Resources are finite so let’s get smart about your operational costs. We offer an AI-powered online donation form that not only boosts donations but also effectively eliminates transaction fees for many organizations. Yes, really! Here’s how it works.
How Fundraise Up becomes virtually free
At the heart of Fundraise Up's cost-savingsness is its AI-driven Adaptive Cost Coverage. This tool encourages donors to cover transaction fees (both our platform fee and payment processing fees from Stripe or PayPal).
The result? An astounding 87% of donors opt to cover all transaction costs. This leads to an average fee of less than 0.5% per donation for orgs using our online donation form.
Benefits for nonprofits and donors
For nonprofits:
- Cost savings: With most donors covering fees, organizations can allocate more funds directly to their mission.
- Increased revenue: Research shows a .25% jump in conversion rates and up to 3% increase in donation revenue when Adaptive Cost Coverage is enabled.
- Seamless integration: The feature can be easily toggled on without additional costs.
For donors:
- Tax deductibility: The entire donation amount, including covered fees, is tax-deductible for supporters.
- Transparency: Donors clearly understand how their additional contribution directly supports your mission.
Why does Adaptive Cost Coverage work so well?
This feature’s success isn't just about numbers; it's about understanding donor psychology and leveraging smart design. Our AI analyzes dozens of factors to determine the optimal moment to present the fee coverage option to donors. This strategy ensures that the request occurs when donors are most likely to say yes. This increases the chances of covering fees without hurting conversion rates.
A hypothesis proven: the success behind the science
RedRover - 68% of donors cover transaction costs
When we gave donors the ability to opt-in to cover transaction costs, we found that 55% of our donors chose to cover those costs – even large donors who were making significant contributions.
Today, data shows that 68% of our donors now cover the cost of transaction fees, resulting in additional revenue that we can put back into services. — Erin Bialecki, Director of Development and Communications
International Committee for the Red Cross Brazil - 91% of donors cover transaction costs
Spoken Gospel - 82% of donors covers transaction costs
Around 82% for fees covered. And that’s a lot of our donors! So it's just offloading the cost to the right group and they're [donors] helping us grow. In the process, we're able to fund our operations. — Eric Smith, Co-founder & COO
Stand Up To Cancer - 94% of donors cover transaction fees
More than just a cost-saving feature
Our AI-powered Adaptive Cost Coverage feature is more than just a cost-saving tool; it's a paradigm shift in how nonprofits can approach online fundraising. By effectively eliminating transaction fees, we help nonprofits focus more resources on their missions rather than operational costs.
For organizations looking to maximize their fundraising potential while minimizing costs, we offer a compelling solution that quite literally pays for itself. Win-win! For a personalized walk-through, book a call with our platform experts right here.