0% platform fees sounds free, but who ends up paying the bill?
Some crowdfunding platforms charge no platform fees, but ask donors for an extra contribution at checkout. That is known as the tipping model. Here is why we deliberately do not use it.
Raising money online should be simple and clear. For the person starting a fundraiser, but certainly also for the person who wants to donate.
Yet some crowdfunding platforms use a model in which the organiser pays no platform fees, while donors are asked at checkout to give an extra contribution to the platform. This is known as the tipping model.
At first sight that sounds appealing. After all, starting a fundraiser at 0% platform fees looks free. But in the end, the costs of running a crowdfunding platform have to be paid somewhere.
That is why we at Steunactie deliberately choose a different model. We make clear in advance which costs there are, and we do not ask donors to add a tip for Steunactie at checkout.
01A donor comes to support your fundraiser
Someone who lands on a donation page usually has one clear goal: helping a person, a family, an association, a foundation or an initiative. The donor chooses an amount and expects the donation process to be as simple as possible from there.
When, just before completing the payment, they are suddenly asked to give an extra contribution to the platform as well, that moment changes. The attention shifts away from the cause someone wanted to give to, towards the funding of the platform itself.
That can feel confusing or intrusive. The giver intended to donate €25 to a fundraiser, and is then asked how much they would like to contribute to the platform on top of that. To some donors, that simply feels like being asked for money twice.
We believe the moment of giving should be about one thing as much as possible: the fundraiser someone wants to support.
Steunactie's starting point
02Fewer choices make giving easier
Every extra step during an online payment can create hesitation.
How much do I want to donate? Which payment method do I use? Do I want my name shown? And then on top of that: how much extra do I want to give to the platform? The more choices someone has to make, the greater the chance the donation process becomes needlessly complicated.
An extra tipping choice also creates doubt. Do I give 5%, 10%, 15% or nothing at all? And does choosing zero even feel socially acceptable when the platform already suggests a higher percentage? That is exactly the kind of friction you would rather avoid in a donation process.
So at Steunactie we prefer to keep it clear. You choose the amount you want to give to the fundraiser and you pay that amount. No further request appears asking you to support Steunactie financially as well.
030% platform fees does not automatically mean free
This is perhaps the most important point.
When a crowdfunding platform advertises 0% platform fees, that does not automatically mean using the platform costs nothing. The costs simply move elsewhere. With a tipping model they end up with the donor, who is asked at checkout to give an extra contribution to the platform.
That makes 0% mainly an attractive marketing figure, rather than a genuinely free model. So always look at the full business model. Ask yourself, for example:
Are transaction costs charged?
Is an extra contribution requested during the donation?
Is that contribution set by default?
Can the donor easily adjust or remove it?
Is it clear which part goes to the fundraiser and which part to the platform?
Only when you look at the whole payment process can you compare crowdfunding platforms fairly.
04No surprise at the checkout
Transparency matters in every online payment. A donor should know how much they are paying and what for.
With some tipping models, a suggested contribution to the platform is already filled in. That can mean a donor does not immediately realise that part of the total amount is not intended for the fundraiser, but for the platform.
When someone only discovers afterwards that more was charged than expected, it can leave a sense of being misled. That in turn can lead to irritation, refund requests or even a full reversal of the donation.
If you want to donate €50 to a fundraiser, it should be clear what you are giving and which costs come with using the platform. No surprise at the checkout.
05Where does my money actually go?
Crowdfunding involves different kinds of costs. There are costs for the platform itself, and costs for processing payments through payment providers. For a donor, that distinction is not always obvious.
When an extra tip is requested on top of that, even more confusion can arise. A giver might think that the extra contribution also goes to the organiser, while in reality it is intended for the platform. That can damage trust.
A transparent cost model prevents that confusion. This is why we at Steunactie are clear about how our rates are built up and what the costs are used for.
06Clarity matters for the organiser too
When you start a fundraiser, you often ask people close to you for help. You share your fundraiser with family, friends, colleagues, neighbours and others you know. That is precisely why you want their experience of donating to be pleasant and trustworthy.
An unexpected request for an extra contribution to the platform can reflect on your fundraiser as well. After all, you chose the platform on which people are asked to donate.
If friends or family get the feeling that they are being approached for money once more at the end of the donation process, that can feel uncomfortable. In the worst case it looks as though you chose a platform that tries to squeeze your network, while you thought you were choosing a free solution.
That is a risk we want to avoid at Steunactie. The donor supports your fundraiser. Steunactie facilitates that process.
07Running a crowdfunding platform simply costs money
Maintaining a professional crowdfunding platform costs money. Think of:
- technical infrastructure
- security
- payment processing
- customer service
- platform development
- administration
- payouts
- support for organisers
So a platform that says it charges 0% platform fees has to fund those costs in another way. The tipping model is one way of doing that.
At Steunactie we take a different approach. We communicate our costs in advance and settle them according to our regular rate model. That means we do not have to come back to the giver for an extra contribution during the donation. We find that clearer for the organiser and the donor alike.
Start a fundraiser with no upfront costs
At Steunactie you pay nothing to get started. Costs are only deducted once donations are actually made, with no hidden tip during checkout.
Start your fundraiserNo extra tip, just clear costs
We believe transparency matters more than an attractive percentage at the top of a pricing page. That is why we choose to make clear to organisers and donors in advance how Steunactie is paid.
Starting a fundraiser is free. Costs are only deducted once donations are actually made. With us, after choosing their donation amount, the donor does not also have to decide how much to give to Steunactie.
No preset tip. No extra choice at the end of the payment. No surprise at the checkout.
That keeps the giving experience focused on what it is ultimately about: people who want to help other people, charities and initiatives. For us, that is a deliberate choice.
This article is partly based on points raised about the tipping model and extra donor contributions, as described in a background piece on crowdfunding platforms.
Steunactie Editorial
We write about giving, crowdfunding and how donation platforms work, so that you can make an informed choice about how and to whom you give.
