We know how important it is to reduce the costs associated with running a non-profit and ensure that as much of your donations as possible go to your programs. That's why we've included a feature that allows donors to contribute a little extra when they make a donation online to help offset your online payment processing fees.
Allow donors to pay the processing fee
In the sections below, we'll explain how this feature works, how you can enable it on your Donation Forms in Keela, and how the data is stored in Keela.
How does it work?
If a donor gives $10, your payment processor typically takes a fee off that base $10 donation and you receive the remainder. When a donor opts to pay the processing fee, a percentage of their donation is added to the total amount; instead of donating $10, they contribute $10.53. That way, when Stripe or PayPal deducts their fees, the amount you're left with will be closed to $10.
After you enable the donor-paid processing fee feature, when a donor makes a donation on your Donation Form, they'll see an option to increase their donation amount to help cover the payment processing fees.
If they select 'Yes', an amount of approximately 2.2% of their donation total plus 30 cents will be added to the donation. This is the average processing fee rate* charged by our payment processing partners (Stripe and PayPal) for debit and credit card payments in your organization's currency.
*Note: Payments made with American Express are charged at a higher rate (3.5% plus 39 cents), and that payments from other currencies may be subject to higher rates as well. The amount added to the donation, however, is fixed regardless of payment method.
Enable donors to pay the processing fee on your Donation Forms
You can enable the option for donors to pay the fee by adjusting the setting on your Donation Forms.
Go to "Organization Settings > Forms" and select a Donation Form from the list. Don't have a Donation Form yet? You can follow the steps in this article to create one.
Select the "Design & Share" tab, and click on the "Open Form Designer" button.
Next, choose the "Edit" (pencil icon) button for the Gift Information section and select "Donation Settings" from the menu.
Next, click the checkbox for "Allow donors to cover processing fees for donations".
How is the payment processing fee stored in Keela?
The additional amount charged for the payment processing fee is not stored separately from the donation. Rather, it is included in the donation total.
For example, if a donor donates $100.00 and chooses to cover the fees, the total donation amount will be $102.56. This is calculated as ($100 + $0.30) / (1 - 0.022) = $102.56.
Here's an example of how the donation would appear in Keela on the Donation tab for that contact: