F€€$. It’s the four-letter phrase in fundraising software program.
Some suppliers make it look like a PhD is required in nonprofit expertise to type out what a nonprofit will actually be paying to lift crucial mission {dollars}. And, as everybody is aware of, there’s typically a excessive value to a different four-letter phrase, “free.”
So, what charges are commonplace and essential to have safe, working expertise and help when it’s wanted? And what charges are corporations utilizing to nickel and dime a company, making their “free” contract really too good to be true?
Educate your self on the sorts 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.
Kinds of Charges
Platform or Software program Subscription
Platform subscriptions cowl precise software program utilization.
Some suppliers cost for every function comparable to auctions and peer-to-peer fundraising, whereas others, like GiveSmart, embrace all fundraising options for one flat payment. Different corporations additionally could have a cost 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, help workers, how-to guides, common platform updates, service provider accounts, and compliance. Some corporations have advert hoc charges for a few of these mandatory issues.
Credit score Card Charges and PayPal/Venmo
Any cost processor, just like the service provider GiveSmart makes use of, prices bank card and digital cost (PayPal/Venmo) charges. These charges cowl what the bank card firm is charging the cost processor, safety encryption, expertise, and extra.
GiveSmart subsequently has a typical bank card payment 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 coated by donors utilizing GiveSmart, it’s a straightforward technique to maintain platform utilization prices for nonprofits decrease.
A few of our rivals add a per transaction payment on high of the bank card payment. Others differ the bank card payment relying on the quantity of donations or the quantity of a donation. Nonetheless others add on ticketing or different charges, too.
It might change into almost unattainable to estimate what internet income shall be utilizing a few of our rivals.
With GiveSmart, whether or not a company raises $1 or $1 million, their software program contract and bank card charges are mounted, and we don’t add on an increasing number of charges like some others do.
Characteristic Charges
GiveSmart presents all fundraising options with each contract. Curious to attempt a peer-to-peer marketing campaign? Go for it! Wish to provide donors the choice to offer by way of Apple Pay? These received’t require a contract addendum or further cost to make use of with GiveSmart.
Many different software program corporations both don’t provide many fundraising or cost options in-platform, require a third-party connection, and/or cost extra to make use of every function.
Service provider Charges
The cost processing service provider additionally prices month-to-month dues for each account, along with bank card charges. So, corporations like GiveSmart make a cost per nonprofit we help, 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 high-quality print of a contract, so nonprofits find yourself with an unwelcome shock.
Skilled Companies and Coaching Charges
Whereas GiveSmart presents strong, self-service coaching and is simple to make use of, some organizations with restricted assets select to work with our Companies Crew on web page setup, day-of-event help, and extra. It’s an non-compulsory service that many organizations discover useful, and our Companies Crew helps many nonprofits elevate extra.
Different platforms provide further companies, too, and prices can differ.
Help or Assist Desk Charges
GiveSmart’s help crew is staffed by precise folks, who can speak our clients by means of issues by way of chat or cellphone morning, midday, or night time, and on weekends, too.
Different software program corporations cost nonprofits for a sure variety of service credit, and when the crew makes use of them up, they’re both on their very own or should purchase extra. Most of these corporations 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 as a consequence of technical difficulties.
Texting Charges
Some software program corporations cost further for text-to-donate, both by including one other payment or by making nonprofits contract with a 3rd get together to allow texting.
GiveSmart consists of 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 trouble.
Ticketing Charges
If utilizing a ticketing function, that won’t even embrace visitor administration like GiveSmart does, some platforms cost one more payment. That is on high of a bank card payment and transaction payment, 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 lots of these cost for help and bank card charges, these software program corporations may additionally instill a tipping mannequin.
On this method, nonprofits ask their donors to tip to cowl the software program value. This can be along with asking donors to voluntarily cowl an industry-standard bank card payment. This tipping mannequin asks donors to pay a nonprofit’s payments, on high of donating. If a nonprofit chooses to not use a tipping mannequin, then the “free” platform could then cost a sliding scale platform payment.
“Free” platforms could require nonprofits to pay to use Apple Pay, host auctions, and extra.
Per-Transaction Charges
Some nonprofit software program corporations cost per-transaction charges. This implies, that on high of the bank card payment, donors pay extra each time they take a look at.
GiveSmart doesn’t cost per-transaction charges, ever, so internet 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, comparable to on-course video games, mulligans, or an early-bird raffle, donors are being requested to pay an additional bit each time.
Some platforms differ the per-transaction payment primarily based on the kind of donation. In some circumstances, folks pays extra throughout an public sale buy, let’s say, than an annual marketing campaign present.
Utilization Charges
Some software program corporations cost if nonprofits use the platform “an excessive amount of” or “too little/by no means” throughout sure timebound durations.
If a nonprofit has an distinctive month, they shouldn’t must pay extra as a result of they obtained extra donations.
Instruments comparable to embeddable donation kinds and recurring giving ought to yield giving each month. However, in the event that they don’t, a nonprofit shouldn’t must pay one more month-to-month payment 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 crew is cagey, think about determining what your internet income shall be should 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 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’s a substantial amount of variance relying on elements comparable to donation quantity, prices for the month, the software program plan you select, or extra — think about 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 crew, and if entry to help is an additional cost.
Will you pay a month-to-month service provider payment?
Service provider charges are part of each cost 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 payment?
Does a nonprofit must contract with a 3rd get together or pay extra to make use of embeddable kinds, peer-to-peer fundraising, text-to-donate, auctions, or different options that GiveSmart consists of?
Can donors cowl charges?
This consists of industry-standard bank card charges, but additionally charges that others could cost, comparable to transaction charges and tipping.
What free assets can be found for coaching?
Does the software program firm provide coaching movies, guides, and how-to articles to assist customers perceive the way to customise their fundraising? Or, do you need to pay much more to entry?
How ceaselessly 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 enable you be extra environment friendly and lift extra, that platform will not be the suitable match if you would like your fundraising to develop.
If they’re a “free” platform and are extremely rare with updates, then you might be really paying one thing.
There are so much of choices relating to fundraising and donor administration software program.
As your nonprofit examines expertise, ensure to ask some crucial questions on charges, safety, and updates, and be looking out for transparency within the solutions. Your group deserves a fully-featured, easy-to-navigate resolution that helps you elevate extra.
Take a look at GiveSmart’s Nonprofit Final Purchaser’s Information, as your group evaluates platforms to assist transfer your mission ahead.