Smart fee coverage

Updated AI model for Adaptive Cost Coverage increased ARPU by 0.43% without hurting conversion.

What we tested

During Checkout, donors are given the option to cover transaction fees. Fundraise Up’s AI helps determine the best moment to show this ask to maximize revenue without hurting conversion.

As part of our ongoing optimization efforts, we ran our fourth test of the fee coverage model in 2024, this time comparing two new AI models against the current version in Checkout Modal.

Hypothesis

If the new AI model personalizes the fee coverage option more effectively, average revenue per user (ARPU) will increase without reducing cost coverage conversion.

Test setup

Duration	20 days
Timing	October-November 2024
Audience	133,500 visitors
Group split	• 33% control (current model) • 33% test (new model – version 1) • 33% test (new model – version 2)
Key metrics	• Average revenue per user (ARPU) • Donation conversion • Cost coverage conversion

Key results

We analyzed the results both at the payment methods screen, a deep-funnel step reached by a subset of donors, and across all visitors for a full picture of impact.

+4.76% ARPU lift from model version 1 on the payment screen
+6.96% ARPU lift from model version 2 on the payment screen
→ Translates to a +0.43% ARPU increase overall
Recurring donation conversion increased across both models
No significant drop in cost coverage conversion

The result is statistically significant with a p-value < 0.001, meaning we can be more than 99.9% confident the improvement wasn’t due to chance.

4.76%

ARPU lift from model version 1

6.96%

ARPU lift from model version 2

Segment insights

By country

+9.6% (test version 2) and +6% (test version 1) ARPU lift in the U.S. is the highest result by country

By OS

Android users showed the highest ARPU increase at +10.8% for test version 2, while iOS users demonstrated significant gains across both test versions

By frequency

Recurring donations showed the strongest ARPU gains for test version 2

Additional insights

One large faith-based organization saw a +17.6% ARPU increase, the highest across all accounts

Conclusion

The new AI model (version 2) delivered the highest lift in ARPU with no downside to cost coverage conversion. It’s now live across Checkout to help nonprofits raise more from every donation.

What this means for you

The Adaptive Cost Coverage feature is a powerful revenue driver, and now it’s even smarter.

With the latest AI model live, your donors see the most effective ask at just the right moment, leading to bigger gifts without added friction.

And turning it on? Just tick a box. Here’s what our customers are seeing today:

Up to 3% increase in revenue when Adaptive Cost Coverage is enabled
+75% lift in fee coverage rates (vs. when donors aren't prompted)
80% average fee coverage rate with AI enabled

→ Explore how AI improves the donation experience

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