Donation Platforms: What to Know Before Giving Tuesday

Choosing the Best Way to Collect Donations on Giving Tuesday

Giving Tuesday is all about building momentum — but that momentum doesn’t mean much if donations are hard to collect, slow to arrive, or eaten up by fees.

At Grand Rapids Tech, we’ve taken a close look at popular fundraising platforms — including Givebutter, GoFundMe, Bloomerang, Blackbaud, and Donorbox — along with direct options like Venmo, cash, and checks. Our goal? To help small nonprofits understand what really matters when it comes to collecting donations: how easy it is for donors to give, what fees actually get deducted, how clean the bookkeeping is, and how fast the money hits your account.

Quick takeaways

• If you want the easiest donor experience and good donor data: use a donation platform (Givebutter, Donorbox, Bloomerang, Blackbaud). They provide forms, receipts, and integrations with Stripe/PayPal.
• If you want the lowest visible fees for donors: Givebutter’s “tips enabled” model can make the org’s apparent fees $0 (donors cover processing via optional tips). Still verify the fine print.
• If you want lightning-fast, informal donations from friends & supporters: Venmo (or Cash App) is convenient — but it’s not ideal for tax receipts unless you use Venmo’s charity profile and you must account for Venmo’s charity fee.
• Checks and cash have no processor fee but add admin work (depositing, tracking, issuing receipts, potential lost opportunities).
• Platform + processor fees are the real cost. Stripe (a common processor behind many platforms) typically charges 2.9% + $0.30 per card transaction in the U.S. Always check the payment processor used by the donation tool.

Short platform-by-platform breakdown

Givebutter — donor-friendly, free option if donors tip

• What it is: modern donation pages, ticketing, peer-to-peer capabilities, live fundraising feed.
• Fees: If you keep “tips” enabled, Givebutter advertises that nonprofits pay $0 in platform/processing fees (the Givebutter Guarantee means the donor tips cover fees). If you disable tips, standard processing (e.g., 2.9% + $0.30) and/or a platform fee applies. Read the dashboard settings before going live.
• Good for: small orgs who can ask donors to cover fees and want modern campaign pages and livestreamable progress.

Donorbox — simple donation forms with donor coverage option

• What it is: embeddable donation forms, recurring giving, event pages; integrates mostly with Stripe/PayPal.
• Fees: Donorbox charges a platform fee (advertised ~2.95%) on top of payment processor fees — though organizations can ask donors to cover those fees at checkout. Processor fees (Stripe/PayPal) still apply (e.g., Stripe 2.9% + $0.30).
• Good for: orgs who need embeddable forms and recurring giving quickly with minimal setup.

Bloomerang Fundraising / Bloomerang CRM — fundraising + database; built-in processing

• What it is: donor CRM with fundraising tools; they offer payment processing options inside the product.
• Fees: Bloomerang memberships range from $480 - $1,5000 annually. Bloomerang indicates platform/processing fee structures in support docs (examples: platform processing fees such as ~1.95% for Bloomerang Fundraising — check the product/pricing page you plan to use). Processor rates can vary depending on the organization’s purchased membership package.
• Good for: organizations that want donor management + fundraising in one place and can commit to a CRM workflow.

Blackbaud (Raiser’s Edge NXT / Blackbaud Integrated Payments) — enterprise features

• What it is: full nonprofit CRM/ecosystem; often used by midsize and large orgs.
• Fees: Blackbaud markets “zero online transaction fees” with certain fee-offset options, but payment processing rates depend on the Blackbaud merchant setup. Blackbaud provides integrated payment processing and you’ll want to confirm the exact card rates for your account. (Their published regional pages show typical card rates applied through BBMS.)
• Good for: orgs needing a powerful CRM and integrations; less ideal for tiny groups due to cost/complexity.

GoFundMe — broad donor reach; good for viral crowdfunding

• What it is: public crowdfunding platform with discoverability and sharing. GoFundMe has offerings for charities (GoFundMe Charity / Pro features).
• Fees: GoFundMe commonly charges a transaction fee for charitable fundraisers (example: 2.2% + $0.30 per donation in many markets); individual fundraisers may have different processing rates. Note: platform tip options are often present and policies have changed over time — confirm current charity pricing in your country.
• Good for: peer-to-peer / viral appeals where discoverability and simple sharing matter.

Venmo, Cash App, Zelle — “direct” digital payments

These peer-to-peer apps are very popular among donors who want instant, casual giving — but they behave differently than donation platforms.

Venmo: three main ways orgs encounter it

1. Person-to-person transfer between personal accounts — typically free if funded by Venmo balance, bank account or debit card; credit card use is charged to the sender (around 3%). Instant payouts/instant transfer to bank have fees.
2. Venmo charity profile — Venmo offers a charity profile for registered nonprofits. Venmo charges a donation fee for charity profiles: 1.9% + $0.10 per donation (for donations of $1.00 or more). This allows for receipts and is a better option for tax-deductible gifts.
3. Business profile (merchant) — charges may apply for merchants; Venmo also charges fees for certain merchant transactions and instant transfers. Business accounts are intended for sales, not tax-deductible gifts unless you issue receipts yourself.

