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Is Givebutter Actually Free?

Published in Online Fundraising Platforms 3 mins read

Yes, Givebutter is free to use for organizations, meaning there are no platform fees, monthly subscriptions, or hidden costs to utilize its full suite of fundraising tools.

Understanding Givebutter's Free Model

Givebutter operates on a unique model that allows charities and nonprofits to use its extensive platform without incurring direct charges for the software itself. This "free" status is made possible by the generosity of donors who contribute optional tips during their checkout process.

How Donor Tips Make it Free

Givebutter's ability to remain free for organizations is directly supported by the 100% optional tips provided by donors. When a donor makes a contribution or registers for an event, they are given the option to add a small, voluntary tip to their transaction. These tips help cover the operational costs of the Givebutter platform, enabling them to offer their services without charging organizations for access to features like:

  • Unlimited campaigns
  • Live stream capabilities
  • Text-to-give
  • Event ticketing
  • CRM tools
  • And many more features

Transaction Processing Fees

While Givebutter's platform is free, it's important to differentiate between platform costs and payment processing fees. Like all online fundraising and e-commerce platforms, Givebutter utilizes third-party payment processors (such as Stripe or PayPal) to handle credit card and other financial transactions. These processors charge standard industry rates per transaction.

Typically, these payment processing fees are:

  • A small percentage of the transaction amount (e.g., 2.9%)
  • A flat fee per transaction (e.g., $0.30)

Organizations often have the option to:

  • Cover these fees themselves: The organization absorbs the processing fees, ensuring the donor's full intended donation goes directly to the cause.
  • Ask donors to cover fees: Donors are presented with an option to cover the processing fees in addition to their donation and optional tip, ensuring the organization receives the net amount they initially intended.

Key Benefits of Using Givebutter's Free Platform

Givebutter's free model provides significant advantages for nonprofits looking to maximize their fundraising efforts without budgetary constraints.

  • Cost-Effective Fundraising: Eliminate the need for budgeting platform fees, allowing more funds to go directly to your mission.
  • Full Feature Access: Gain access to all of Givebutter's robust fundraising tools and features without having to upgrade to a paid tier.
  • Scalability: Host unlimited campaigns and manage an unlimited number of team members, making it suitable for organizations of all sizes.
  • Transparency: The model clearly separates platform costs (covered by optional tips) from standard payment processing fees, providing clarity on where every dollar goes.

Here's a quick overview of the cost structure:

Cost Type Givebutter Platform Fees Payment Processing Fees
Direct Cost $0 Standard third-party rates (e.g., 2.9% + $0.30)
How It's Covered Optional donor tips Can be absorbed by organization or covered by donor
Subscription Required? No N/A

This model allows organizations to harness powerful fundraising technology without financial barriers, making it a truly accessible option for nonprofits.