What does 'no platform fees' really mean? (And why it matters)

For nonprofit fundraisers, every dollar raised should be directed toward the cause, not toward overhead. However, many online fundraising platforms take a cut from each donation, often without fundraisers realizing the extent of their loss.

In this article, we’ll break down what “no platform fees” actually means in fundraising and why it makes a real difference for nonprofits trying to keep more of what they raise.

What are platform fees in fundraising?

Platform fees are charges that fundraising or crowdfunding platforms take from each donation you receive. In simple terms, it’s the platform’s commission for letting you use their tools.

For example, if the platform charges a 5% fee and someone donates $100, the platform keeps $5, so your nonprofit gets $95 before any other charges.

These fees usually range between 2% and 10% per donation. And that’s on top of standard payment processing fees, which are typically around 2.9% + $0.30 per transaction. Even if a platform advertises a low platform fee, the total cost to you can be higher once all fees are added up.

What ‘no platform fees’ actually means

When a platform says it has “no platform fees,” it means they don’t take a percentage cut of donations at all.

Instead, these platforms often earn money in other ways, like offering add-on services or asking donors to leave an optional tip to help cover operating costs.

The key benefit here is that your nonprofit retains 100% of the donation amount, aside from the required processor fee.

Just remember, platform fees and payment processing fees are not the same. Even with a “no platform fee” option, the credit card company still charges its fee.

But here’s some good news: most donors are willing to cover that processing fee when prompted, especially if it means their full donation goes to your cause.

Why ‘no platform fees’ is a big deal for nonprofits

For nonprofits, every dollar makes a difference, and losing a percentage of each donation to fees can quietly chip away at your impact.

Here’s why switching to a no platform fee model can make a real difference:

• Every percentage counts: Most nonprofits work within tight budgets, and even a small percentage loss can quickly grow. An 8% platform fee on $50,000 in online donations would take $4,000 away from your programs.
  
  That’s money that could have been used to serve more people, run a new initiative, or simply ease the pressure on your team.
  
  
• It affects donor trust: When donors give, they expect their contribution to support your mission, not a third-party platform. Learning that part of their gift goes elsewhere can leave donors feeling misled, which can hurt long-term trust.
  
  With a no-fee platform, donors know their money is going straight to your organization, which better reflects their intent.
  
  
• You keep more of what you raise: Platforms that don’t charge a percentage fee give you a clear advantage. Instead of losing X% of donations to platform and processing costs—as some small nonprofits do—you hold onto more of each gift.
  
  Some platforms report that over 90% of processing fees are covered by donors, which means your nonprofit often receives the full donation.

Fee structure of some fundraising platforms

Below is a quick comparison of platform fees for several well-known fundraising platforms that charge a percentage of donations.

How BetterWorld does it differently

BetterWorld is a true no-fee fundraising platform. It takes 0% of donations, charges no subscription, and has no hidden costs. The only fee is standard card processing (2.9% + $0.30), which most donors choose to cover, so nonprofits often keep the full donation.

There are no contracts, no fine print. Just a simple model funded by optional donor tips, so more money stays with your mission..

Start fundraising with BetterWorld and keep 100% of what you raise. Sign now to get started.