Giving online? Keep an eye on those transaction rates!
More than half (56 per cent) of people donating to churches using online options choose to cover the transaction fee, according to research from CRE exhibitor iKnow Church.
By covering the transaction fee, the donor chooses to pay a little extra, meaning the charity will get 100 per cent of the donation – and it will cost the church nothing to process it.
‘During the pandemic, with offering baskets confined to the cupboards, many churches instigated online giving – often for the first time,’ explained iKnow Church’s Kyle Cottington. ‘People could now donate via the church website at any time, day or night. The money usually appeared in the church bank account within a few days. However, with online donations, there is the added consideration of the processing and platform fees involved with transaction rates. Some providers charge up to five per cent per donation.’
The transaction rate from iKnow Church is already one of the lowest, but by covering donation fees the average transaction rate from May to July 2022 was just 0.97 per cent per donation – with an average donation of £105.
‘Based on 56 per cent covering donation fees, a church which received 500 donations totalling £50,000 over the course of the year could save over £600, if the fee is two per cent,’ said Kyle. ‘Compared to a 3.6 per cent fee the saving is more than £1,300 per year – enough to buy a decent keyboard, noticeboard or a good supply of coffee for the congregation and community!’
Dave Hall author
About the author