I am a fan of crowdfunding days. Days where we can all see what charities our friends are supporting, why they are supporting them, and be able to join them in their effort. I know crowdfunding and these national days of giving are not traditional fundraising, by any stretch of the imagination, however what an interesting concept!
Instead of focusing on the results, the best campaigns, or the graphics and text that were involved and successful during this last Giving Tuesday 2015, I wanted to talk about something else. Did you notice this year how many private companies were getting involved in charitable campaigns this year? Either thru their own Foundations or through partnerships they created, I noticed many more companies that wanted a piece of the good PR. Now, I am not trying to bash private companies for getting involved with local communities, I am just noting one area of the private sector that remained silent (to my knowledge)…
The online transaction/processing sector. Silent.
Now, isn’t it interesting to start thinking about all the online donations that come in to charities through the efforts on Giving Tuesday? How many of those donor dollars went to transaction or processing fee’s? On average you can go anywhere from 2%- as high as 8% collection. So, for numbers sake lets look at the final numbers from 2014:
$107.47 Mean Gift Size
1.08 Million Total Gifts
698,961 Total Donors
116.7 Million Dollars Raised
Let’s pretend the average transaction cost is around 4% for a donation (I think that is conservative, considering the different types of card fees, vendor fees, and per transaction cost-$.10-.$20/transaction sometimes)
If we took 4% out of the total dollar raised, that would be $4,668,000. Wait, let’s try that again…YES almost 5 million dollars! Wouldn’t that be great if all those fees were DONATED to ALL the organizations that received dollars on Giving Tuesday? Would that be great for one day to not collect fees?
I am sure that this concept would never work with processors out there. One day, all those profits? To charity? Crazy concept, right? But, hrm. We can dream big, right?