A healthy stream of donations is the lifeblood of every charity, but paying a fee each time a donation is received means working harder for every penny received. However, there is a new, game-changing way to take donations that is transforming how the charity sector receives funds.
The cost of accepting donations
When donations are received by a card payment, card processing fees are charged, usually as a percentage. These transaction costs mean the more donations received, the higher the fee that needs to be paid. In addition, if the charity is using a third party provider such as GoFundMe, there are often platform fees to pay as well.
For example, Just Giving charge a 2.9% fee plus 20p for each transaction when donating to a UK charity, as well as a £39 a month (+VAT) fee to use the platform for those raising £15,000 a year or more.
Cancer Research UK uses Giving Pages to collect donations which also incurs a fee from the card processing companies, for example PayPal UK charges 1.4% + 20p per donation.
Even if special rates are negotiated, many charities still pay what is now considered, way too much to receive donations.
BOPP is a new way to help charities take donations using secure Paylinks and QR codes. To request a donation, you need to download the app - no app is required for your donors to make a payment.
When you sign up to request payments through BOPP, your account details are verified by the bank. This is for enhanced security for payers, so they know that the account and organisation they are paying is genuine as it has been confirmed by the bank themselves.