If you’re a small nonprofit trying to grow, every dollar counts. And yet, many well-meaning organizations unknowingly lose 8–11% of every online donation—before that gift even hits their bank account.

It’s not because of fraud. It’s not because of chargebacks. It’s because of bloated, confusing platform fees that are baked into many “free” or “all-in-one” donation tools. But with the right setup, it doesn’t have to be this way.

This post walks through exactly how much small orgs lose to donation fees, what to watch for when choosing a giving platform, and how Solafund keeps more money in your mission—without sacrificing donor experience or transparency.

The Hidden Math of Platform Fees

Let’s run a simple example. You raise $5,000 online from individual donors this month. What happens next depends entirely on your platform.

Scenario A: A Typical All-in-One Giving Tool

• Stripe processing: 2.9% + $0.30 per transaction = ~$145 total
• Platform fee: 5% (sometimes more, depending on tier) = $250

Total cost: $395 (~7.9%)
Take-home: $4,605

Scenario B: A Crowdfunding-Style Platform With Optional Tips

• Processing still applies: 2.9% + $0.30 = ~$145
• Optional “tips” model: If donors don’t tip enough, platform keeps a default 6% anyway = $300

Total cost: $445 (~8.9%)
Take-home: $4,555

Scenario C: Solafund

• Stripe processing: 2.9% + $0.30 (no markup) = ~$145
• Flat platform fee: 1.5% = $75

Total cost: $220 (4.4%)
Take-home: $4,780

That’s a $175–$225 difference on just $5,000 raised. Multiply that across months, years, and campaigns—and you start to see the real cost of not switching.

Why So Many Orgs Still Overpay

The nonprofit tech world loves complexity. Fancy dashboards. Donor CRM integrations. “Smart” optimization tools. But too often, these features come wrapped in high fees, hidden costs, or unclear ownership terms.

Here’s what to watch out for:

• Sliding-scale fees: The more you raise, the more they take.
• “Free” plans with baked-in costs: You might not pay upfront, but donors are hit with upsells—or you quietly lose a percentage of every gift.
• Tip-based models: If donors don’t tip enough, your payout shrinks.

Worse, many platforms make it hard to calculate your real cost. That’s why Solafund built a clear, public Fee Calculator—so you can run your numbers before you commit.

Keep More. Do More.

Let’s say you’re a small nonprofit that brings in $60,000 a year through online giving. Here’s what that could look like across platforms:

• High-fee platform (8%): You lose $4,800
• Mid-fee platform (6.5%): You lose $3,900
• Solafund (4.4% total): Solafund’s fee is just $2,640

That’s an extra $1,200–$2,100 you could put toward real needs: groceries for families, supplies for students, hours for your part-time staff.

It’s not just about the savings—it’s about the freedom. When you keep more of what you raise, you’re not stuck fundraising out of scarcity. You can plan. Build. Grow.

No Gimmicks. Just Clean Math.

Solafund charges a flat 1.5% platform fee, and that’s it. Stripe charges the industry-standard 2.9% + $0.30 per transaction. That means you always know what you’re paying, and why.

There are no hidden markups. No surprise bills. And no platform tricks like “recommended donation add-ons” or “checkout boosts” that confuse your donors.

Plus, Solafund lets donors opt to cover the fees—so if they choose to, you can walk away with the full gift amount.

If you want to dig into how it compares to others in the space, check out the simple pricing breakdown here.

What Small Nonprofits Actually Need

You don’t need a $500/month CRM or custom-coded form. You need:

• A fast, mobile-friendly donation form
• Recurring giving built in
• Transparent fees
• Easy exports and ownership of your data

Solafund was built with that in mind. It’s for small teams with big goals, tired of overpaying for bloat they don’t use. Whether you’re just starting or moving off an expensive tool, you shouldn’t have to sacrifice simplicity to keep more of what you raise.

However, with Solafund, you still get the core power of a $500/month CRM and custom donation stack—without the bloated cost or complexity. You can tag donors, automate follow-ups, and track giving patterns, all inside a platform built for small teams who actually need results, not dashboards.

Make Every Dollar Count

Donors give to fund impact—not overhead. And while some administrative cost is expected, no one wants to hear that 10% of their gift disappeared into platform fees before it reached your mission.

By choosing a leaner, more transparent setup, you’re not just saving money—you’re honoring your donors’ trust. You’re showing them that every dollar matters. Because it does.

So if you’re raising money online, run the numbers. Run them again. Then ask: are we losing money just to look “professional”? Or is there a better way to accept donations that’s clean, modern, and built for us?

The answer might be simpler than you think. And it probably costs a lot less, too.