Is "Zero-Fee" Fundraising Actually Free?
Many booster clubs, PTAs, and youth groups pick a fundraising platform because it advertises “$0 platform fees” or “zero-fee fundraising.” It sounds ideal. Every dollar raised goes to the kids, with nothing skimmed off the top.
But no software runs for free. A free platform still has a business model, and for the popular zero-fee platforms, that model is supporter tipping. The platform stays free to your group by asking your supporters to add a tip at checkout.
This guide explains how the tipping model works, what it costs the people checking out on your page, and when a tip prompt is the right fit.
Is zero-fee fundraising actually free?
Yes for your organization, but not for your supporters. The platform stays free by asking each donor to add a 15% to 17% tip on top of their order.
This is worth saying plainly, because “free” is not a lie. On the largest zero-fee platforms, your group really does keep 100% of what it raises, and the platform really does cover its own card-processing costs. The catch is where the money comes from: the people checking out on your page fund the software.
So the honest question is not “is it free?” It is “who pays, and how do they feel about it?”
How the supporter-tipping model works
When you turn on a zero-fee platform, it covers its costs by showing your supporters a pre-selected tip, usually 15% to 17%, on top of what they are already paying you.
A few details matter here:
- The tip is pre-selected. During checkout, a dropdown or line item is already set to a suggested amount. The supporter has to notice it and change it to opt out.
- The percentage scales with the order. Orders under about $100 are shown the higher rate (around 17%); larger ones a bit less (around 15%).
- Some platforms won’t let you turn it off. Where the tip is the platform’s only revenue, your group often cannot customize or remove the prompt. Others let you switch it off, usually by moving to a flat platform fee instead.
- Opting out takes work. A supporter who does not want to tip often has to change or clear the suggested amount themselves, and many leave it in place.
None of this is hidden. The tip is disclosed. But a prompt that is defaulted on, hard to remove, and shown to your supporters instead of you is a real design choice, and it lands on your supporters, not your group.
What the tip costs your supporters
On a $30 order, a 15% to 17% tip adds about $5 that your supporter pays to the platform, on top of the $30 they gave you.
That adds up as orders grow:
| Supporter buys | Pre-set tip they are asked to add |
|---|---|
| $30 spirit wear shirt | $5.10 |
| $50 wreath | $8.50 |
| $500 sponsor banner | $75.00 |
Orders under about $100 pay the higher rate, so the $30 shirt and $50 wreath both land near 17%; the $500 banner drops to 15%. For a parent buying a shirt or a wreath, an unexpected $5 to $8 added to cover software costs reads as a surcharge on a purchase. A $500 sponsorship gets hit hardest: a $75 add-on is enough to make the sponsor pause, or pay by check instead and delay your funds.
A flat-fee platform takes a different path. UnitTally, for example, never shows your supporters a tip prompt. It charges one small, capped platform fee on top of Stripe’s processing. An optional “Cover the Fees” checkbox (off by default) lets a supporter cover both fees, about $2.32 on a $30 order, so nearly all of the listed price reaches your group. That is a predictable, disclosed cost of a couple of dollars rather than a $5 percentage tip. On cash or check sales there is no platform fee at all.
When a tip prompt is the right fit
Use a tipping platform for pure donation drives, where supporters understand they are chipping in to keep the tool running and there is no product changing hands. In that setting, a tip feels reasonable.
Use a flat-fee platform for product sales like spirit wear, wreaths, or cookie dough. When someone is buying a specific item at a set price, a percentage tip on top reads as a surcharge, and it is exactly the moment you want checkout to feel clean.
Frequently asked questions
Is Zeffy actually free?
Yes, Zeffy is free to your organization. It funds itself with a voluntary tip it asks your donors to add at checkout. The default is typically around 17% on smaller donations and around 15% on larger ones, and about 60% of donors leave it. Organizations cannot customize the prompt, and a donor who wants to skip it has to change or clear the suggested amount themselves.
How does Givebutter make money, and how do its fees compare?
Givebutter is also free to your group when donor tips are on. It prompts supporters to tip and to cover processing, and its “Givebutter Guarantee” covers any processing fee the supporter opts not to cover. If you turn tips off, Givebutter charges a flat 3% platform fee, uncapped, plus processing.
Do organizations pay anything on these platforms?
On the tips-on path, there is no platform fee. The model works because your supporters cover it, so the tradeoff shows up in the checkout experience rather than your group’s bottom line. That is why the decision comes down to what you are selling and how checkout feels to your supporters.
Run the math for your fundraiser
Our savings calculator compares a percentage platform against a flat, capped fee for your own order size, including the cash or check option at $0, so you can see what actually reaches your group.
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