Your donors give because they believe in your mission.
They want to help a family, support a child, care for a neighbor, or make something meaningful happen in their community. They trust your organization to put their gift to work.
And your team works hard for that trust. The phone calls. The events. The grant applications. The thank-you notes. The work it takes to keep people connected to what you do.
When you need more money for your programs, another fundraising push is often the first thing that comes to mind. There is also a place to look inside the donations you already receive: what it costs to accept them.
If your donors are using debit cards, your organization should understand how those gifts are being priced.
The same gift can carry different processing costs
Imagine two people each donate $100. One uses a debit card. The other uses a credit card. Your organization receives two gifts of the same size, but the underlying cost of processing them can be different. Debit transactions often carry lower fees than credit transactions.
Part of that cost is interchange: a fee paid to the bank that issued the card. Network fees, processor charges, and any donation-platform fees also affect what your organization ultimately pays.
Actual debit costs depend on the issuer, network, transaction amount, and how the payment is processed. Federal Reserve rules distinguish between debit issuers covered by interchange limits and those that qualify for exemptions. Your actual card mix matters.
The question is whether your pricing reflects the activity your nonprofit actually processes.
One rate leaves some questions unanswered
With blended pricing, an organization pays an agreed rate even when the underlying card-network costs differ. That can make budgeting simpler. It also means a lower-cost debit transaction may be charged at the same rate as a more expensive credit transaction.
A blended rate may make sense for your organization. The way to know is to compare the complete cost against your actual donation activity.
If debit costs less on a meaningful portion of your giving, how much of that difference reaches your nonprofit? How much stays with the provider? What services are included in what you pay?
Your organization deserves an answer in plain English and actual dollars.
Put those dollars back into the conversation about your mission
I think about what those dollars could do. Meals. Supplies. Scholarships. Staff time. Transportation. The things your organization is trying to fund every day.
For illustration, if a review identified $750 in monthly savings after all applicable costs, your organization would retain $9,000 over a year.
What could your nonprofit do with another $9,000?
Your numbers will depend on your volume, card mix, fees, and the payment tools you use. That is why the review needs to start with your statements.
Ask your provider these questions
- How much of our giving is paid by debit card versus credit card?
- How are those payments priced, and what is your markup?
- Are lower debit costs reflected in what we pay?
- What donation-platform, gateway, per-transaction, and monthly fees apply?
- What would we actually save after every cost involved in a change?
- How would a change affect our donation forms, recurring gifts, reporting, and staff?
Look beyond the main donation button, too. Events, memberships, program fees, and in-person giving may use different systems or pricing arrangements. They all deserve a place in the review.
Let’s look at what your organization is paying
At Mosaic, we start with two or three recent processing statements and a conversation about how your nonprofit accepts payments.
We look at your volume, debit activity, transaction sizes, pricing, and the fees around your processing. We also look at whether your setup can support more efficient debit processing and pricing that reflects it.
Any recommended change has to work with your donation platform, recurring giving, reporting, and staff. A useful proposal should explain the expected savings, the assumptions behind them, and any costs involved in getting there.
I don’t think a nonprofit should have to become an expert in card networks to understand where its money is going. That is part of what we are here to help explain.
Your team works hard to bring those donations in. Your donors trust you to use them well. Your processing costs deserve the same attention you give the rest of your budget.
Send Mosaic two or three recent statements. Let’s see what you are paying, whether there is a better fit, and how much more your mission could keep.
More mission. Less processing waste.