog, and I wanted to donate as quickly and easily as possible, but it wasn't clear to me that I could change the tip amount.
I had to reduce my donation amount so that both combined totalled the amount I could give, meaning the funeral fund received less, thanks to the platform.
Looking into it after the fact with a clearer mind, I'm frustrated that I couldn't easily see how to remove the tip.
I'm frustrated that a tip was added by default in the first place.
Donation processes need to be as easy as possible during difficult times, and this was not my experience. I wish I could have donated the amount I intended to help with the funeral costs.
I will not be donating via this giving platform again."
A grieving individual attempting to contribute to a friend's funeral fund encounters an unexpected hurdle. The giving platform automatically adds a 17% "tip" to the donation, effectively reducing the amount reaching the intended cause. In a moment of emotional distress, navigating this added complexity becomes an unnecessary burden.
This story raises several important points for fundraising professionals to consider:
Transparency is Paramount
Default settings that add fees or tips should be clearly visible and easily adjustable. Donors should never feel blindsided by additional costs.
Emotional Context Matters
Cognitive function can be impaired during times of grief or crisis. Giving processes must account for these scenarios, prioritising care, clarity, and simplicity.
Every Pound Counts
For many causes, especially fundraisers like funerals, every contribution is significant. Platform fees that reduce these donations can have real-world impacts on individuals in need.
Trust is Fragile
This donor's experience has led them to vow never to use this platform again. One negative experience can permanently damage donor trust and future giving potential.
The Ethics of Platform Fees
While giving platforms need to sustain their operations, we must question whether default tips are the most ethical approach, especially at such high percentages. Known fees paid by the charity are one thing, but taking additional 'tips' from the donor is another.
As leaders in the digital NFP sector, it's our responsibility to advocate for donor-centric giving experiences. Charities must ensure that their technology providers and platforms align with the values of transparency, empathy, and maximising impact for the cause itself.
What seems like a quick win at the time may result in you losing donors going forward, thanks to these inefficient, non-user-friendly third-party platform providers.
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