Team PHenomenal Hope uses the Crowdrise fundraising platform, which bills itself as “the #1 fundraising site for charitable causes.” It’s easy to make a bold claim on your own website, but Crowdrise’s partners – industry leaders in the charity fundraising world – go a long way to support this claim.
The American Red Cross, The Boston Marathon, IronMan, Active Network, Tough Mudder, Unicef, and the American Cancer Society are just a few of the global charity fundraisers who use Crowdrise. Ok, so it’s good enough for them but that doesn’t mean it is good enough for us, right?
I thought the same.
Looking deeper, Crowdrise has a “Best Pricing Guarantee”, which made me curious. Here are the details:
The per transaction platform fee is 5.9% for the Tre ($50/month plan) and 6.8% for the Fiver (free plan) + credit card fees of 2.9%+$0.30
That does not sound too competitive. But then here is the guarantee:
If all of your donors cover the fees, you’ll have cost-free fundraising. If your donors don’t cover enough of the fees to deliver your guaranteed pricing (3% for Tre plan charities and 5% pricing for Fiver plan charities), we will cut the charity a check for the difference on a quarterly basis.
Note that we exclude individual donations $1,000+, registration fees, and fundraising minimum makeup charges from the guarantee.
Next, I ran some quarterly reports on our Crowdrise account. Doing some simple math, it turns out that most donors elect to cover the fees themselves. This means, on the randomized quarters I targeted, between 98-99% of the donations were coming through to Team PHenomenal Hope.
And we did not have to do much in the way of building hardware infrastructure, developing software, or maintaining secure versions of donor lists and credit card information.
99%. That is pretty amazing. As Crowdrise states on their website along with the notes on fees:
… over 93% of donors do. Right now, over 3,500 charities are on the CrowdRise Guaranteed Pricing and because so many donors choose to cover their fees, they are keeping an average of $98.40 of every $100 raised. That’s by far the lowest pricing in the entire crowdfunding world.
And the convincing factor? Well, why use resources to build our own system or buy, configure, and maintain something “off the shelf” when an option like Crowdrise is out there and will incur a fee of a little more than 1% of the transaction?
We use Crowdrise because we know donor contributions matter. We want as much of that transaction to go where each donor intended so that together, we can win the race to bring improved quality of living to those suffering from Pulmonary Hypertension.