No Such Thing as a Free Lunch

Even in cases where the nonprofit does receive “all” of the donation, the donors can be asked to cover the transaction cost or to leave a “tip” that will offset those costs. In all of these cases, the nonprofit does not receive all of the money that the donor gave. These fees and costs can really add up over time. Nonprofits lose an average of 7% of donations to these fees, amounting to around $18 billion lost every year, which is about $18 billion more than you would expect for something free!

Hidden Fees in Online Giving

Credit Card Fees
Platform Fees
Technology Fees
Administrative Fees
Request for Donor to Cover the Cost of Transaction

This hidden cost is not so hidden for nonprofit leaders who know that lost money is lost opportunity. Platforms that ask donors to cover fees or request a tip, can make donors up to 14% less likely to donate again in the future. All of this means that as online donations grow in popularity, their fees represent a threat to the nonprofits that use them.

With NetGiver, donors and nonprofits never have to pay anything to send or receive donations. Credit unions, understanding the importance of charitable giving, completely subsidize any cost of donations, ensuring that all 501(c)(3) organizations can receive every dollar given to them by donors.

Nonprofit Impact

Approximately 2/3rds of nonprofit organizations have an operating budget of less than $1 million per year. This means that every dollar lost stretches their budget tighter and tighter. Larger organizations have the visibility, advertising budget, and reach to ensure donations consistently roll in. Smaller nonprofits need to get creative to ensure a steady stream of donations can support their charitable activities.

These smaller nonprofits rely more heavily on small donations from individuals than funding from corporations and foundations. Making online giving more accessible, and more importantly free, allows them to grow their reach and impact on their communities. This comes at a time when the demand for services from these smaller organizations is growing. 60% of nonprofits reported an increase in demand over the past year. 7% more money means 7% more people that can be helped.

In a time when nonprofit organizations are facing more problems than ever, NetGiver provides an opportunity to get the most out of the generosity of donors. There are many ways to increase the impact of this generosity. Enroll your nonprofit with NetGiver today to immediately give your donors the opportunity to donate completely fee free.

NetGiver is a completely free donation service built to do away with ALL credit card, platform and administrative fees for contributions to 501(c)(3) organizations. Credit unions believe organizations like yours deserve 100% donations, and we, as a credit union community, are getting behind this belief by financially supporting NetGiver.

Enroll your 501(c)(3) today at: https://app.netgiverapp.com