Charity CHAMPs – get involved with microphilanthropy now!


Non-profit payment processing costs by sylvng

On my last post I talked about the fees involved with donation processing. The thing is, depending on what provider a non-profit is using, the fees can vary greatly. The higher the volume of donations the lower the fees usually, so it’s hard to say exactly what overhead a non-profit is incurring, but there are general rates that providers would quote. So the next time you make a donation online, look out for what provider the charity is using. Why should you care? Well, if that provider is charging a fee, then that’s less money for the charity when you make a donation!

Here are a few basic transaction providers and some basic quoted rates for non-profits / charities. I have a much longer list including PayStone, Merchant-Accounts.ca, CanadaHelps.org, etc. but that will have to wait for another day.

  1. PayPal
    Charges 1.9% to 2.2% +$.30 per transaction, can be used by both Canadian and US registered non-profits.
  2. Google Checkout
    Used to be free for US 503(c)(3) organizations, but not anymore. From now until May 5, 2009, the charge is 2% + $0.20 per transaction, then it’s onto Google’s tiered system, at which a small non-profit like Charity CHAMPS would have to pay 2.9% + $0.30 per transaction. Of course, there’s a discount if the non-profit also uses Google Adwords to advertise, so that could be a good reason to use Google.
  3. Amazon FPS
    Only US charities would qualify for the reduced non-profit rates, but the rates are certainly good for small transactions below $10. The fees also depend on the type of transaction. It’s 1.5% + $0.01 for Amazon Payments balance transfers, 2.0% + $0.05 for bank account debits, and 5.0% + $0.05 for credit card.

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