What a $100 Year-End Gift Actually Nets
For most small nonprofits running a December appeal, a tip-funded platform such as Zeffy or Givebutter with tips on keeps the full $100 of each gift. If your board objects to asking donors for a tip, the next cheapest choices are GoFundMe for certified nonprofits at 2.2% + $0.30 and PayPal at its approved charity rate of 1.99% + $0.49. The option that quietly costs the most is Givebutter with tips switched off, which takes $6.20 from every $100 gift as of October 2026.
Those gaps look small on one gift and large on a campaign. Across 200 gifts, the difference between the cheapest and most expensive setups here is $1,240. That is real money for an organization whose whole marketing budget might be a few hundred dollars a month.
Two Ways Donation Platforms Get Paid
- ● Tip models charge the donor
- ● Fee models charge the nonprofit
- ● Fixed fees punish small gifts
Every donation tool has to cover card processing and make a profit somewhere. There are only two places it can take that money from: the donor or the nonprofit.
Tip models charge the donor. Zeffy states on its pricing page that it charges no platform fee and covers credit card and transaction fees itself. It relies entirely on optional contributions that donors add at checkout, and it reports that on average 2 of 3 donors leave one. Givebutter works the same way by default, listing a 0% platform fee and 0% processing fee for the nonprofit when tips are enabled.
Fee models charge the nonprofit. GoFundMe, PayPal and Stripe deduct a percentage plus a fixed amount from each gift before it reaches you. The donor pays exactly what they typed, and you receive slightly less.
Neither model is free in a wider sense. With tips, the donor pays a little more than the gift. With fees, the cause receives a little less. The right choice depends on which trade your donors and board will accept.
Fee Schedules Side by Side
The table below lists the published rates for a US nonprofit as of October 2026. Confirm current pricing on the official site before you build your campaign, because these schedules change.
| Platform | Platform fee | Processing fee | Who absorbs it | Net from a $100 gift |
|---|---|---|---|---|
| Zeffy | $0 | Covered by Zeffy | Donor, via optional tip | $100.00 |
| Givebutter (tips on) | 0% | 0% for the nonprofit | Donor, via optional tip | $100.00 |
| Givebutter (tips off) | 3% | 2.9% + 30 cents card | Nonprofit | $93.80 |
| GoFundMe (certified nonprofit) | $0 | 2.2% + $0.30 | Nonprofit | $97.50 |
| PayPal (approved charity rate) | None listed | 1.99% + $0.49 | Nonprofit | $97.52 |
| PayPal (standard checkout) | None listed | 3.49% + $0.49 | Nonprofit | $96.02 |
| Stripe (direct card integration) | None listed | 2.9% + 30 cents | Nonprofit | $96.80 |
Two notes on the table. GoFundMe says its individual and business fundraisers pay 2.9% + $0.30, so the lower rate applies only to certified charity fundraisers. PayPal says its charity rate is subject to eligibility, application and pre-approval, so assume the standard rate until approval arrives.
Givebutter also sells a Plus plan starting at $29 per month, billed annually at $348. Its pricing page says Plus carries the same tip, platform fee and processing options as the free plan. You would buy it for features, not lower fees.
A December Appeal Worked Through
- ● 200 gifts of $100 each
- ● Fees range from $0 to $1,240
- ● Rates matter more than features
Take a small food pantry planning a Giving Tuesday push followed by a December letter. Assume it collects 200 online gifts averaging $100, for $20,000 in total. Assume every gift is paid by card and no donor chooses to cover fees.
Here is what each setup costs on that campaign, using the published rates above:
| Setup | Fee per $100 gift | Total fees on 200 gifts | Pantry keeps |
|---|---|---|---|
| Zeffy | $0.00 | $0 | $20,000 |
| Givebutter, tips on | $0.00 | $0 | $20,000 |
| PayPal charity rate | $2.48 | $496 | $19,504 |
| GoFundMe nonprofit | $2.50 | $500 | $19,500 |
| Stripe card | $3.20 | $640 | $19,360 |
| PayPal standard | $3.98 | $796 | $19,204 |
| Givebutter, tips off | $6.20 | $1,240 | $18,760 |
The arithmetic for the most expensive row is 3% of $100, plus 2.9% of $100, plus $0.30. That gives $6.20 per gift, or $1,240 across 200 gifts. The PayPal charity row is 1.99% of $100 plus $0.49, which is $2.48 per gift.
The example shows that rate selection matters more than features for a small appeal. Choosing the wrong setting on the right platform costs more than picking a different platform entirely.
Small Gifts Feel the Fixed Fee Most
Many year-end appeals bring in a long tail of $25 and $50 gifts. Here the fixed part of the fee does far more damage than the percentage.
On a $25 gift, PayPal at the charity rate takes about $0.99, or 3.95%. Stripe takes about $1.03, or 4.1%. GoFundMe for certified nonprofits takes $0.85, or 3.4%. On a $500 gift, the same three take about 2.09%, 2.96% and 2.26%.
Notice that PayPal flips from cheapest to more expensive as gifts shrink. Its $0.49 fixed fee is higher than the $0.30 charged by GoFundMe and Stripe. If your donor base gives mostly small amounts, compare the fixed fee before the percentage.
What the Tip Model Asks of Your Donors
A zero-fee headline does not mean nobody pays. Zeffy and Givebutter ask each donor to add a contribution to the platform during checkout. That request is the price of keeping your full gift.
