Givealittle to charge 5% fee
Stuff reports:
Online charity fundraiser platform Givealittle which has helped raise money for sick children and charities, among other causes, is going to start charging for its service.
From September 1, Givealittle will introduce a 5 per cent fee on the total amount raised by fundraisers on the site.
This means a campaign which raises $50,000 will have to pay Givealittle $2500. …
In a statement, chief giving officer Tom Beyer said running a crowdfunding platform came at a cost.
“So we need to cover the expense of the work we do everyday in keeping the site running, and improving the customer experience.”
The fee would cover some of Givealittle’s costs, specifically payment processing and website hosting (which are both outsourced), as well as staff for customer service and website development, Beyer said.
The fee was about “supporting and enabling growth”, he said.
“There is no intent to make a profit from Givealittle.”
Costs have to be covered but how reasonable is 5%?
- Global Giving takes 15%
- Pledge Me takes 5% (and credit card fee of 2.5%)
- Go Fund Me 5%
- Boosted 10%
- Every Day Hero 5.5%
- Social Backing 5%
- Kick Starter 5%
- Fundraise Online 5%
- Indiegogo 4%
So 5% seems to be the standard rate.