For a $100 donation on GoFundMe, $3.20 is typically deducted to cover payment processing fees. This means the recipient of the campaign will receive $96.80 from that specific $100 donation.
Understanding GoFundMe Fees
GoFundMe itself operates with a 0% platform fee for organizers, meaning they do not take a percentage of the funds raised as their own profit. However, donations are subject to standard payment processing fees, which are necessary for the safe and secure transfer of funds through credit card transactions and other payment methods. These fees are deducted directly from the donation total before the funds reach the campaign organizer.
Breakdown of Payment Processing Fees
The payment processing fee on GoFundMe is calculated as a combination of a percentage of the donation and a fixed amount per transaction. Specifically, it is 2.9% of the total donation plus $0.30.
Let's illustrate this with your $100 donation:
- Percentage Fee: 2.9% of $100 = $2.90
- Fixed Fee: $0.30
- Total Processing Fee: $2.90 + $0.30 = $3.20
This fee ensures that credit card payments are processed securely and funds are transferred efficiently.
What the Recipient Receives from a $100 Donation
To clearly show how a $100 donation is distributed, refer to the table below:
| Item | Amount |
|---|---|
| Initial Donation | $100.00 |
| Payment Processing Fee | -$3.20 |
| Net Amount Received | $96.80 |
Key Takeaways on GoFundMe Donations
- GoFundMe has a 0% platform fee for organizers, allowing more of the raised funds to go directly to the cause.
- The only deductions are standard payment processing fees, which cover the costs associated with financial transactions.
- These processing fees are calculated as 2.9% + $0.30 per transaction.
- For a $100 donation, $3.20 is the amount deducted for processing.