Key Venmo transfer fees to note:

• Standard bank transfer (1–3 business days) → usually $0.
• Instant transfer to debit card/bank (minutes) → percentage fee (Venmo advertises an Instant Transfer fee around 1.75% with $0.25 minimum; confirm in-app). Venmo Fees

Cash / checks / Zelle

• Cash: no processing fee, but bookkeeping/receipt and security/admin overhead. Cash donations must be logged, receipted, and stored/deposited.
• Checks: no processing fee from a processor, but bank deposit costs (if any), time, and manual reconciliation. Checks are great for major donors who want tax-deductible receipts and for donor stewardship.
• Zelle: designed for bank-to-bank person transfers; often free for personal use but not ideal for nonprofit receipting (banks may treat business use differently). Check your bank’s policy before advertising Zelle for donations.

Why the fee numbers vary (and what to check right now)

• Two layers of fees are common: the platform fee (what the giving platform may charge) and the payment processor fee (Stripe, PayPal, etc.). Some platforms bundle or offset fees in different ways (tips, fee offset, subscription). Always confirm both. Donorbox Pricing
• Promotions and negotiated rates: bigger nonprofits can negotiate lower processor rates; tiny orgs typically pay listed rates.
• Geography & payment method matter: ACH/bank payment fees are often lower than card fees; international cards incur higher fees.

Quick fee reference

• Stripe (common processor) — 2.9% + $0.30 per card transaction (U.S. domestic cards); ACH and international rates differ.
• Givebutter — advertised $0 to nonprofit if donors cover fees via tips; otherwise shows standard processing (2.9% + $0.30) or platform fee options.
• Donorbox — ~2.95% platform fee + payment processor fees (Stripe/PayPal). Donors can opt to cover these.
• GoFundMe (charity pages) — ~2.2% + $0.30 per donation (may vary by country and by whether the fundraiser is for a certified nonprofit). Confirm current rate for your region. GoFundMe Pricing
• Venmo charity profile — 1.9% + $0.10 per donation for charities. Standard peer transfers funded by bank/debit are generally free; instant bank/debit transfers carry a small percentage fee.
• Bloomerang / Blackbaud — these vendors have tiered pricing / processing that can vary; Blackbaud advertises fee offset options and integrated merchant services — get a quote or read the product payment pages.

Practical recommendations for small nonprofits — pick by priority

1. If you need receipts and donor data (recommended for most organizations): Use Givebutter or Donorbox (or Bloomerang if you already use the CRM). They provide receipts, integration with Stripe/PayPal, and simple donor management. If your audience is likely to agree to cover fees, Givebutter’s tip model will show the org “net $0” fees in many cases. Givebutter pricing
2. If you want discoverability and viral reach: Use GoFundMe for peer-to-peer visibility — but be aware of the platform’s transaction fees and how the funds are routed to nonprofits.
3. If you want the cheapest per-dollar cost and are OK with manual work: Accept checks and cash (no processor fee) and invest staff time in deposit/receipting. This is often the best option for larger gifts.
4. If donors are younger and expect social payments: Offer Venmo (and display a QR code) — but if you need tax-deductible receipts, encourage donors to use your Venmo charity profile or a donation platform that issues receipts. Venmo P2P personal transfers are simple but poor for record-keeping and tax documentation. Venmo Help Center

5. Hybrid approach (often the smartest for Giving Tuesday):

• • Run a polished donation page (Givebutter or Donorbox) as your primary call to action (this captures donor info and issues receipts).
  • For on-the-spot, in-person donors, accept Venmo/Cash/Checks and log them later into your donor system.
  • Promote a QR code that links to your main donation page and show your Venmo handle as a secondary option for peer donors.

A sample checklist for your Giving Tuesday page

• Donation page URL & QR code (test it on mobile)
• Clear language about receipts / tax deductibility
• Optional “cover fees” toggle (or instructions asking donors to add a tip) — be transparent with donors about how fees are handled
• Plan for in-person donors: who logs cash/checks & who issues receipts?
• Prepare a Venmo QR only if you’ll reconcile and provide receipts for those gifts (or use Venmo charity profile).

Final thoughts — a few plain truths

• The cheapest route (no processor fees) is not always the best route. If you want strangers to give quickly and receive a tax receipt, a trusted donation platform wins.
• Transparency builds trust. Tell donors who will cover fees (you or the donor) and how they’ll receive a receipt.
• Run a quick test donation before Giving Tuesday (desktop + mobile) so you know exactly what donors see and what your staff will receive in the backend.