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How is Zeffy free?
How is Zeffy free?
Zeffy relies entirely on optional contributions from donors. At the payment confirmation step - we ask donors to leave an optional contribution to Zeffy.
While platform fees - typically ranging from 2% to 5% - are a standard part of digital fundraising, they represent a significant portion of resources that could be directed toward your mission instead.
Most crowdfunding platforms charge platform fees, transaction fees, and feature-based costs to cover their operations. Understanding these fee structures and their impact on your crowdfunding campaign is crucial for making informed decisions about which platform best serves your organization's needs.
Let’s understand the true costs of fundraising platforms, break down different fee models, and show how your organization can avoid these fees entirely.
Fundraising platforms justify their fees by pointing to three main operational costs:
Processing/transaction fees: Standard 2.9% + $0.30 charged by payment processors like Stripe for each donation
Platform fees: An additional 2-10% is charged by platforms to maintain their software and services
Monthly/subscription fees: Fixed charges for accessing platform features
Contact-based fees: Platforms often charge based on the number of contacts in your donor database, with prices increasing as your donor list grows
This means a single $100 donation could cost your nonprofit $5-10 in total fees. For example, if a platform charges both 2.9% for processing and 3% for platform fees, that's nearly 6% lost from each gift.
While these costs have traditionally been considered unavoidable, innovative solutions like donor-supported platforms, such as Zeffy, prove that free fundraising technology is possible without compromising features or reliability.
5 types of fees commonly charged by fundraising platforms
1. Transaction fees (aka processing or credit card fees)
With over 60% of donors now preferring online donations, reliable payment processing is crucial. Every donation through a credit card or digital wallet incurs transaction fees from payment processors like Stripe - typically 2.9% + $0.30 per transaction.
Most platforms advertise as 'free' but exclude payment processing fees charged by third-party services like Stripe (2.9% + $0.30 per transaction). These unavoidable hidden charges are passed on to nonprofits as separate costs. For example, a $100 donation typically costs $3.20 in processing fees alone, directly reducing funds available for your mission.
Even platforms like GoFundMe, which claim to have no platform fees, still charge for payment processing on every donation.
While GoFundMe offers donors the option to cover these fees, they still deduct 2.2% + $0.30 from each donation to the nonprofit regardless. This means that even when donors opt to cover fees, nonprofits don't receive the full donation amount - a $100 gift still results in only $97.50 reaching the organization.
Unlike other platforms, Zeffy covers all payment processing fees that Stripe charges, ensuring nonprofits receive 100% of every donation. While donors can contribute to support Zeffy's operations, they are never obliged to.
Platform fees (typically 2-5%) cover the costs for core technology and infrastructure that powers the fundraising platform.
Platforms charge these fees to maintain and improve their software, provide technical support, and develop new features for nonprofits.
Donorbox applies a 1.75% platform fee on their standard plan, while premium tiers (priced at $139/month or higher) have a 1.5% platform fee. Some specialized features carry a 2 - 2.95% platform fee. Each plan also includes payment processing charges of 2.2% + 30¢ for Stripe and 1.99% + 49¢ for PayPal per transaction.
Zeffy operates without platform fees, allowing nonprofits to direct more resources to their core mission work.
Platforms like Donorbox and Qgiv charge monthly/annual subscriptions and/or initial setup fees on top of transaction fees.
These fixed fees typically provide access to premium features like advanced donor management tools, custom branding, or API access.
Qgiv requires a $25 monthly subscription to access basic features, with higher tiers running $159-259 monthly. Additional transaction fees of 1.95 - 3.95% apply to each donation.
Platforms like Donorbox charge additional monthly fees for each third-party integration: $50/month for Salesforce, $50/month for HubSpot, $65/month for Blackbaud Raiser's Edge NXT, and $8/month for Mailchimp. These per-integration costs add up significantly when using multiple tools.
When it's time to transfer funds to your bank account, platforms may charge additional fees. These include costs for expedited transfers ($15-25), international wire transfers, or multiple monthly payouts. Some platforms also charge for failed transfers or account verification processes.
Funraise uses Stripe for processing but adds extra costs for payouts. Beyond standard transaction fees, they charge 3% for instant payouts and 1.5% for international transfers.
Many platforms charge based on your donor database size or limit contacts in basic plans for your donor management system. Premium tiers often require upgrades for larger donor lists or advanced segmentation features.
DonorPerfect offers add-ons based on the number of records you want to access. For the screening of 5,000 records, the platform charges $1,250.
3 key factors influencing the cost of fundraising platforms
1. Platform features and offerings
Most fundraising sites provide basic features like donation forms, payment processing, receipt generation, and premium analytics capabilities. Donor management systems also help organizations track giving patterns and strengthen valuable donor relationships.
Organizations should prioritize features that match their specific campaign goals and donor base needs.
