How "free" platforms and fee platforms actually differ
Every platform's costs land on someone. There are only three places money can go: the organization pays, the donor pays, or the platform absorbs it.
- Tip-model platforms (Zeffy; Givebutter with tips on). The organization pays 0% and keeps 100% of every donation. The platform funds itself by asking your donors for an optional tip at checkout — on top of the gift, never out of it. Zeffy says about 2 of 3 donors tip; the suggested amount is dynamic and your org can't change the prompt.
- Fee platforms (Donorbox; Givebutter with tips off). The organization pays a platform fee plus card processing — roughly $5.45 per $100 card donation on Donorbox Standard — unless donors tick "cover fees" at checkout, which shifts the cost to them transparently.
- Deduct-from-donation (GoFundMe, PayPal direct). No platform fee, but processing (2.2% + $0.30 charity rate on GoFundMe; 1.99% + $0.49 on PayPal) comes out of the donation before it reaches you.
That's why "which is cheapest?" has no universal answer — it depends on your volume, average gift size, payment mix, and how your donors respond to tip and fee-cover prompts. Hence the calculator above.
Deep dives
- Zeffy vs Givebutter fees — the two "free" platforms, compared honestly
- Zeffy vs Donorbox fees — free-with-tips vs pay-per-transaction
- Givebutter vs Donorbox fees — tips model vs classic fees
- How much does Donorbox take from a donation?
- Is Zeffy really free? — how the donor-tip model works
Frequently asked questions
Which donation platform has the lowest fees for nonprofits?
It depends on who you want to pay them. On tip-model platforms (Zeffy, Givebutter with tips enabled) the nonprofit keeps 100% of every donation and the platform asks donors for an optional tip on top. On fee platforms, a $100 US card donation costs about $5.45 on Donorbox Standard (2.95% platform + 2.2% + $0.30 processing), $2.50 on GoFundMe's certified-charity rate (2.2% + $0.30), and $2.48 on a direct PayPal charity button (1.99% + $0.49) — unless donors cover fees at checkout. Enter your own volume and average gift in the calculator for a ranked answer.
Is Zeffy really free for nonprofits?
Yes — for the nonprofit. Zeffy charges no platform or processing fees and states that 100% of payments go to the organization. It is funded by an optional contribution donors are asked to add at checkout; Zeffy says about 2 of 3 donors leave one. The suggested amount is dynamic and the nonprofit cannot customize the prompt. Full explainer.
How much does Donorbox take from a donation?
On the free Standard plan, Donorbox charges a 2.95% platform fee plus Stripe nonprofit processing of 2.2% + $0.30 per US card donation — about $5.45 of a $100 card gift, so you keep $94.55. Donors can be asked to cover all fees at checkout, in which case you receive the full $100. The Pro plan ($150/month) lowers the platform fee to 1.75%. Worked examples.
What is the donor-tip model and does it cost my nonprofit anything?
On tip-model platforms (Zeffy, Givebutter by default, and GoFundMe's tip prompt), donors are asked to add an optional amount on top of their donation to fund the platform. The tip never reduces what the nonprofit receives — it changes what the donor pays. The trade-off is donor experience: your supporters see a tip prompt at checkout that your organization does not control.
Do these numbers account for donors covering fees?
Yes. Where a platform offers donor-covers-fees (Donorbox does; Givebutter handles it through its tips system), the calculator has a slider for the share of donors you expect to cover fees, and shifts that share of the cost from your organization to the donor. Givebutter publishes that 92% of donors cover fees when asked; the calculator defaults to a more conservative 60%.