During checkout, you can present supporters with the option to cover transaction costs. When a supporter elects to cover transaction costs, they donate an additional amount that covers the Fundraise Up and either Stripe or PayPal transaction fees.
Cost coverage modes
There are five cost covering modes that can be configured—they are described below.
- Adaptive cost coverage: This fee covering mode uses AI to determine when a supporter should be prompted to cover transaction costs. By using AI to learn about supporters who are most likely to cover transaction costs, this approach optimizes around conversion.
While the goal of some other fee covering modes is to maximize cost coverage, the objective of adaptive cost coverage is to increase revenue output, even if fewer supporters ultimately cover transaction costs.
Adaptive cost coverage is our recommended fee covering mode, and it is enabled by default.From the blog: The Science Behind Adaptive Cost Coverage
- Show and preselect the option to cover costs: The option to cover transaction costs is displayed to a supporter and is selected by default. If you do not use adaptive cost coverage, this fee covering mode is recommended. When the option to cover costs is preselected, a majority of donors will opt to cover transaction costs.
- Show the option to cover costs: When this mode is enabled, a supporter is shown the option to cover transaction costs, but it is not preselected.
- Require that donors cover costs: When this mode is enabled, a supporter’s total donation amount will include the additional amount required to cover the donation’s transaction fees.
- Hide the option to cover costs: When this mode is enabled, donors are not shown the option to cover transaction costs. The net donation amount that your organization receives is the supporter’s donation amount minus the fees assessed by Stripe and Fundraise Up. We do not recommend using this setting for typical implementations.
The tax deductibility of a supporter’s donation extends to the transaction fees covered by the supporter. This is because the supporter is simply increasing the amount of their donation. It is as if the supporter is making a second “cost of business” donation. The supporter’s donation receipt reflects the total donation amount, including the fees they covered.
For accounting purposes, you may want to track the fees assessed on donations, even if they are covered by supporters. To accomplish this, you can use the Exports feature to create a report that includes fee amounts, or sync the fee information to a connected app using Fundraise Up’s built-in integrations.
Below are the available fields and properties related to cost coverage.
|Exports fields||Integration properties|
|Converted Donation Amount Before Fees Covered Option ([account currency])||Converted amount ([account currency]) before fees covered|
|Donation Amount Before Fees Covered||Amount before fees covered|
|Converted Payment Processing Fee ([account currency])||converted payment processing fee ([account currency])|
|Payment Processing Fee||payment processing fee|
|Payment Processing Fee Currency||payment processing fee currency|
|Converted Platform Fee ([account currency])||converted platform fee [account currency]|
|Donation Platform Fee||platform fee|
|Donation Platform Fee Currency||platform fee currency|
|Refunded Platform Fee||refunded platform fee|
|Supporter Covered Fee||supporter covered fee|