Is Givebutter Free?
It's completely free to use every standard feature on Givebutter. You don't have to pay anything to create an account and run a campaign, and you'll never see a bill from us... unless we hire someone named Bill.
You can view our pricing page for a full breakdown of our different products and their associated fees. Givebutter does offer Pro & Premium tiers, Giving Hubs, and Chapter features which include additional subscription fees, learn more.
What are the fees per transaction?
Givebutter is proud to offer the lowest rates in the fundraising industry. They are organized by product:
- Collect - 0% with tips | 1% without tips
- Fundraise - 0% with tips | 3% without tips
- Events - 0% with tips | 5% without tips
- All products include every feature in the Givebutter Platform at no additional cost whatsoever.
Note: All transactions are subject to standard credit card payment processing fees of 2.9% + 30¢. This processing fee applies to all payment methods on Givebutter.
To help us provide this free and transparent platform with industry-low fees, donors may be presented with the option to "tip" Givebutter – this is completely optional and in no way affects your overall fee or payout amount. Learn more about tips and fees.
How fees are calculated
You may be seeing a lot of percentages and wondering: how is all this actually calculated? Well, since credit card companies take their fees after platform fees, it can be a little complicated. There are even whole websites dedicated to the topic.
Here's the basic formula:
(Transaction amount * (1 + platform fee) + 30¢ credit card fee) / (1 - processing fee)
So, for our example above, a $100 donation on a Collect campaign (1% platform fee + 2.9% & 30¢ processing fees) would be calculated like this:
(100 * 1.01 + 0.30) / (1 - 0.029) = $104.33
What are the fees to users?
The average fee to users across all campaigns on Givebutter is only 0.5%
That is incredibly low, so let's break down exactly how it works. Every time someone donates to a campaign, they are given the option to cover the entire fee on their donation:
Our 0.5% average fee is made possible by the fact that over 95% of donors across all campaigns on Givebutter have chosen to cover this fee.
In the event that a donor chooses to not cover their fee, Givebutter takes that same fee out of the full donation amount. The user then receives the remainder without actually pay anything out of pocket.
Sometimes, it's easier to understand how the 0.5% fee works with an example:
Let's say you received 100 donations of $100 each ($10,000 total). Based on our 90% metric, let's assume 90 of your 100 donors covered the fees associated with their donation. That means 10 donors chose not to cover the $4.33 fee on their donation. As a result, your fee is 10 x $4.33 = $43.30. Therefore, when you withdraw your funds you will receive $10,000 - $43.30 = $9,956.70. What is this in percentage terms?
(1 - (9,956.70 ÷ 10,000)) x 100 = 0.43%
Why is this better?
First of all, 0.43% is really low. Most other sites similar to Givebutter take 3-10% and don't tell donors. Which leads me to my second point...
Transparency, transparency, transparency. Online giving has a cost - credit card fees, hosting, support, maintenance, R&D, etc. are all costly expenses that using a platform like Givebutter absolves for you. And by making donors aware of that, you are not only providing them with absolute transparency but also raising more funds in the process.