When it comes to giving online, many people assume that all fundraising platforms work the same way. You make a donation, and the money goes straight to the cause.
Simple, right? Unfortunately, that’s not always the case.
Behind the scenes, different platforms structure their costs in different ways, from payment processing fees to subscription models and optional contributions. These variations can affect how much ultimately reaches the cause.
These small deductions may not seem like much at first glance, but across thousands of donations, they can make a significant dent in the total support charities receive. That’s why understanding how fundraising platforms handle fees, and why lower fees truly matter, is essential for anyone who wants their generosity to make the biggest possible difference.
At GoodHub, we believe every pound should go further. In this blog, we will unpack how fundraising fees work, explore their real-world impact on causes, and show why choosing a lower-fee, transparent platform can make your giving smarter, fairer, and more effective.
Understanding fundraising platform fees
While fundraising platforms are an amazing way to spread awareness and raise money for worthy causes, it is important to recognise that not all platforms handle donations in the same way.
Behind every campaign sits a structure of fees, from platform charges to payment processing and service costs. These can quietly reduce the total amount that reaches the intended charity.
Knowing how these fees work helps both donors and fundraisers make informed choices, ensuring that more of every contribution goes exactly where it’s meant to.
- Percentage-based fees: A percentage of each donation is taken by the fundraising platform. Some platforms also charge a percentage on top of this for processing payments.
- Payment processing fees: These fees are standard costs for processing online financial transactions via credit cards, debit cards, or other payment gateways. These are typically charged by a third-party processor. These can either be automatically deducted from the donation before the funds are sent to the campaign, or some platforms give organisers the option to pass this cost on to the donors.
- Fixed fees: Some platforms charge a flat fee per donation or per campaign, regardless of the amount raised. While this can seem minimal per transaction, it can add up for campaigns receiving high volumes of small donations.
- Subscription fees: Instead of taking a percentage, some platforms require charities or fundraisers to pay a monthly or annual subscription to access premium tools, analytics, or priority support.
- Service charge: Additional fees for features such as advanced reporting, branded campaign pages, or enhanced support. These can be optional or automatically included in the fundraising platform’s pricing.
Even small fees can quickly accumulate. For example, on a campaign that raises £100,000, a 5% platform fee equates to £5,000, money that could have gone directly to a charity’s frontline work. Multiply that across thousands of donations or multiple campaigns, and the impact becomes even more significant.
Compared to cash collections, street fundraising, or door-to-door campaigns, which require staff, handling, banking, reconciliation, and carry both financial and reputational risks, digital fundraising platforms are among the most cost-effective and transparent ways for charities to raise money.
The real-world impact of high fees on charities
Even modest fees can make a big difference to the funds charities actually receive. For smaller organisations, losing even a few percent in fees can mean fewer meals served, fewer shelter nights funded, or fewer community projects supported. Across multiple campaigns, these small percentages add up to thousands of pounds. This could be enough to transform the reach and effectiveness of vital work.
Higher overall costs can prevent campaigns from reaching their fundraising target, reducing the funds that go to the intended cause.
High fees don’t just affect charities; they can also discourage both donors and fundraisers. Donors may hesitate to give when they learn part of their contribution is lost to costs, and fundraisers can feel disheartened seeing their efforts reduced by charges outside their control.
Over time, this can weaken trust and limit the reach of good causes, all because of avoidable fees.
Why transparency matters to donors
When pricing isn’t clear or easy to understand, donors can lose confidence in how their contribution is being used. While charities themselves decide how funds are spent, platforms play a crucial role in showing donors exactly what portion of their gift goes to charity and what, if any, is taken in fees.
That clarity builds confidence in the giving process.
Trust is one of the biggest drivers of donor behaviour. In 2025, 19% of people chose not to donate because they lacked trust in where their money was going. This reflects wider concerns about where donations ultimately go, not just fees, but it highlights the importance of openness at every step of the giving journey.
When fees or charges aren’t clearly explained, it can damage a platform’s credibility and add to a donor’s uncertainty. Transparency helps donors feel confident that their gift is being handled fairly and that the maximum amount possible is supporting the cause they care about
Fundraising platforms that are upfront about their fees and show precisely where each penny goes help build lasting trust. By being transparent, they empower donors to give with confidence and ensure that good causes receive the full benefit of people’s goodwill.
The benefits of lower-fee platforms
Transparency about platform’s fees is important. But lower-fee platforms are even better. They don’t just show where the money goes, they make sure more of it gets there.
Lower fees mean that a greater share of every donation reaches the intended charity or project, helping maximise real-world impact without taking away from the generosity of donors.
Here are a few key ways that lower-fee platforms make a real difference for both donors and the causes they support:
- Maximises donations for the cause: With lower transaction fees, more of each donation goes to the intended cause. This helps organisations and individuals maximise their fundraising goals.
- Keeps costs low for the fundraiser: Low-fee platforms significantly cut down on expenses compared to traditional methods that involve costly physical events and advertising.
- Enables greater accessibility: Digital fundraising makes donating accessible and convenient for a wider audience. When fees are low, the platform becomes even more accessible, encouraging more people to give and participate.
- Provides fast and easy setup: Online fundraising platforms allow for quick and easy campaign creation, with minimal technical fuss, fees, and administrative work. Most online platforms allow you to share your campaign straight to social media, helping to attract more supporters and increase donations.
- Allows for more predictable budgeting: With straightforward, transparent pricing, low-cost platforms make it easier for organisations to plan ahead and keep more of the funds they raise.
Online fundraising: How GoodHub keeps giving fair
At GoodHub, fairness and transparency are at the heart of everything we do. Our low-fee model ensures that more of every donation goes directly to the causes that matter most.
We don’t charge a registration or a subscription fee to raise funds. And there is no platform fee either. Instead, we offer supporters the option to add a small voluntary contribution to their donation or ticket purchase to cover our costs.
For charities, we keep fees simple and competitive. We charge just 1.9% + 20p per donation to cover secure payment processing, along with a small charge to collect and submit Gift Aid data on your behalf, all designed to ensure our pricing stays transparent, competitive and genuinely fair.
This approach means more money reaches the intended charity or project, while maintaining the transparency and trust that make GoodHub a fairer way to give.
A call to smarter giving
Every donation has the power to make a difference, but where and how you give matters just as much. Your fundraising journey should focus on maximising the impact of every donation, from the first support to the final contribution.
By choosing fundraising platforms consciously, donors can make sure their generosity goes further and has the greatest possible impact.
Lower fees don’t just mean more money for good causes, they also build greater trust, transparency, and long-term confidence in charitable giving. When you know your contribution is being used fairly and effectively, giving feels even more meaningful.
At GoodHub, we believe in smarter giving, where every penny counts and every act of generosity reaches the people and projects that need it most.
Explore the difference for yourself by finding and supporting a local charity on GoodHub today. Together, we can make fairer giving the new standard.