Some boards dislike this. They worry that a donor will see a pre-filled tip, feel misled, and give less next year. Others are comfortable, reasoning that donors already understand that services have costs.
Before you choose, open the donor checkout as a donor would. Check how the contribution is worded, whether an amount is pre-selected, and how easy it is to set it to zero. If the flow feels pushy to your team, it will feel pushy to a lapsed donor too.
Givebutter also notes that donors can choose to cover processing fees, and that its guarantee covers any they do not. That keeps the nonprofit whole even when a donor declines.
Monthly Donors and Bank Payments
Recurring gifts are where processing costs compound, because the same fee repeats every month. A $100 monthly donor paying by card through Stripe costs $3.20 each time, or $38.40 a year.
Bank payments can cut that sharply. Stripe lists ACH Direct Debit at 0.8% with a $5.00 cap, so the same $100 gift costs $0.80. A $1,000 gift hits the cap and costs $5.00 rather than $29.30 by card.
Givebutter lists ACH at 1.9% + 30 cents when tips are off, which is cheaper than its card rate but still above Stripe. Bank debit settles more slowly than cards, so it suits steady monthly donors better than last-minute December gifts.
The same logic applies to any business taking payments. Our guide on whether to let clients pay invoices by card walks through the card versus bank trade-off in more detail.
Which Donation Setup Fits Your Organization
- ● Match the platform to gift size
- ● Apply for charity rates early
- ● Preview the donor checkout
Your gift sizes, your board and your existing tools decide this more than any feature list. Start with the situation closest to yours.
- Small gifts, tight budget: Choose Zeffy or Givebutter with tips on. When most gifts are $25 to $50, the fixed fee on every other option takes 3% to 4% of each one.
- Board refuses donor tips: Use GoFundMe as a certified nonprofit or apply for the PayPal charity rate. Both cost about $2.50 on a $100 gift, and neither asks donors for anything extra.
- Already taking payments on your website: A direct Stripe integration at 2.9% + 30 cents keeps donors on your own page. Add ACH for monthly donors to bring their cost down to 0.8%.
- Mostly large gifts from known supporters: Fees matter less in percentage terms, so pick the tool that best fits your donor records. On a $500 gift the fee-based options all land between about 2% and 3%.
- Already on Givebutter with tips off: Turn tips back on or revisit the decision. That one setting is the difference between keeping $100 and keeping $93.80 per gift.
Connecting Donations to Your Email List
A donation platform collects money, but it rarely runs your appeal emails well. Most small nonprofits pair it with a separate email tool that sends the Giving Tuesday reminder, the December letter and the thank-you sequence.
Check that the platform can pass new donors to your email list automatically. A monthly CSV export works, but donors who wait weeks for a thank-you note are less likely to give again. Our comparison of the best email marketing service for small nonprofits covers which senders offer nonprofit discounts and simple donation integrations.
If you collect gifts through a general form tool rather than a dedicated platform, our roundup of online form builders shows which ones accept payments. Expect to pay standard processor fees on top of the form subscription.
Before the Giving Tuesday Rush
Most of the fee decisions above take a few minutes to make and weeks to fix later. Apply for the PayPal charity rate or GoFundMe certification now, since both depend on a review you cannot rush in late November.
Then run one test gift of $5 through your chosen setup and compare the amount received with the published rate. If the number matches, you are ready. If it does not, you have found the problem before 200 donors do.
FAQ
Which donation platform takes the smallest cut from each gift?
Zeffy says it charges no platform fee and covers card processing, so a $100 gift arrives as $100. Givebutter also charges 0% when tips are switched on. Both rely on optional donor contributions at checkout, so the cost moves to the donor rather than disappearing. Confirm current terms on each official pricing page.
How much does Givebutter charge if we turn off donor tips?
As of October 2026, Givebutter lists a flat 3% platform fee when tips are disabled, plus card processing of 2.9% + 30 cents. On a $100 gift that totals $6.20, which is more than any other option compared here. Leaving tips on removes both charges for the nonprofit.
Does PayPal give nonprofits a lower fee?
Yes, but only after approval. PayPal lists a charity rate of 1.99% plus a 49 cent fixed fee for confirmed 501(c)(3) organizations, against 3.49% plus 49 cents on standard checkout. The reduced rate requires an application and pre-approval by PayPal, so apply well before a year-end appeal.
Why do small donations lose a bigger percentage to fees?
Because most fees combine a percentage with a fixed charge per transaction. The fixed part, such as 30 or 49 cents, is a much larger share of a $25 gift than of a $500 gift. A $25 gift through PayPal at the charity rate loses about 3.95%, while a $500 gift loses about 2.09%.
Do optional tips on donation forms annoy donors?
It can. A tip prompt adds a decision at checkout, and some donors find it confusing or feel pressured. Zeffy reports that on average 2 of 3 donors leave a contribution, which suggests most donors accept it. Preview the donor checkout yourself and read how the tip default is worded before you launch.
Sources
- Zeffy: Pricing — checked 2026-10-08
- Givebutter: Pricing — checked 2026-10-08
- GoFundMe: Pricing and Fees — checked 2026-10-08
- PayPal: Merchant Fees — checked 2026-10-08
- Stripe: Pricing — checked 2026-10-08
Some links may be affiliate links. We may earn a commission at no extra cost to you.
How this article was made: it was drafted with AI assistance from the official sources listed above, and its figures were checked against those pages on the dates shown. It is not based on personal hands-on testing.
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