Subsplash Giving gives your donors the option to pay the processing fees that your organization would otherwise incur. With the click of a button, your donors can now opt-in to increase the size of their gift to cover these processing fees!
This new tool provides a simple way to encourage increased generosity and to help you put more money where it makes the biggest impact, your mission!
At this time, donor-covered fees are not available for Subsplash Payments
Configuring Donor-covered Fees
Within your Subsplash Dashboard, navigate to Giving and select Settings. From here you will see two options that relate to Donor-covered Fees.
Donors Can Help Cover Fees
Once enabled, your donors will be prompted with an option to cover processing fees upon submitting their gift.
Within the Giving Settings, locate the section titled Donors can help cover fees
Toggle the setting On so that it is blue.
Default Covered Fees
When this feature is toggled on, the fee will automatically be added to the donor's total upon checkout. The donor can deselect the coverage option if desired.
Within the Giving Settings, locate the section titled Donors can help cover fees
Toggle the setting On so that it is blue.
Default covered fees when toggled on means that the donation has added the fee when checking out, which the donor can deselect if desired.
How Donor-covered Fees Work
Any time a gift is given, Subsplash withholds the fee amount from that gift before depositing the funds into your bank account. This is also the case for gifts that have had the fees covered by the donor. However, when a donor covers a processing fee, they are instead adding the total fee amount to their gift so that your net amount received is the total amount of the intended gift. We'll break down these fee amounts below.
Processing Rates
To know what amounts your donors are being charged, it's important to first refresh yourself on what the processing rates are for your organization.
Standalone App Clients:
Cards - 2.3% + $0.30 transaction fee
ACH - 1% (no transaction fee)
TCA, Web, & Giving-only Clients:
Cards - 2.99% + $0.30 transaction fee
ACH - 1% (no transaction fee)
* All fees are rounded to the nearest cent
Calculations For Donor-covered Fees
It's important to us that our fees are transparent and accessible. For that reason, we've outlined the very calculations we use to determine your donor's fees. Feel free to test this out on some of your own transactions!
G = Gross Gift Amount (the amount the donor gives)
N = Net Gift Amount (the amount deposited into your bank account)
Donor Covers Fees w/ACH: G = N ÷ (1 - .01)
Donor Covers Fees w/Card (at 2.3%): G = (N + .30) ÷ (1 - .023)
Donor Covers Fees w/Card (at 2.99%): G = (N + .30) ÷ (1 - .0299)
Fees are always determined by the gross amount of the gift. This means that the donor's fee will be determined by the increased gross amount, resulting in a slightly higher fee.
Examples
A donor enters a gift amount of $100 and chooses to pay with their bank account (ACH). The donor does not choose to cover the fees, so they are charged $100 and your organization receives the net amount of $99 ($100 - $1).
Alternatively...
A donor enters a gift amount of $100 and chooses to pay with their bank account (ACH). This time the donor does choose to cover the fees! In this case, the donor is charged $101.01 and your organization receives the net amount of $100 ($101.01 - $1.01).
How much of the gift is tax-deductible?
Regardless of whether a donor covers the fees or not, they must always be credited for the full amount that they pay. Every dollar that leaves a donor's bank when giving through Subsplash Giving is legally considered a donation towards your organization and should be counted as such.
Donor-covered Fees & GrowCurve
Every dollar donated, whether the fees are covered or not, is still counted toward lowering your GrowCurve rate. When a donor covers your processing fees, your effective rate is 0%. When they don’t, your GrowCurve rate is applied and you get a rebate for that gift!
How Does This Affect My Transfers?
Your transfers will still show all of the fees that have been incurred. However, with Donor-covered Fees, our system will show you how much of those fees were covered by your donors, down to the percentage!
In addition, you'll now see a mark for every gift that has been covered in the transactions list: