Donor-Covered Fees: How a Helpful Option Can Hurt Nonprofit and Church Giving

As a pastor, faith, or nonprofit leader, you care deeply about being a good steward of your organization’s resources. Whether you’re funding vital ministries, serving your community, or advancing a cause close to your heart — every dollar matters. 

It’s why you’ve likely found yourself in this familiar moment: sitting with your leadership team or finance committee, reviewing your online giving settings, and asking: 

“Should we offer donors the option to cover transaction fees?” 

At first glance, the answer seems obvious. If donors choose to cover these small processing fees, your organization keeps more of each gift — freeing up more funds for your mission. 

It feels like a win-win: good for the budget, and good for the donor’s sense of contribution. 

Many churches, places of worship, and nonprofits have adopted this feature for these very reasons, and with the best intentions. But what if this small, well-meaning change costs your organization far more than it saves? 

Why many organizations turn to donor-covered fees 

If you’ve ever sat at your desk late at night, staring at a budget spreadsheet or reviewing a year-end giving report, you’ve likely seen that small line item most people never notice: credit card processing fees. 

Online and mobile giving are a lifeline for today’s ministries and nonprofits — making it possible for supporters to give anytime, from anywhere. But this convenience comes at a price — a small percentage here, another few dollars there.  

Givelify fees include a small transaction fee per donation that covers the credit card processing fees charged by payment processors. With Givelify fees, you won’t encounter any additional charges from payment processors — everything is covered in one simple rate. 

And for church and nonprofit leaders managing tight budgets, those small amounts add up. They represent programs postponed, repairs delayed, and communities underserved. 

So, when you see the option to let donors cover credit card processing fees — and hear other organizations or platforms recommend it as a best practice — it feels like a thoughtful solution. A simple tweak with no real downside, and every reason to say “yes.” 

But let’s take a closer look at what really happens when donor-covered fees are introduced. And how this well-intentioned change can shift the giving experience in ways you can’t immediately see — ways that reduce generosity, not increase it. 

What the data shows: A cautionary case study 

In 2022, the American Cornerstone Institute (ACI) set out to better understand the real-world impact of offering a “donor covers fees” option on donation forms. 

They conducted a controlled experiment. One group of potential donors saw a simple donation form without any mention of processing fees. The other group saw the same form, but with the added option to cover transaction costs. 

The results were eye-opening: 

• Fewer donors completed their gifts 
  The most significant impact was a 38.5% decrease in conversion rates when donors were asked to cover processing fees. Put simply, more than a third of potential donors abandoned their gifts when asked about covering fees. 

• Average gift size increased slightly — but not enough 
  While roughly 60% of donors chose to cover the transaction fees, this only led to a modest 3% increase in the average gift amount. Unfortunately, this small bump wasn’t nearly enough to offset the drop in completed donations. 

• Overall donation revenue declined 
  Most importantly, the donor-covered fees group generated 20.5% less revenue. This meant that despite a slightly higher average gift, the organization lost significant revenue simply because fewer donors completed their gifts. 

This pattern has surfaced in multiple industry studies — not just ACI’s. KCBI, a large Christian radio station, conducted a similar experiment and found a nearly identical drop in conversion. Similarly, research from Fundraise Up suggests that donor-covered fee prompts can even reduce repeat giving among small-dollar donors. 

Why this happens: When giving feels like a transaction 

So why does this well-meaning feature lead to lost donations? 

Language and perception. 

When donors encounter phrases like “processing fees” or “cover costs,” their mindset subtly shifts. What began as an emotional, mission-driven act of generosity suddenly feels like a financial transaction — like checking out at an online store. 

This moment of disruption breaks the emotional flow of giving — turning joyful generosity into mental math. For many donors, this pause is enough to create hesitation or cause them to abandon their gift entirely. 

For churches and places of worship, especially, this shift away from mission and meaning can unintentionally reduce the very generosity these organizations work hard to inspire. 

What this means for your organization 

You decided to explore donor-covered fees because you care about stewarding every dollar wisely. But the research suggests that when it comes to giving, simplicity and emotional connection drive generosity. 

Considerations before implementing donor-covered fees 

Before adding this feature to your online giving form, keep these important principles in mind to help protect both your donor relationships and your organization’s impact: 

1. Keep the giving experience simple 

Minimize distractions or choices during the donation process. Every additional decision — like whether to cover fees — increases the risk of donors abandoning the gift. The more seamless the experience, the more likely supporters are to complete their donation. 

Givelify fees consist of a small transaction fee per donation. This single fee covers both secure credit card processing and the platform services that deliver Givelify’s award-winning mobile and online giving experience. With this all-in-one structure, your donors enjoy a seamless, reliable giving process, with no surprise or additional charges from third-party payment processors. 

2. Reinforce generosity, not transactions 

At the moment of giving, focus on the impact the donation will make — feeding families, funding ministries, advancing your cause — rather than the mechanics of the transaction. Keep the experience mission-centered, not money-centered. 

3. Test it yourself 

Every organization and audience is unique. Before making permanent changes, run a simple A/B test on your donation form to see how this option affects your supporters’ behavior. Real data will guide you to the best choice for your community. 

4. Communicate operational needs elsewhere 

If asking donors to cover fees is important to your organization, consider making that request in post-donation thank-you emails, newsletters, or annual stewardship reports — rather than interrupting the giving moment itself. 

Best practices when implementing donor-covered fees 

If you choose to offer this feature, applying these best practices can help minimize risks and maintain a positive giving experience for your donors: 

• Opt-in approach: Never pre-select the option for donors to cover fees. Allow them to actively choose, respecting their autonomy and reinforcing trust. 

• Transparent communication: Clearly explain what the transaction fees cover and how choosing to pay them helps the organization. Donors are more willing to contribute additional funds when they understand the purpose. 

• Reasonable fee amounts: Keep any additional fee requests modest — typically between 3–4% — to avoid discouraging donors. 

• Real-time calculation: Show the total donation amount (including any added processing fees) in real time to prevent surprises when donors complete their gifts. 

• Positive framing: Use donor-centric language that highlights the impact of their full gift. For example: “Help your gift go further by covering processing fees.” 

• Testing: Continue testing how this option affects donor behavior. Small adjustments in wording or placement can make a meaningful difference in results. Reach out to your Givelify Giving Success Coach if you’re interested in testing this feature for your congregation.

Donor-covered fees: The bottom line 

Leaders often consider donor-covered fees for good reasons — to protect their budget and stretch every gift. But as the evidence shows, this feature may quietly undermine the very generosity you depend on. 

In the moment of giving, supporters want to feel connected, inspired, and purposeful — not like they’re completing a purchase. Even small shifts in language and options can influence that feeling. 

Before you make any changes to your online giving form, pause and consider: 

Does this prompt invite people into my mission — or into a transaction? 

This small distinction can make a big difference for your organization, your donors, and your impact.