Givebutter vs. Donorbox vs. Zeffy: True Cost of 'Free' Donation Tools

On this page 8 sections

1. How Donation Platforms Make Money: Donation Software Fees vs. Donor Tips
2. Givebutter vs. Donorbox vs. Zeffy: What a $100 Gift Nets
3. Recurring Giving, Peer-to-Peer and Event Features
4. Donor Tip Model Fees and Checkout Friction
5. Payout Timing and Who Holds the Merchant Account
6. Exporting Donor Data If You Ever Switch
7. Which Is the Best Donation Platform for Nonprofits of Your Size
8. Next Steps

Key takeaways

• "Free" donation tools still have costs. Someone pays card processing, either your nonprofit, your donor or the platform through donor tips.
• To find what a $100 gift nets, add up the platform fee, the processing fee and any fee-coverage or tip option. Use each platform's current published terms.
• Tip prompts can add checkout friction and donor confusion, so review defaults and receipt wording carefully.
• Before committing, confirm who holds the merchant account, how fast payouts arrive and whether recurring donors can move with you.

Nonprofits comparing Givebutter vs. Donorbox vs. Zeffy usually start with one question: which one is actually free? The honest answer is that card processing always costs money. What changes is who pays it: your organization, your donor, or the platform, funded by optional tips that donors add at checkout. This guide explains how each pricing model works and shows you how to calculate what a $100 gift nets. It also covers recurring giving, payouts and data portability, so you can pick a tool that fits your size and your donors.

A note on numbers: Platform pricing changes, and plans differ by feature tier. We don't quote specific rates here. Every dollar figure below is illustrative. Check each platform's current pricing page and terms before you decide.

How Donation Platforms Make Money: Donation Software Fees vs. Donor Tips

Online fundraising tools generally use one of three revenue models. Many platforms mix them, or let you choose between them.

• Platform fee model. The platform takes a percentage of each donation, a monthly subscription fee, or both. Card processing fees are charged separately on top.
• Donor tip model. The platform charges the nonprofit little or no platform fee. Instead, it asks donors to add a voluntary contribution to the platform at checkout. Depending on the platform, processing fees may still pass through to the nonprofit or may be absorbed by the platform.
• Donor fee coverage. Separate from tips, many tools let donors choose to cover the processing fee so the nonprofit receives closer to the full gift. Our article on asking donors to cover processing fees covers how well this works and the rules to watch.

Here is how the three platforms generally line up. Treat this as a starting point, not a rate sheet.

The pattern is simple. A lower fee to the nonprofit usually means more of the cost shifts to the donor's checkout experience.

Givebutter vs. Donorbox vs. Zeffy: What a $100 Gift Nets

To compare fairly, run the same gift through each platform's current terms with this worksheet:

1. Start with the gift amount. Use $100.
2. Subtract the platform fee. This may be a percentage, zero, or a share of a monthly subscription spread across your gifts.
3. Subtract processing fees. These are usually a percentage plus a fixed per-transaction amount, unless the platform absorbs them.
4. Add back donor fee coverage, if the donor opted in.
5. Ignore the tip. Tips go to the platform, not to you, so they never increase your net. They do raise the donor's total charge.

Illustrative Scenarios

The numbers below are made up to show how the math works. They are not any platform's actual rates.

Two lessons come out of this exercise:

• Your net is only part of the cost. In scenarios B, C and D, the donor pays more than $100. If tips or fee coverage reduce how often people give, or how much, the "free" option can cost you in lost giving.
• Fixed per-transaction fees hit small gifts hardest. Run the worksheet at $10 and $25 as well as $100, especially if you rely on small monthly gifts.

If you process enough volume to run your own merchant account, also look into charity-specific card pricing. Our guide to nonprofit credit card processing rates and charity discounts explains how qualifying organizations approach this.

Recurring Giving, Peer-to-Peer and Event Features

All three platforms support core online giving, and each offers some mix of recurring donations, campaign pages and event tools. The differences show up in depth and in which plan tier unlocks each feature. When you compare, check:

• Recurring gifts: Can donors manage or update their own card? Does the platform retry failed charges and send dunning emails? Failed recurring payments quietly drain monthly programs. Our guide to fixing failed recurring gifts covers what to look for.
• Peer-to-peer fundraising: Can supporters create personal pages that roll up to a team or campaign total? Are leaderboards included or paid?
• Events and ticketing: Can you sell tickets, run auctions or raffles, and check guests in from a phone?
• In-person giving: If you take cards at galas, walks or church services, find out which card readers or tap-to-pay options the platform supports. You can also use separate mobile card terminals for events.
• Text-to-give and memberships: These are useful for some organizations and irrelevant to others. Don't pay for features you won't use.

