F€€$. It’s the four-letter phrase in fundraising software program.
Some suppliers make it look like a PhD is required in nonprofit know-how to kind out what a nonprofit will actually be paying to boost important mission {dollars}. And, as everybody is aware of, there’s usually a excessive price to a different four-letter phrase, “free.”
So, what charges are customary and essential to have safe, working know-how and help when it’s wanted? And what charges are firms utilizing to nickel and dime a company, making their “free” contract truly too good to be true?
Educate your self on the varieties of charges which might be a part of fundraising software program and you’ll then maintain the different four-letter phrases out of the method.
Varieties of Charges
Platform or Software program Subscription
Platform subscriptions cowl precise software program utilization.
Some suppliers cost for every function equivalent to auctions and peer-to-peer fundraising, whereas others, like GiveSmart, embody all fundraising options for one flat charge. 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 security, help workers, how-to guides, common platform updates, service provider accounts, and compliance. Some firms have advert hoc charges for a few of these crucial issues.
Credit score Card Charges and PayPal/Venmo
Any fee processor, just like the service provider GiveSmart makes use of, prices bank card and digital fee (PayPal/Venmo) charges. These charges cowl what the bank card firm is charging the fee processor, safety encryption, know-how, and extra.
GiveSmart subsequently has a normal bank card charge of three.5% (3.95% for American Categorical), which is identical 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 straightforward option to maintain platform utilization prices for nonprofits decrease.
A few of our opponents add a per transaction charge on prime of the bank card charge. Others range the bank card charge relying on the amount of donations or the quantity of a donation. Nonetheless others add on ticketing or different charges, too.
It may well change into practically unattainable to estimate what web income will likely be utilizing a few of our opponents.
With GiveSmart, whether or not a company raises $1 or $1 million, their software program contract and bank card charges are fastened, and we don’t add on more and more fees like some others do.
Characteristic Charges
GiveSmart presents all fundraising options with each contract. Curious to strive a peer-to-peer marketing campaign? Go for it! Wish to provide donors the choice to provide through Apple Pay? These received’t require a contract addendum or further fee to make use of with GiveSmart.
Many different software program firms both don’t provide many fundraising or fee options in-platform, require a third-party connection, and/or cost extra to make use of every function.
Service provider Charges
The fee processing service provider additionally prices month-to-month dues for each account, along with bank card charges. So, firms like GiveSmart make a fee per nonprofit we help, however we account for that inside our software program subscription worth.
Most of our opponents cost individually for service provider charges. And, some platforms bury that cost within the tremendous print of a contract, so nonprofits find yourself with an unwelcome shock.
Skilled Providers and Coaching Charges
Whereas GiveSmart presents sturdy, self-service coaching and is straightforward to make use of, some organizations with restricted sources select to work with our Providers Group on web page setup, day-of-event help, and extra. It’s an non-compulsory service that many organizations discover helpful, and our Providers Group helps many nonprofits elevate extra.
Different platforms provide further providers, too, and prices can range.
Assist or Assist Desk Charges
GiveSmart’s help workforce is staffed by precise individuals, who can discuss our clients by way of issues through 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 workforce makes use of them up, they’re both on their very own or should purchase extra. Most of these firms don’t provide help within the evenings or weekends, so if one thing comes up throughout an occasion, a nonprofit could miss out on donations because of technical difficulties.
Texting Charges
Some software program firms cost additional for text-to-donate, both by including one other charge or by making nonprofits contract with a 3rd social gathering 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 elevate extra, with out the pointless problem.
Ticketing Charges
If utilizing a ticketing function, that will not even embody guest management like GiveSmart does, some platforms cost one more charge. That is on prime of a bank card charge and transaction charge, which means gala tickets or golf foursomes could carry three surcharges.
GiveSmart doesn’t cost ticketing charges, so you may promote out your subsequent occasion with out the fear!
Tipping
Some platforms declare to be “free” to nonprofits. Whereas a lot of these cost for help and bank card charges, these software program firms may 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 charge. 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 charge.
“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 charge, donors pay extra each time they try.
GiveSmart doesn’t cost per-transaction charges, ever, so web income doesn’t change relying on what number of and what kind of donations are given. Whereas it appears nominal, if a nonprofit has a number of alternatives for checkout, equivalent to on-course video games, mulligans, or an early-bird raffle, donors are being requested to pay an additional bit each time.
Some platforms range the per-transaction charge primarily based on the kind of donation. In some circumstances, 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 intervals.
If a nonprofit has an distinctive month, they shouldn’t need to pay extra as a result of they obtained extra donations.
Instruments equivalent to embeddable donation varieties and recurring giving ought to yield giving each month. However, in the event that they don’t, a nonprofit shouldn’t need to pay one more month-to-month charge 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 finest consider choices. If the gross sales workforce is cagey, take into account determining what your web income will likely be in the event you tack on further 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 prepared 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’s quite a lot of variance relying on elements equivalent to donation quantity, prices for the month, the software program plan you select, or extra — take into account how necessary transparency and ease of planning are to your group, board, and donors.
Will you pay extra to make use of software program help? When is help accessible?
Ask any potential suppliers what their help hours are, who makes up their help workforce, and if entry to help is an additional cost.
Will you pay a month-to-month service provider charge?
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 charge?
Does a nonprofit need to contract with a 3rd social gathering 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, equivalent to transaction charges and tipping.
What free sources can be found for coaching?
Does the software program firm provide coaching movies, guides, and how-to articles to assist customers perceive find out how 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 provide help to be extra environment friendly and lift extra, that platform will not be the best match if you need your fundraising to develop.
If they’re a “free” platform and are extremely rare with updates, then you’re truly paying one thing.
There are quite a bit of choices on the subject of fundraising and donor administration software program.
As your nonprofit examines know-how, make sure that to ask some important 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 elevate extra.
Take a look at GiveSmart’s Nonprofit Ultimate Buyer’s Guide, as your group evaluates platforms to assist transfer your mission ahead.