Donor-covered fees: how your organization receives 100% of every contribution

Every digital payment has a processing cost. That's the reality of moving money with cards: a small part of each transaction covers the system that makes it possible. The question every organization must answer isn't whether that cost exists —it's who covers it: the organization or the contributor.

Most organizations never ask the question, absorb the cost silently, and discover at year's end that their $10,000 goal yielded less than $10,000. The donor cover fee exists so that decision is yours, not an invisible default.

What it is, in one sentence#

The donor cover fee gives the contributor the option —or the responsibility, depending on how you configure it— to add the processing charge to their payment, so the organization receives the full amount.

In Redeema the processing charge is a single one: it covers the payment processor and the platform together, with no confusing breakdowns. What the donor sees is one clear line at checkout. Current charges are always published on our pricing page.

The two modes#

1. Optional — the donor decides at checkout#

At payment time, a checkbox appears: "Cover the processing cost so [your organization] receives 100% of your contribution." The donor checks it or doesn't. That simple.

It's the natural mode for fundraisers and donations, where the contribution is voluntary and covering the charge feels like part of the generosity.

2. Included per campaign — the organization defines it#

The board configures the campaign so the charge is always added to the price. The payer sees the total from the start; the organization receives the exact net amount it defined.

It's the right mode for dues, where each family's balance must reconcile to the cent: if the dues are $50, the fund receives $50 —not $48-and-change that nobody knows how to adjust later.

The statistic that surprises every board#

The typical fear: "if we ask the donor to cover the charge, they'll give less or not give at all." Industry data says the opposite: when the option is presented clearly, most donors —typically more than half, and on many platforms close to two-thirds— choose to cover it.

The reason is psychological: the donor has already decided to help. Adding a small charge so their help arrives whole doesn't feel like a cost —it feels like completing the gesture. What does kill donations is surprise: a hidden charge that appears without explanation. That's why the checkout line is clear and visible.

The impact in numbers#

An illustrative example with a hypothetical charge of $3 per $100 (actual charges are on /pricing):

Looks small per transaction. Now look at it at campaign scale:

And the accounting benefit is as valuable as the economic one: when the goal is $10,000 and donors cover the charge, the organization receives $10,000 — the goal and the net are the same number, and the treasurer never has to explain the difference.

Recommendations by module#

• ✓Fundraisers and donations → optional: let the donor complete their gesture
• ✓Dues → included: every family's balance reconciles exactly
• ✓Events and sweepstakes → included if you want a predictable net per ticket; optional if you prefer the lowest visible price
• ✓In every case → communicate clearly: transparency is what makes the donor say yes

The decision that reconciles the year#

The donor cover fee isn't a trick to charge more: it's clarity about who covers a cost that exists anyway. Organizations that configure it with intention net more, reconcile easier, and give their families cleaner accounting. Here's how it connects to the full bookkeeping system: how to manage your graduating class finances.

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