The Real Cost of ‘Free’ Fundraising Platforms: A Wake-Up Call for Nonprofits

In the fast-moving world of nonprofit fundraising, “free” can be a tempting word. Lately, a flood of fundraising platforms has entered the market offering nonprofits what appears to be a dream deal: zero upfront cost, no monthly fees, and a plug-and-play experience.

But here’s the reality: free platforms aren’t free. And the ones footing the bill? Your donors.

The Hidden Price Tag Behind “Free”

Let’s break this down. These platforms typically monetize their services by taking a cut of every transaction, often between 10-20%, once you tally up transaction fees, platform tips, processing fees, and “optional” add-ons.

They avoid charging nonprofits upfront by quietly shifting the burden onto your supporters. Donors may be prompted to “tip” the platform, unknowingly covering your operational costs. And if they choose not to tip? The platform still deducts fees from the donation itself. That’s not donor-friendly. That’s donor fatigue waiting to happen. 

Plus, you want every donor dollar to go where it matters most, directly to your organization. When platforms tack on fees or ask donors to cover “tips,” it not only chips away at their generosity but also reduces the real impact of their gift. This model shifts the financial burden from the nonprofit to the donor, leaving less money in their pockets and fewer funds driving your mission forward.

Let’s Do the Math

Say you host a donation campaign with 100 donors. Each donor gives $500 (the 2024 average size donation in ClickBid!)

You save $6,955. That’s money your organization can use toward mission-related activities, your programs, your impact, your team, not transaction fees to your software provider. 

Now multiply that number by however many events or campaigns you host per year. That’s a lot of missed revenue. 

And with ClickBid’s flat annual fee, you get unlimited events and campaigns. Once you’ve covered the cost with just one successful event, every campaign after that is pure fundraising power, with no additional platform fees for the rest of the year. 

Of course, on both platforms, you can offset the credit card fees to your donors or give them the opportunity to pay those fees.

Suddenly, that “free” platform is costing you and your donors far more than a transparent, flat-rate solution.

Your Donors Want to Give to You, Not a Platform

Donors are more informed than ever, and they’re paying close attention to how much money they’re spending. When they go to make a donation and see an automatically added “service fee” or “tip” tacked onto their gift, it creates confusion and frustration. Many donors don’t realize they’re being asked to help cover the cost of the software you’re using, and that percentage can quickly climb, especially when combined with standard credit card processing fees.

Tipping fatigue is real. From takeout to fundraising platforms, donors are being asked to contribute even more on top of their donation. It frustrates the giving experience and leaves supporters questioning where their money is really going. 

That’s why ClickBid takes a different approach.

Why ClickBid is Different

Honest, straightforward pricing goes a long way, especially when you’re working hard to make every dollar count. With ClickBid, you get a trusted partner and all the essential tools you need to host smooth, successful fundraisers without hidden fees or additional add-ons.

From mobile bidding and ticket sales to donation pages, peer-to-peer fundraising, donor messaging, and day-of-event tools, ClickBid gives you a full-featured platform designed to handle everything in one place. You can easily communicate key event details with attendees, organize tables and sponsor signups, manage your live and silent auctions, capture pledges, collect payments, and reconcile with ease, without juggling multiple systems or vendors.

And while our platform is user-friendly, it’s backed by real people with real experience. From pre-event walkthroughs and day-of event phone support and live chat support during business hours, our team is here to support your success every step of the way.

With ClickBid, you get:

• Straightforward annual pricing
• Unlimited events and campaigns
• No transaction-based surprises
• Silent & live auctions, donation campaigns, ticketing, and more—all included

ClickBid is built for nonprofit professionals who want full control, full features, and full transparency. You’ll never have to explain to a donor why their $100 gift turned into $120, and you’ll never wonder where your fundraising dollars are going.

Know the Real Cost Before You Commit

Before jumping on the “free” bandwagon, ask the tough questions:

• What percentage of each donation goes to fees?
• Will my donors be asked to cover platform costs?
• How much could I lose over the course of a year?
• What is the donor experience like?

Because when you add it all up, free isn’t always free, and uncovering the real costs takes some digging. Before you adopt a platform, take time to research the fine print, ask the hard questions, and make sure the model truly aligns with your mission and donors’ experience. 

You work hard to raise every dollar. And your technology partner should work just as hard to protect it. Before signing up for a “free” fundraising platform, make sure it’s not costing you more in the long run, because at the end of the day, transparency builds trust, and trust builds lasting donor relationships.