Starting August 1, online giving leader Network for Good will deduct a transaction-processing fee of 3% per donation. This amount, which is comparable to what other low-cost online donation services charge, will cover some of the “hard” costs associated with handling transactions, including credit card fees, electronic funds transfer and check writing, banking fees, and data management. Donors will also be encouraged to contribute a flat $3 per transaction toward helping Network for Good sustain its program.
From its inception in November 2001, Network for Good has paid 100% of the costs associated with processing and distributing charitable donations. Since Network for Good has grown dramatically in the past year – it expects to process more than $20 million in donations in 2003 – it is no longer sustainable for them to pay these costs in their entirety.
Ken Weber, Network for Good’s President, explains, “we are a small nonprofit ourselves, and are committed to serving other nonprofits, especially the small and medium-sized ones, as they adopt and become proficient at online fundraising”. He added “our decision is mission-driven and made entirely in the spirit of ensuring that our services remain accessible and viable over the long term so that as many nonprofits as possible may benefit from them.”