On June 23, GiveMN Executive Director Jake Blumberg sent an email to all nonprofit and school organization administrators who use GiveMN.org for online fundraising. Read more below.
As GiveMN continues to evolve as a partner to nonprofits and schools, while leading the conversation about online giving in Minnesota and beyond, I am writing to announce two changes to GiveMN.org.
Donors may now cover your processing fees
First, I am pleased to announce that we have added a new feature to GiveMN.org that allows donors to pay the online processing fee for each gift made through our platform on behalf of the nonprofits and schools they support. We have heard from many donors who have asked specifically for the ability to pay the fee, ensuring 100% of their donation goes directly to your organization. Now, donors are positioned to be even more generous, and provide you with a cost-free donation by covering the fee on their donations through GiveMN.org.
Fee adjustment to sustain GiveMN programs
In concert with this feature, GiveMN is announcing that as of July 1, the processing fee for gifts made through GiveMN.org will be 6.9%. This fee is made up of 4.9% that is applied directly toward credit card and technology administration; and 2% to support GiveMN, giving events like Give to the Max Day, and our programs to grow giving in Minnesota. This is the first adjustment to our fee in 3 years and will mark the first time GiveMN has directed any fee revenue to support our operating budget.
Implementing these two changes simultaneously was important to us. Data from our national partner Kimbia, as well as Blackbaud and other industry experts, indicates that donors choose to pay fees approximately 40% of the time. Given this, we anticipate most organizations will net the same or a greater amount of money from donations through GiveMN.org in 2016 as they did in 2015.
And as GiveMN and other nonprofits encourage donors to cover the processing fee, we will work to increase that adoption rate even more—which will mean more revenue for organizations across Minnesota. GiveMN is committed to making this change as successful as possible for nonprofits and schools, and we are excited to share this message with donors throughout the year!
Join our virtual Town Hall on June 27
We’ve scheduled a virtual GiveMN Town Hall for Monday, June 27 at 11 a.m. to take your questions about these changes. To hear more and have your questions answered, please register for the event and submit your questions with this form.
Learn more about our decision-making with this podcast
I recently sat down with Steve Boland and the Next in Nonprofits podcast to discuss more about this change, why it is integral to GiveMN’s sustainability, and through us, the sustainability of the thousands of organizations that rely on GiveMN.org for their online fundraising needs. I hope you’ll listen to our discussion to learn more.
Read below to learn more about the donor pay feature and fee increase, what it means for your organization, and resources for your staff, board and donors.
Thank you for all that you do for our communities!
Executive Director, GiveMN
What will this mean for your fundraising through GiveMN.org?
Based on national data from our technology partner Kimbia, and national fundraising platforms like Blackbaud, donors opt to pay processing fees approximately 40% of the time. Given this, we anticipate the average organization will net approximately the same or slightly more money in their disbursement checks in 2016 as they did in 2015. Here’s how:
- On Give to the Max Day 2015, the average organization received a disbursement of $3,000 after the 4.9% fee was deducted.
- Should that organization raise the same amount on Give to the Max Day 2016, and 40% of donors opt in to pay the 6.9% fee, the organization would receive $3,024, for a small but important net benefit.
How your organization can gain the most with the new feature
GiveMN has created a toolkit for your organization as a resource for board and staff to discuss these changes with your supporters, including more frequently asked questions and customizable language you may choose to use in emails, newsletters or social media.
Read more at GiveMN.org/resources.
More on the cost of fundraising
Nonprofits and schools use a variety of methods to fundraise. Online fundraising continues to be among the most cost-effective fundraising strategies, and our data shows that it is especially effective at reaching new donors. Our 6.9% processing fee is competitive with other fundraising platforms which also offer a suite of products.
Our campaign to encourage donors to cover the fee
Throughout the summer and leading into Give to the Max Day on November 17, GiveMN will continue to encourage donors to cover processing fees for your organization and raise awareness of the heroic work of nonprofits and schools across Minnesota. Second Harvest Heartland CEO Rob Zeaske is the first to be featured in our campaign.