Raffles and auctions can raise state charitable gaming questions. Rules vary by state, so confirm with a qualified professional before you launch one.

Donor Tip Model Fees and Checkout Friction

Tip prompts are where "free" donation platforms get the most scrutiny. Common concerns:

• Pre-selected tip amounts. A default tip that donors must actively lower can feel like a hidden charge. Some donors miss it and are surprised by their statement.
• Confusion about where the money goes. Donors may assume the tip supports your mission. Clear wording that the contribution goes to the platform protects trust.
• Receipt and tax wording. A tip to a for-profit platform is not a gift to your charity. Your receipts should show the donation amount separately. Confirm how your platform handles this, and check receipt requirements with your accountant.
• Extra steps. Every added screen or decision is a chance for a donor to abandon the gift, especially on mobile.

Before you launch, practical steps help:

1. Make a test donation on a phone and a laptop, just as a donor would.
2. Check whether you can change the default tip, or set it to zero, and whether that affects your pricing.
3. Read the confirmation email and receipt as a first-time donor would.
4. Ask a few board members or volunteers to give through the page and tell you what confused them.

Also watch your donation form for abuse. Public, low-friction forms attract fraudsters testing stolen cards. See how to stop card testing on your donation page.

Payout Timing and Who Holds the Merchant Account

Behind every donation tool is a payment processor. Some platforms have you connect your own processor account. Donorbox, for example, has relied on connecting accounts such as Stripe or PayPal. Other platforms process payments through their own arrangements and send payouts to your bank. Ask each one:

• Whose account are we on? If you're on a shared or platform-managed account, your funds and your relationship depend on the platform's policies.
• How fast do payouts arrive? Ask about standard timing, any delays for new accounts, and whether large or unusual gifts can trigger reviews or holds.
• Who handles disputes? Learn how chargebacks are communicated and what documentation you need to respond.
• What happens if the account is paused? Know the process before your year-end campaign, not during it.

Larger organizations sometimes separate the donation form from processing. They use their own merchant account with a payment gateway such as Authorize.net or NMI, plus a virtual terminal for phone and mail-in gifts. This gives you more control over pricing and payouts, though you may lose some all-in-one fundraising features.

Exporting Donor Data If You Ever Switch

Switching platforms is mostly a data problem. Confirm these points before you sign up:

• Donor records: Can you export names, contact details, gift history and campaign tags to CSV at any time?
• Recurring donors: This is the hard part. Card details are stored as tokens with the processor, not in your spreadsheet. Moving active monthly donors may require a token migration between processors, which isn't always available. Without one, donors must re-enter their cards, and some won't.
• Integrations: Does the tool sync with your accounting software or CRM, so your records don't live in only one place?
• Account ownership: If you connected your own processor account, your payment history may stay with you even if you leave the platform.

Ask each platform directly how it handles recurring donor migration, both in and out.

Which Is the Best Donation Platform for Nonprofits of Your Size

There is no single winner. Match the model to your situation.

Next Steps

1. Pull last year's gift data and note your typical gift sizes and the share that is recurring.
2. Run the $100 worksheet, plus your smallest common gift, through each platform's current published terms.
3. Make test donations on mobile and review every receipt.
4. Confirm payout timing, account ownership and recurring donor portability in writing.

If your volume has outgrown all-in-one tools, MannyPay offers merchant accounts, gateways and card terminals for online and in-person acceptance. Request a free processing quote, and a MannyPay specialist will respond within one business day to review your options.

This article is general information, not legal, tax or financial advice. Confirm platform terms with each provider, and check tax and fundraising rules with a qualified professional.

ME

About the author

MannyPay Editorial Team

Beyond the Swipe's editorial desk researches the publication's guides and news and cites its sources in every article. Articles reviewed by a named MannyPay editor carry that editor's byline.

This article is for general educational purposes and is not legal, tax or financial advice. Card network rules and state laws change; confirm current requirements for your business.