Online Fundraising: The Hidden Costs of Credit Card Donation Fees
This process has proved to reveal significant savings for nonprofits. Take, for instance, Make-A-Wish. Working with IMG, a review of its merchant services statement unveiled rates that did not factor in nonprofit status. In the first year, IMG found savings of about $40,000 for Make-A-Wish on credit card transactions.
Covenant House also found tremendous savings. After reviewing its agreement, IMG helped Covenant house save $25,000 in fees in December and January and $3,000 to $5,000 in savings per month the rest of the year.
Given the potential savings and the buzz around overhead, every organization should review its credit card transactions fees and agreements. You just may find extra savings, meaning more money toward the mission and more donor dollars making an impact.