In fundraising, every penny counts. Charities work tirelessly to maximise the impact of each donation, but processing fees—those small but unavoidable costs associated with payment gateways—chip away at funds intended for good causes. The good news? Many donors are happy to help.
Across hapi and hapiLite sites last year, 53% of gifts had processing fees added, resulting in a total saving of £13,508 for charities. That's £13,508 that went directly to frontline services rather than being lost to transaction costs.
The Power of a Simple Ask
When donors understand that covering a small processing fee ensures their whole intended donation reaches the cause they care about, the figures show that over half of donors are more than willing to do so. It's a small additional cost to them but a significant financial boost for charities.
Yet, many charities still absorb these fees rather than giving donors the option to help cover them. Why? Some fear it might deter donations, but the data tells a different story.
How Much Are Charities Losing?
For UK charities, JustGiving and Enthuse apply a payment processing fee of 1.9% plus £0.30 per transaction.
Given these fee structures, the total amount a charity pays in processing fees can be substantial, especially for larger donation volumes.
Charities using platforms like these often pay substantial sums in processing fees without even noticing, as the fees are taken before funds are sent to the charity. This amount could be cut in half by implementing a feature that asks donors if they'd like to cover the cost.
By implementing a feature that asks donors to cover these processing fees, charities can significantly reduce their expenses.
It's an easy, donor-friendly solution that:
✅ Keeps more money in the hands of charities
✅ Gives donors transparency and choice
✅ Minimises the hidden costs of online giving
When do donors get frustrated?
While JustGiving does not offer a way for donors to cover processing fees, it does ask donors to cover its operating costs through a voluntary tip. However, this tip goes to JustGiving itself, not the charity.
The default setting includes the tip, and donors need to manually select the 'enter custom amount' option to set the tip to zero if they prefer not to add one. Some users have reportedly found adjusting or removing the tip less straightforward than desired. This practice has led to discussions about transparency and user experience on the platform. It's also crucial for donors to be aware that these additional funds do not go to the charities they are supporting.
On the other hand, Enthuse does allow donors to cover processing fees, but this option is also ticked by default. This practice can lead to a poor user experience, as donors often feel misled when they see a higher total amount without intentionally opting in.
Transparency and Empowering Donors
Fundraising platforms should empower charities with the tools to retain as much of each donation as possible and ensure that donors can make clear and informed choices. Giving donors control over whether to cover processing fees fosters trust and a positive donation experience rather than making them feel like they've been tricked into paying extra.
Donors should never be defaulted into additional costs without clear communication. Instead, platforms should present processing fee options in a way that encourages support while maintaining transparency. Donors who understand where their money is going are far more likely to contribute willingly.
Time to Flip the Script
By offering donors the option to cover processing fees—without default settings or hidden selections—charities can reduce unnecessary losses and maximise every contribution.
If your platform isn't transparently offering this functionality, you have to ask: How much money is being left on the table and how many donors are put off from donating again?
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