Understanding fee coverage and tax deductibility
When fee coverage is enabled, supporters can choose to add an amount that helps cover the Fundraise Up fee and applicable payment processing fees. This is an optional increase to the donation, not a card surcharge.
Fee coverage does not remove these fees. It helps offset costs that your organization would otherwise absorb.
How fee coverage works in Fundraise Up
Fee coverage increases the donation by an optional amount that helps offset applicable fees. Here's how it works:
- Original donation amount: The supporter enters their intended donation amount on the donation form.
- Optional fee coverage: The supporter can select Cover transaction costs to add an amount toward the Fundraise Up fee and applicable payment processing fees.
- Suggested additional amount: Fundraise Up calculates an estimate based on the original donation amount and expected fees.
- Total donation: The supporter pays the original donation plus the optional fee-coverage amount. This additional amount helps reduce the costs that your organization absorbs.
Tax deductibility of fee coverage
Tax deductibility varies by jurisdiction and depends on the organization and donation.
If a donation is tax-deductible, the additional fee-coverage amount may also qualify as part of the supporter’s total contribution. Organizations and supporters should consult a qualified tax professional to determine how fee coverage should be treated.