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The future of donations - How charities can use new payment methods to reduce costs

By - Alaina
03.03.21 03:59 PM

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.

Introducing BOPP

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.


What are the new ways to donate?
Imagine if a donor could simply scan a QR code and then choose their donation amount, they authorise the payment in their mobile banking app and the money goes securely and directly into your charity account with no transaction fees deducted at any point. You could print and display QR codes at your physical locations and during special events. Take the example below- a school PTA could display a QR code in a waiting room, TV screen or notice board for easy cash free donations.

Consider this...you email all your donors with a secure Paylink. When they click the link it opens their mobile banking app with a suggested donation amount and your bank details already included. They simply authorise the payment using their own banking app security and the payment is sent to your charity bank account instantly. You can even add a reference to the payment to link it back to a specific email campaign or share a Paylink via WhatsApp.
What does it cost?
This really is the best bit. There is just a flat fee of £10 a month (plus VAT) for unlimited transactions (subject to our generous fair use policy). This small charge is payable by organisations accepting payment. There are no fees charged when someone makes a payment. So whether you take one donation a day or hundreds, you only pay £10 a month to receive that money instantly. There is no minimum term, set up fees or cancellation fees.

In the example of a charity scenario, a tea and cake or coffee morning could see registered "members" be authorised to generate payment requests on behalf of the charity.

In this instance, the "host" can enter any amount that a donor wishes to pay and generate a QR code that can easily be scanned to effect payment. They can even send a Paylink via text.

The funds would be transmitted directly from the donors bank account to the verified and nominated bank account used by the charity.
Stop wasting precious donations on paying card processing fees.

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