Value of Donor-Covered Fees

Understanding the value of donor-covered processing fees

Is there value in asking donors to cover fees when they're in the donation process?

Our team specializes in maximizing conversion rates across every donation experience. When the option to add checkboxes to allow donors to cover fees became a trend, we tested into this with caution.

Not wanting to cause a barrier to conversion, we closely monitored conversion rates as well as any added revenue from the initiative.

What we found: at a certain volume, this option can become the equivalent of a 13th month of fundraising revenue for organizations.

Conversion rates are not impacted with the additional option to cover fees

Across numerous clients where we’ve added this option for donors, conversion rates did not see a dip in performance. With our conversion rate optimization of each form, we still see conversion rates between 30-40% of most forms.

More than half of donors choose to cover fees for organizations

One of our clients has seen nearly $70,000 in new, unrealized revenue through the addition of allowing donors to cover processing fees. This revenue outperforms most of their non-seasonal months prior to becoming a givingMD client!

It’s important to test into the format and the verbiage used when deploying this tactic, but we do recommend all organizations consider it.

The reality is that when COVID hit and everything began to be ordered online – tickets, food, etc – the acceptance of paying convenience fees became the norm.

If they can cover the fees and allow their full donation to go further to impact your cause, it is a win-win for everyone.

givingMD is here to help

Considering adding this option to your donation forms? Looking for expertise in this area?

Our team is ready to help you uncover a new revenue stream. Contact us today and we’ll talk with you about your needs and your vision for your digital fundraising efforts.