Larger nonprofits may benefit from advanced donor tracking and event management capabilities, while smaller organizations might only need basic donation processing.
Zeffy provides comprehensive features, including customizable forms, donor management, and event ticketing - all without tiered pricing or feature restrictions - and it’s 100% free.
2. Scale and scope of fundraising
Organizations running successful campaigns can negotiate better rates based on their donation volumes.
For long-term fundraising efforts, subscription models are often more cost-effective, as they reduce campaign fees over time. Short-term fundraisers, on the other hand, may benefit from percentage-based fees, paying only when donations are made and avoiding the complexity of monthly subscriptions.
3. Integration capabilities with other tools and services
Modern fundraising platforms offer basic integrations with common CRM systems, accounting software, and email marketing tools, though many charge additional fees for these connections.
Before choosing a platform, carefully evaluate which integrations are essential for your operations and compare both capabilities and costs. Some free platforms offer robust integrations without extra charges, while others require costly third-party solutions.
How to budget for a fundraising platform
1. Evaluate your fundraising volume
Start by analyzing your expected monthly and annual donation volumes. This helps determine whether percentage-based fees or subscription models will be more cost-effective for your organization.
Consider both regular donations and seasonal fundraising peaks when calculating potential platform costs.
Look beyond the advertised platform fee to understand the complete cost structure. Include transaction fees, integration costs, and any premium features your organization needs.
Factor in potential growth - as your donation volume increases, some platforms offer reduced rates while others may introduce new fees.
3. Consider long-term value
While free or low-cost platforms might seem attractive initially, evaluate their long-term impact on your fundraising efficiency.
Investing in a platform with robust donor management tools and automation features could save significant staff time and resources. However, avoid paying for advanced features that don't directly support your fundraising goals.
4. Assess platform scalability
Choose a platform that can grow with your organization without introducing excessive new costs.
Some platforms require upgrades to premium plans as you grow, while others maintain consistent pricing regardless of size. Consider whether the platform's pricing structure aligns with your organization's growth trajectory.
100% free crowdfunding platform: Zeffy
Zeffy stands out as North America's only 100% free fundraising platform that covers all the fees for nonprofits. Unlike other platforms that claim to be free but charge processing fees, Zeffy completely eliminates both platform and transaction fees.
Our operations run through voluntary donor contributions; donors can add them during their transactions without any obligation.
Fee comparison of crowdfunding platforms
Let's examine how crowdfunding platforms in the US compare in terms of fees and features. This comparison will help you understand why organizations choose Zeffy for fundraising needs:
Case study: How #YesSheCanCampaign raised $3,328 using Zeffy
#YesSheCan, a youth education nonprofit, helps prepare students for college success. They were losing donations to GoFundMe's platform fees while struggling to manage donor tax receipts effectively.
By switching to Zeffy's 100% free online donation platform with automated tax receipt generation and secure donor management, they've raised over $3,000 to date without paying any fees. Zeffy’s tools helped them focus on their core mission of preparing young people for college through education resources and training.
Nonprofits can maximize their fundraising impact and simplify donor management with Zeffy's 100% free fundraising tools.
Choosing the right crowdfunding platform impacts every dollar you raise. Examine each platform's fee structure, including credit card processing, monthly minimums, and international transaction charges.
Modern platforms have moved beyond charging donors at every step, with some now covering all processing costs through optional donor contributions.
Zeffy’s 100% free fundraising platform leads this transformation by offering comprehensive tools for nonprofits - ensuring you direct all your donations toward your cause.
Most crowdfunding platforms charge between 3%-10% of your total donations. Payment processing fees typically add another three percent plus a small fixed amount. Some fundraising platforms include additional charges for premium features and support services.
Many platforms structure their fees differently based on campaign types and fundraising goals. Take into account both platform fees and transaction costs when choosing your fundraising site.
Free fundraising platforms like Zeffy help organizations keep 100% of their donations without charging any platform or processing fees.
Most other platforms combine platform fees with payment processing charges for each transaction. Some sites offer reduced rates for nonprofit organizations running regular fundraising events.
Consider platforms that provide essential fundraising tools without charging monthly subscription fees. Always check for hidden costs before starting your fundraising campaign.
Most crowdfunding platforms generate income through a combination of platform and transaction fees. Some sites rely on monthly subscription fees for access to fundraising tools, while others offer premium features and donor management tools at additional costs.
Some crowdfunding sites use a voluntary tip model, where donors contribute a percentage of their donation to support the platform. Free platforms might receive support through partnerships or other donations.
Start by calculating your expected monthly donation volume to understand potential platform fees. Consider both immediate costs like transaction fees and long-term expenses for essential tools.
Many fundraising platforms offer different pricing tiers based on your organization's size. Free platforms help maximize impact by eliminating standard fees and processing charges. Remember to account for any additional costs like premium features or integration tools.
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