What to Know About Fees and Tips When Donating Online to a Good Cause

Online giving has made supporting charities faster and easier than ever, but it can also come with hidden costs. From processing fees to optional “tips,” the amount your chosen nonprofit receives may be less than you expect.

Fundraising platforms like GoFundMe or Givebutter often charge transaction or service fees. Most payment processors take about 2.9% of each donation plus 30 cents. Some sites ask donors to cover that cost, while others deduct it from the contribution itself. Either way, the money goes toward maintaining secure and convenient systems for charitable giving.

Some fundraising platforms also charge a small percentage as a platform fee, usually around 3%. Others waive those fees but request an optional “tip” — a payment to the platform company, not the charity, to help fund its services. These tips are not tax deductible and are sometimes prefilled at rates between 15% and 17%, though donors can adjust them down or even to zero.

Charity experts recommend transparency and caution when giving online. Laurie Styron of CharityWatch notes that donors should always understand how much of their money goes to the cause versus the platform. If a site’s fee structure isn’t clear, reach out to the nonprofit directly or donate through its own website to ensure more of your contribution reaches those in need.

As the holiday giving season approaches, including events like Giving Tuesday, small steps like checking for fees or adjusting tip sliders can help make every dollar count.

Credit: CNN Newsource

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