Did you know your givers can help cover the processing fees of their own gifts? Yes, there is a cost to process digital gifts, but you can enable the option for your givers to help!
Each Form you create has unique properties and customization options. The possibilities are endless, and based on the event type or payment choices, you can allow your givers, donors, or registrants to help cover the cost of processing a digital payment.
Here’s how to turn on this feature:
Navigate to the Forms tab in the left navigation pane, and select the Form you’d like to edit. Then, at the bottom of the page, click Form Properties, and select the Payment tab.
Check the box to Allow the use to help cover processing fee and make the following selections:
- Percentage amount of flat dollar
- Amount for ACH
- Amount for debit/credit cards
- Will each be required or optional?
Click OK to save property changes, then remember to Save and Publish form edits once you’ve completed any other edits.
What does this look like for the donor?
If enabled, a giver will notice a line item calculating the percentage or dollar amount before choosing to complete the gift. The rate will automatically adjust based on the payment method (ACH or debit/credit card) to reflect your elections in Form Properties.
Example: Optional percentage amount with 3% card processing fee.
Recommended for gift or donation forms.
Example: Required $5 for all submissions.
Recommended for event registration forms.
What fee amount should I choose for ACH and debit/credit cards?
It is important to remember that enabling the option for givers to help cover the processing fee does not eliminate the fee from occurring. The processing fee applies to the new, higher total of the transaction, and the church retains the net amount. To that end, each account may choose to apply a processing fee that best meets the financial goals, expense and budget planning, and individual culture.
How does this impact contribution records?
As mentioned above, if givers choose to add to a gift total to help cover processing costs, he or she is giving above and beyond the original gift amount. If giving to a tax-deductible fund, the giver receives charitable contribution credit for the total of their gift, including the additional amount given to help cover the cost of processing the transaction.
How is the processing fee reflected on reporting?
When givers choose to help cover processing fees by giving above the original gift amount, the record will appear on the Transactions tab.
In this example, Karen gave $2.00 to the Offering fund and chose to add her church’s selected percentage amount. Her total was $2.05.
Hover over the green check mark on the Transactions to see notation.
Consider creating a Fund to help with reporting
When making the processing fee selections within Form Properties, you can select which Fund the processing fees is related to for reporting purposes. Consider creating a Fund for “Donor Processing Fees” or “Processing Fee Expenses,” select that fund for the fee association, and simply choose not to enable that fund to display to givers on the giving form. In this way, the processing fee fund will be for backend reporting purposes only, and you can quickly and easily report on the total amount givers have helped lower your costs!