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I run https://hackclub.com https://hackclub.com, which has received donations via Facebook, through Stripe on our website (https://hackclub.com/donate https://h
by zachlatta 7y ago
I run https://hackclub.com https://hackclub.com, which has received donations via Facebook, through Stripe on our website (https://hackclub.com/donate https://hackclub.com/donate), through individuals, foundations, and donor-advised funds writing checks, through systems like Benevity (https://www.benevity.com https://www.benevity.com) that facilitate corporate matching programs and send the funds via ACH, and probably through nearly every other method out there.
Here's a breakdown of our processing fees:
* Facebook: None. They cover the credit card fee. If you're interested to see what data nonprofits get from Facebook, here's exactly what I see for our 2018 fundraisers: https://i.imgur.com/lsCFqJh.png https://i.imgur.com/lsCFqJh.png. Facebook has not taken noticeably longer to disburse funds than foundations we've worked with.
* Stripe donations: 2.2% + $0.30 for Visa / Mastercard, 3.5% for American Express (this is the nonprofit rate)
* Receiving checks: $25/check. We outsource receiving checks to a vendor to make sure they don't get lost and that we aways have scans on file.
* Benevity / electronic transfers / wires: None (our bank charges no wire fee)
On top of that, it's important to note that checks and manual ACH / wire transfers take the most processing time for me, as for each check I need to work with our accountants to ensure donor information is properly on file and the donor received any needed tax documentation. We're small enough where I'm still doing this myself for each check, which probably takes me 20-30 minutes for each donation. Up to an hour if the donor didn't include all their tax information with the check.
- smarri 7y agoI'm curious as to why Facebook eat the credit card fee? Do you know why they absorb that cost?
- zachlatta 7y agoNo, sorry. I imagine it's a comms problem. I did find this article from 2017 on it, which might provide more info: https://www.reuters.com/article/us-facebook-zuckerberg/facebook-to-eliminate-transaction-fees-on-donations-on-its-platform-idUSKBN1DT3BR https://www.reuters.com/article/us-facebook-zuckerberg/faceb...
- smarri 7y agoInteresting, thank you