Table of Contents

1. What Are Platform Fees in Fundraising?
2. What 'No Platform Fees' Actually Means
3. Why No Platform Fees Matter for Nonprofits
4. Pros and Cons of No-Fee Fundraising Platforms
5. Platform Fee Comparison: 2026
6. How BetterWorld Does It Differently
7. Frequently Asked Questions

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 percentage-based charges that fundraising platforms deduct from each donation you receive — essentially their commission for providing the technology. If a platform charges a 5% fee and a donor gives $100, the platform keeps $5 and your nonprofit receives $95 before any other deductions.

Most platform fees range from 2% to 12% per donation, and they stack on top of standard payment processing fees — typically 2.9% + $0.30 per transaction — charged by credit card processors like Stripe. Even a platform advertising a low fee can cost significantly more once all charges are combined.

Fee example: A nonprofit raising $50,000 online on a platform with a 5% fee loses $2,500 to platform costs alone — before processing fees. On a platform with 0% fees and full donor tip coverage, that same campaign keeps the entire $50,000.

What ‘no platform fees’ actually means

When a fundraising platform says it charges 'no platform fees,' it means the platform takes 0% of your donation revenue. There is no percentage cut, no commission, and no transaction-based platform charge.

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.

Sources: Platform pricing pages and published fee schedules. Fees subject to change — verify directly with each provider before selecting a platform.

How BetterWorld does it differently

BetterWorld is a 100% free nonprofit fundraising platform — no platform fees, no subscription costs, and no hidden charges. The only cost is the standard card processing fee of 2.9% + $0.30 per transaction, which more than 90% of donors opt to cover voluntarily.

What's included at no cost:

• Online auctions (live and silent)
• Peer-to-peer fundraising campaigns
• Ticketed events and galas
• Giveaways and prize-based fundraisers
• Recurring / monthly giving programs
• Fully branded, customizable donation pages
• Donor management and reporting tools

BetterWorld funds its operations through voluntary donor tips — the same mechanism that allows your nonprofit to receive 100% of each gift. There are no contracts, no fine print, and no upsell tiers. Start fundraising for free or request a demo.

Frequently Asked Questions

1. Does 'no platform fee' mean the platform is completely free?

No — 'no platform fee' means the platform doesn't take a percentage of your donations, but payment processing fees still apply. Credit card processors charge 2.9% + $0.30 per transaction regardless of the platform. On BetterWorld, donors are prompted to cover this fee, and more than 90% choose to do so.

2. What is the difference between a platform fee and a processing fee?

A platform fee is what the fundraising company charges for its technology; a processing fee is what the credit card network charges to move money. Platform fees are set by the fundraising tool and can be zero. Processing fees (typically 2.9% + $0.30) are set by payment processors like Stripe and apply to every online transaction, on every platform.

3. How do no-fee platforms make money?

Most no-fee platforms make money through optional donor tips or subscription plans. BetterWorld uses the donor tip model: donors are invited to leave a voluntary contribution to BetterWorld before completing their gift. The nonprofit receives 100% of the original donation. Donors are not required to tip, but most choose to.

4. Is BetterWorld really free for nonprofits?

Yes — BetterWorld charges nonprofits zero platform fees and has no subscription or setup costs. The only charge is the standard 2.9% + $0.30 payment processing fee per transaction, which most donors voluntarily cover. There are no contracts, no hidden charges, and no feature paywalls.

5. Which fundraising platform has the lowest total fees?

BetterWorld has the lowest total cost for most nonprofits — effectively $0 in platform fees and near-zero processing costs due to high donor tip coverage. Donorbox is also low-cost at 0%–1.75% platform fee, but doesn't have the same level of donor-covered processing. GiveButter can match BetterWorld's fee structure when donor tips are enabled.

6. Should my nonprofit switch to a no-fee fundraising platform?

If your organization raises $20,000 or more per year online, switching to a no-fee platform like BetterWorld can meaningfully increase the dollars that reach your mission. The switch is free, there's no contract, and BetterWorld offers a broader feature set than most fee-based alternatives.