GiveLoop Fee Structure

We at GiveLoop hate fees. However, given our present operational costs and the way online donations currently work, we need to charge a small fee for each donation at this time. That said, we are actively working hard to figure out ways to the remove the transaction fee since we believe that is the future of online donations. In the meantime, here is how our fee structure works and how you, as a donor or campaign manager, can reduce these fees.

• Fee Types
• Ways Donors Can Reduce Fees
• Ways Campaign Managers Can Reduce Fees
• Examples

Fee Types

1. GiveLoop Fee (fixed): GiveLoop currently charges a fee of 5% of each donation. Our fees are used to cover our operational costs and ensure the best online donation experience for both donors and campaign managers.

2. Credit Card Processing Fees (variable): If a donor pays with a credit card, that donation will be subject to a credit card processing fee. This fee varies from campaign to campaign since each campaign owner may have a different credit card processing solution.

   Typically this fee can vary between 1% and 2.9% plus about $0.30 per transaction, depending on the type of business collecting money (e.g. non-profit organization typically receive lower fees) and how much they transact per month (e.g. organizations who transact more, typically receive lower fees).

   One way to remove this fee is to pay with your PayPal account balance or bank account (see below).

Ways Donors Can Reduce Fees

1. Pay with your PayPal account balance or bank account: If you pay with a credit card, credit card processing fees may apply to your donation (see above). If you have money in your PayPal account or have a bank account linked with your PayPal account, we encourage you to pay using those methods since it will remove the credit card processing fees.

2. Choose larger, less-frequent donations over smaller, frequent donations: Since most credit card processors charge a fixed fee (usually $0.30) in addition to a percentage fee, organizations receiving donations will achieve greater value from your donations if they are larger. Typically, we would suggest a total donation of $10 or more to get a relatively fair value for your money.

3. Cover the Fee: We give donors the option to cover the transaction fee partially or completely so that the campaign gets as much of the intended donation as possible. Donors can do this during checkout.

Ways Campaign Managers Can Reduce Fees

1. Apply for your PayPal account as a non-profit if you are one: Typically PayPal offers reduced fees for non-profit organizations. See their site for more details.

2. Apply for PayPal micropayment pricing if your average total donation is less than $12: If your average donation size is less than $12, we suggest to use PayPal's micropayment pricing since the fees are adjusted to favor smaller transactions. Currently micropayment pricing is 5% plus $0.05 per transaction.

3. Encourage offline users to donate online: PayPal provides a tiered fee system that reduces fees when you reach a certain monthly transaction volume. So the more people you have doing online donations, the lower your fees. See their site for more details

4. Encourage users to use their PayPal account balance or bank account: This will eliminate your credit card processing fees (see above).

5. Encourage users to choose larger, less-frequent donations over smaller, frequent donations: Since most credit card processors charge a fixed fee (usually $0.30) in addition to a percentage fee, organizations receiving donations will achieve greater value from their donations if they are larger. Typically, we would suggest a total donation of $10 or more to get a relatively fair value for your money.

Examples

Below are some examples of how different payment methods might affect how much a campaign manager receives. As you can see, paying with a PayPal or bank account and donating larger sums results in higher yield to the campaign owner.

* Example uses 2.9% plus $0.30 as a credit card fee, which is usually the highest credit card transaction fee for most credit card processors.