F€€$. It’s the four-letter phrase in fundraising software program.
Some suppliers make it seem to be a PhD is required in nonprofit expertise to type out what a nonprofit will actually be paying to lift essential mission {dollars}. And, as everybody is aware of, there may be usually a excessive price to a different four-letter phrase, “free.”
So, what charges are commonplace and essential to have safe, working expertise and assist when it’s wanted? And what charges are firms utilizing to nickel and dime a corporation, making their “free” contract truly too good to be true?
Educate your self on the forms of charges which can be a part of fundraising software program and you’ll then hold the different four-letter phrases out of the method.
Sorts of Charges
Platform or Software program Subscription
Platform subscriptions cowl precise software program utilization.
Some suppliers cost for every characteristic reminiscent of auctions and peer-to-peer fundraising, whereas others, like GiveSmart, embrace all fundraising options for one flat price. Different firms additionally could have a fee construction that requires nonprofits with bigger budgets to pay extra for a similar factor others are paying much less for.
Software program subscriptions ought to cowl issues like safety, assist workers, how-to guides, common platform updates, service provider accounts, and compliance. Some firms have advert hoc charges for a few of these obligatory issues.
Credit score Card Charges and PayPal/Venmo
Any fee processor, just like the service provider GiveSmart makes use of, expenses bank card and digital fee (PayPal/Venmo) charges. These charges cowl what the bank card firm is charging the fee processor, safety encryption, expertise, and extra.
GiveSmart due to this fact has a regular bank card price of three.5% (3.95% for American Categorical), which is similar for each nonprofit, that donors can voluntarily cowl if the nonprofit offers them the choice. With 55% of bank card charges lined by donors utilizing GiveSmart, it’s a simple approach to hold platform utilization prices for nonprofits decrease.
A few of our rivals add a per transaction price on prime of the bank card price. Others fluctuate the bank card price relying on the amount of donations or the quantity of a donation. Nonetheless others add on ticketing or different charges, too.
It may well develop into almost unattainable to estimate what web income will probably be utilizing a few of our rivals.
With GiveSmart, whether or not a corporation raises $1 or $1 million, their software program contract and bank card charges are mounted, and we don’t add on increasingly more charges like some others do.
Characteristic Charges
GiveSmart provides all fundraising options with each contract. Curious to attempt a peer-to-peer marketing campaign? Go for it! Wish to supply donors the choice to offer by way of Apple Pay? These gained’t require a contract addendum or extra fee to make use of with GiveSmart.
Many different software program firms both don’t supply many fundraising or fee options in-platform, require a third-party connection, and/or cost extra to make use of every characteristic.
Service provider Charges
The fee processing service provider additionally expenses month-to-month dues for each account, along with bank card charges. So, firms like GiveSmart make a fee per nonprofit we assist, however we account for that inside our software program subscription value.
Most of our rivals cost individually for service provider charges. And, some platforms bury that cost within the advantageous print of a contract, so nonprofits find yourself with an unwelcome shock.
Skilled Providers and Coaching Charges
Whereas GiveSmart provides strong, self-service coaching and is straightforward to make use of, some organizations with restricted assets select to work with our Providers Staff on web page setup, day-of-event assist, and extra. It’s an non-obligatory service that many organizations discover helpful, and our Providers Staff helps many nonprofits increase extra.
Different platforms supply extra companies, too, and prices can fluctuate.
Assist or Assist Desk Charges
GiveSmart’s assist staff is staffed by precise individuals, who can speak our prospects via considerations by way of chat or telephone morning, midday, or night time, and on weekends, too.
Different software program firms cost nonprofits for a sure variety of service credit, and when the staff makes use of them up, they’re both on their very own or should purchase extra. Most of these firms don’t supply assist within the evenings or weekends, so if one thing comes up throughout an occasion, a nonprofit could miss out on donations as a result of technical difficulties.
Texting Charges
Some software program firms cost further for text-to-donate, both by including one other price or by making nonprofits contract with a 3rd celebration to allow texting.
GiveSmart contains text-to-donate in each contract, so nonprofit organizations can add this excessive achievement, donate-from-anywhere technique to assist them increase extra, with out the pointless problem.
Ticketing Charges
If utilizing a ticketing characteristic, that won’t even embrace visitor administration like GiveSmart does, some platforms cost one more price. That is on prime of a bank card price and transaction price, that means gala tickets or golf foursomes could carry three surcharges.
GiveSmart doesn’t cost ticketing charges, so you’ll be able to promote out your subsequent occasion with out the concern!
Tipping
Some platforms declare to be “free” to nonprofits. Whereas a lot of these cost for assist and bank card charges, these software program firms might also instill a tipping mannequin.
On this means, nonprofits ask their donors to tip to cowl the software program price. This can be along with asking donors to voluntarily cowl an industry-standard bank card price. This tipping mannequin asks donors to pay a nonprofit’s payments, on prime of donating. If a nonprofit chooses to not use a tipping mannequin, then the “free” platform could then cost a sliding scale platform price.
“Free” platforms could require nonprofits to pay to use Apple Pay, host auctions, and extra.
Per-Transaction Charges
Some nonprofit software program firms cost per-transaction charges. This implies, that on prime of the bank card price, donors pay extra each time they take a look at.
GiveSmart doesn’t cost per-transaction charges, ever, so web income doesn’t change relying on what number of and what sort of donations are given. Whereas it appears nominal, if a nonprofit has a number of alternatives for checkout, reminiscent of on-course video games, mulligans, or an early-bird raffle, donors are being requested to pay an additional bit each time.
Some platforms fluctuate the per-transaction price primarily based on the kind of donation. In some instances, individuals can pay extra throughout an public sale buy, let’s say, than an annual marketing campaign reward.
Utilization Charges
Some software program firms cost if nonprofits use the platform “an excessive amount of” or “too little/in no way” throughout sure timebound durations.
If a nonprofit has an distinctive month, they shouldn’t should pay extra as a result of they obtained extra donations.
Instruments reminiscent of embeddable donation varieties and recurring giving ought to yield giving each month. However, in the event that they don’t, a nonprofit shouldn’t should pay one more month-to-month price for non-usage.
Inquiries to Ask About Charges and Your Potential Fundraising Platform
Take into account bringing these inquiries to a demo, in order that any stakeholders can greatest consider choices. If the gross sales staff is cagey, contemplate determining what your web income will probably be should you tack on extra charges.
What charges are utilized within the system?
Be very particular about what ticketing, per transaction, and bank card charges are utilized with a vendor. If they’re keen to closely low cost the software program utilization, ask if the opposite bank card charges and transaction charges went as much as compensate. If a software program supplier can not present a straight reply, or if there may be quite a lot of variance relying on components reminiscent of donation quantity, expenses for the month, the software program plan you select, or extra — contemplate how vital transparency and ease of planning are to your group, board, and donors.
Will you pay extra to make use of software program assist? When is assist accessible?
Ask any potential suppliers what their assist hours are, who makes up their assist staff, and if entry to assist is an additional cost.
Will you pay a month-to-month service provider price?
Service provider charges are part of each fee processing contract, however are they handed onto a nonprofit as a separate invoice to think about, or are they conveniently rolled into the software program contract?
What options are included in your software program price?
Does a nonprofit should contract with a 3rd celebration or pay extra to make use of embeddable varieties, peer-to-peer fundraising, text-to-donate, auctions, or different options that GiveSmart contains?
Can donors cowl charges?
This contains industry-standard bank card charges, but additionally charges that others could cost, reminiscent of transaction charges and tipping.
What free assets can be found for coaching?
Does the software program firm supply coaching movies, guides, and how-to articles to assist customers perceive easy methods to customise their fundraising? Or, do you must pay much more to entry?
How steadily does the software program make updates?
If a platform is charging for software program, after which by no means fixes bugs or provides options that assist you to be extra environment friendly and lift extra, that platform might not be the correct match if you need your fundraising to develop.
If they’re a “free” platform and are extremely rare with updates, then you might be truly paying one thing.
There are rather a lot of choices in the case of fundraising and donor administration software program.
As your nonprofit examines expertise, ensure that to ask some essential questions on charges, safety, and updates, and be looking out for transparency within the solutions. Your group deserves a fully-featured, easy-to-navigate answer that helps you increase extra.
Take a look at GiveSmart’s Nonprofit Final Purchaser’s Information, as your group evaluates platforms to assist transfer your mission ahead.
