Insights

Donation Processing Fees: What Charities Actually Pay

Platform fees, processing fees, monthly fees. It's confusing. We break down exactly what charities pay and how to minimize costs.

Givelayer Team

Givelayer

2 min read

Donation Processing Fees: What Charities Actually Pay

When a donor gives $100 to your charity, how much actually reaches your mission? The answer varies wildly depending on which platform you use.

The Three Types of Fees

1. Platform Fees

This is what the donation platform charges for using their service. It ranges from 0% to 5% depending on the provider.

  • Givelayer: 0% with donor tip, 2% without
  • CanadaHelps: 4% on one-time donations
  • Givebutter: 0% with tip, 3% without

2. Payment Processing Fees

These go to the payment processor for handling the credit card transaction. The industry standard is 2.9% + $0.30 per transaction, and registered nonprofits often qualify for a discounted rate.

On Givelayer, when a donor adds the optional tip that tip covers the processing fee as well as our platform fee, so the charity receives the whole donation. Without a tip, processing is passed through at cost.

3. Monthly/Setup Fees

Some platforms charge monthly subscriptions, especially for premium features:

  • Givelayer: $0/month, always
  • Donorbox: $0 to $399/month depending on plan
  • Raisely: $0 to $119/month

Real-World Impact

On $50,000 in annual donations, here's what each platform costs:

PlatformTotal feesYour charity keeps
Givelayer (with tips)$0$50,000
CanadaHelps~$2,000$48,000
Donorbox (Pro)~$3,175$46,825

How to Minimize Fees

  1. Choose a platform with optional tipping, so donors can cover the cost
  2. Encourage recurring giving, which lowers per-transaction overhead
  3. Use direct bank transfers for large donations when possible

The Givelayer Approach

We believe charities and nonprofits shouldn't have to choose between features and fair pricing. That's why Givelayer offers automated receipts, branded donation pages, and global support. When a donor chooses to tip, that tip covers our platform fee and the card processing both, and your charity keeps 100% of the donation.

Compare all pricing →

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GI

Givelayer Team

Writing about fundraising, donation technology, and the future of giving at Givelayer.

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