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Donation Platform Fees: What Donation Platforms Really Cost
Every online gift your nonprofit receives passes through a few hands before it reaches your bank account. Each one may take a small cut. On a single gift, the cut looks tiny. Over a full year of giving, it can add up to the cost of a program, a staff role or a campaign.
This guide explains the main types of donation platform fees, how they stack, and how to compare renting a platform with owning your own giving page. It includes a worked example so you can run the numbers for your own organization.
The four main types of donation platform fees
Most platforms use some mix of the fees below. Some use only one. Some use all four. The pricing page doesn't always make the full picture clear, so it helps to know what to look for.
1. Payment processing fees
This is what the card network and payment processor charge to move the money. It is usually a percentage of the gift plus a small fixed amount per transaction. You pay this on almost every online gift, whatever platform you use. Some processors offer discounted rates to registered nonprofits, but you often have to apply for them.
Because of the fixed per-transaction part, processing fees hit small gifts harder. A small monthly gift loses a bigger share to fees than a large one-time gift does.
2. Platform fees
This is what the donation software company charges for its service. It is usually a percentage of each gift, taken on top of processing. Some platforms bundle processing and platform fees into one rate. Others list them separately. Either way, ask for the total you will pay per gift.
3. Donor-covered fees and "tips"
Many platforms let donors choose to cover the fees on their gift. That can offset much of your processing cost. It is worth turning on.
"Tips" are different. Some platforms advertise no platform fee to the nonprofit, then ask donors to add a tip to the platform at checkout. That tip goes to the platform, not to you. Donors may think it's going to your cause. It can also sit next to your ask and compete with it. If a platform is "free," check where its revenue comes from.
4. Subscription pricing
Some platforms charge a flat monthly or annual fee instead of, or in addition to, a percentage. Subscriptions can be cheaper for organizations that raise a lot online, because the cost doesn't grow with each gift. They can be more expensive for smaller organizations. Watch for pricing tiers that lock key features, such as recurring giving, custom branding or CRM integrations, behind higher plans.
Other costs to watch for
- Payout fees or delays. Some platforms hold funds for a period or charge to transfer them to your account.
- Per-user or per-seat fees. Costs that rise each time you add a staff member or volunteer.
- Integration costs. Paid add-ons or third-party tools needed to connect the platform to your CRM or email system.
- Event and peer-to-peer add-ons. Ticketing and fundraising pages may be priced separately.
- Switching costs. The staff time and lost recurring donors that come with moving to a new platform later.
A worked example
This example uses hypothetical round numbers. It does not reflect any specific platform's pricing. Swap in your own figures and the rates from your current contract.
Say a nonprofit raises $1,000,000 a year online, across 10,000 gifts that average $100 each. For this example, assume processing costs 2.5% plus $0.30 per gift.
- Processing: 2.5% of $1,000,000 is $25,000. Add $0.30 × 10,000 gifts, which is $3,000. Total processing: $28,000.
Now compare three hypothetical setups.
Option A: Percentage platform
The platform charges a 3% fee on top of processing. That's $30,000 in platform fees, plus $28,000 in processing. Total: $58,000 a year. If the organization grows, this cost grows with it.
Option B: Subscription platform
The platform charges $500 a month with no percentage fee. That's $6,000 a year, plus $28,000 in processing. Total: $34,000 a year. The cost stays flat as giving grows, unless the organization needs a higher tier.
Option C: Owned giving page
The organization builds its own donation page connected directly to a payment processor. Say hosting, security updates and support cost $6,000 a year, plus a one-time build cost. Processing is still $28,000. Ongoing total: $34,000 a year, with no platform percentage and full control of the page and data.
In this example, Option A costs $24,000 more per year than Options B or C. Over five years, that's $120,000. If half of donors choose to cover fees, all three options get cheaper, but the gap between them stays.
Your real numbers will differ. The point is to put every fee on one sheet and compare the total, not the headline rate.
Owning vs renting your donation platform
Fees are one part of the decision. The bigger question is whether you want to rent your giving tools or own them.
Renting a platform
- Fast to set up, often in a day.
- Little technical work on your side.
- Features and design are limited to what the platform offers.
- Donors may leave your site for a page that looks like someone else's.
- Costs often rise with your revenue.
- Moving away later can be painful, especially for recurring donors.
Owning your giving page
- The page lives on your site, with your branding, from start to finish.
- You control the donor data and how it connects to your CRM.
- You can design the flow around your programs, campaigns and donor types.
- No platform percentage on each gift. You still pay processing.
- You need a partner or staff member to maintain it.
- There is an upfront build cost.
Renting often makes sense for small or new organizations, or for a one-off campaign. Owning tends to make more sense once online giving is a large, steady part of your revenue, or when you need donor data, events and fundraising in one system.
Questions to ask any donation platform
- What is the total cost per gift, including processing and platform fees?
- Do you ask donors for a tip to your company? Can we turn it off?
- Can donors cover fees, and is that on by default?
- Which features are locked to higher tiers?
- How fast are payouts, and do they cost anything?
- Can we export all donor and recurring-gift data if we leave?
- Can recurring donors be moved to a new processor without re-entering their card?
Frequently asked questions
What is a typical donation platform fee?
It varies widely by platform and plan. Some charge a percentage per gift, some charge a subscription, and some charge nothing to the nonprofit and rely on donor tips. Always compare the total yearly cost at your giving volume, including processing.
Are "free" donation platforms really free?
Usually not. Processing fees still apply, and many free platforms earn money through donor tips shown at checkout. Those tips go to the platform, not your cause.
Should we ask donors to cover fees?
In most cases, yes. Offering donors the choice to cover fees can recover much of your processing cost. Keep the wording clear and the option easy to see.
When should a nonprofit build its own donation page?
Consider it when online giving is a large and steady part of your revenue, when platform percentages are a noticeable yearly cost, or when you need your giving page, donor data and CRM to work as one system.
