There may be deductions from the gross donation amount, depending on where the donation was made and the form of payment. Virtually all donations are made via credit or debit card, and a 2.9% + $.30 per transaction fee covers the card processing costs charged to us.
In some cases, such as Evite donations, you may have the option to pay an optional and adjustable tip, which usually comes out the gross charge amount – so a $100 charge might end up recorded as a $95 donation and $5 tip. In this case there is no additional technology fee as described later in this article. We display the tip to you before you OK the charge. Because these tips flow immediately to a for-profit service provider, under IRS rules they are not tax deductible to you, the donor; not reported as part of the donation on the emailed tax receipt; and we do not report them as donations on our tax filings.
In other cases, there is a technology fee that Pledgeling Foundation pays to its service providers – this pays for payment processing and disbursement, including staff, infrastructure, customer support, office space, and more. It works as follows:
1) When the donation is made from a third party partner's site:
- you may have the option to "cover our costs," which increases the amount of the credit / debit card charge enough to pay the card processing and technology fees; or
- the partner site may pay the technology fee.
2) When the donation is made from a nonprofit's site or platform, for instance via a "widget" or our text-to-donate service, the nonprofit agrees to pay the 3% technology fee.