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How to Maximize Your Online Donation to Charity
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Online and mobile payments have made donating to charity easier. But this convenience often comes at a price.
A transaction or processing fee may be applied if you use a credit card or a third-party service for nonprofits to make a gift. If you make a $100 donation, the charity may get less than that.
If you want to ensure that as much of your digital donation gets to your charity as possible, here’s what you need to know.
How to deliver 100% of your gift
Some payment companies have programs to pass along an online or mobile donation in full.
The credit card issuer charges a 2.25% transaction fee, subtracted from your gift, for each donation through its Members Give program. But if you have membership points, you can donate them and avoid the fee, according to the Members Give FAQ section. Charities will receive $10 for every 1,000 points you redeem. However, before you donate, check to make sure this is an optimal use of your points, which can vary in value. The issuer partners with the nonprofit JustGive to let cardholders donate online to over 1 million charities.
Discover partners with JustGive for its Discover Giving program. Discover deducts a 2.25% transaction fee from your donation for processing costs, but cardholders can use their cash back bonus to make donations with no associated fees to the charities listed on the Cashback Bonus charitable donation page.
Although it s less convenient, you can also send money the old-fashioned way by sending a check directly to a charity. Transaction fees won’t kick in, and you have the canceled check as your receipt.
How about Facebook?
You can also send money to charities through Facebook. The plus here is that Facebook vets the charities, though at a cost. According to Facebook’s charity giving FAQ. donations made to nonprofits that have signed up directly on Facebook s fundraising tools incur a 5% fee — 3% for payment processing and 2% to cover expenses including the costs of vetting organizations that receive donations. That means charities get 95 cents per dollar donated.
Third-party payment methods
Here’s a look at several processing companies’ transaction costs, which typically are taken out of the gift: