How to Cut Through the Buzz and Choose the Right Fundraising Partner
You’ve likely seen the ads or social media posts promising “free fundraising” or “no platform fees.” It’s an attention-grabbing message—and understandably so. When you’re working hard to reach fundraising goals, the idea of keeping 100% of what you raise sounds like a win.
But as many schools and organizations quickly discover, the word free often comes with fine print. And that fine print can directly impact both your net earnings and your donors’ experience.
This article isn’t about dismissing the appeal of “free.” We love free, too. Instead, it’s about helping you ask the right questions, understand how fundraising platforms really work, and ultimately choose a partner that delivers the best results for your organization and your supporters.
“Free” Is Rare—Except When It Comes to Engagement
Whether a fundraising company is for-profit or nonprofit, providing digital tools, payment processing, customer support, and marketing resources comes with real operational costs. Those costs are always covered somewhere—either by you, your donors, or a combination of both.
That said, one thing should always be free: engagement.
When evaluating a fundraising platform, you should expect:
- Free account creation
- No upfront setup fees
- No charges to launch or manage your campaign
If a platform charges you simply to get started—outside of standard payment processing tied to donations—that’s an early red flag. Your fundraising partner should remove barriers to participation, not add them.
Focus on What Matters Most: Net Earnings
Fees alone don’t tell the full story. What really matters is how much money your organization actually receives when the fundraising campaign ends.
Many modern fundraising platforms now offer donor-first fee structures that aim to maximize your net return, while covering the operational costs needed to grow. These often take one of two forms:
- Tip-based models, where donors are encouraged to leave a voluntary tip for the platform
- Fee-coverage options, where donors can choose to cover processing or service fees at checkout
When implemented transparently and thoughtfully, these approaches can significantly increase your net earnings.
Key questions to ask tip-based platforms:
- What tip percentage is pre-selected for donors? (Often 8–10%). Also, check out what the highest and lowest percentages are being presented to the donor.
- What is the platform’s average tip rate in real campaigns? What is the average conversion rate of donors who tip vs. donors who don't? You might be surprised!
- Can donors easily opt out of tipping—and is that option clear and user-friendly?
Key questions to ask fee-coverage platforms:
- Can donors choose whether or not to cover fees? Is there content that highlights to the donor the benefit of covering the fees?
- Example: Covering the fees allows our school to receive 100% of your pledge contribution.
- Are all fees clearly disclosed before checkout? Ask to see a typical donation transaction page to understand how fees are presented to the donor. Transparency is everything!
- Are there any hidden or post-transaction fees? Ask whether there are additional costs that the company might ask for. Make sure there are no hidden fees that might come to haunt you during or after your fundraiser closes.
Bottom line: For non-product, digital fundraising campaigns, you should reasonably expect 90–95% net earnings when the platform is structured with transparency and donor choice in mind.
Low Fees Are Important—But Support Matters Just as Much
It’s tempting to choose the platform with the lowest advertised fees, but cost savings can quickly disappear if you’re left without the tools or support needed to run a successful fundraiser.
A strong fundraising partner should do more than process donations. They should actively provide you with the tools and support services to help you succeed.
Ask potential partners:
- What support services are included?
- Campaign setup guidance
- Marketing tools (digital flyers, social graphics, email templates)
- Best-practice tips and fundraising playbooks
- How can we reach your support team?
- Email, chat, or phone support
- What are your average response times for customer and donor inquiries?
The right balance is key: strong support services paired with high net earnings. A platform that helps you promote, manage, and optimize your fundraiser can often deliver far more value than one that simply claims to be “free.”
The Takeaway: Choose Transparency Over Buzz
“Free” can be a powerful marketing message—but transparency, flexibility, and results are what truly matter.
When evaluating fundraising platforms, look beyond the headline claims and focus on:
- How engagement is handled
- How fees are disclosed and covered
- What your true net earnings will be
- How well the platform supports you and your donors
By asking the right questions upfront, you’ll be better equipped to choose a fundraising partner that aligns with your goals, respects your donors, and helps you raise more—without surprises along the way.
