Why FundEasy Discontinued Donor Tipping in Our Peer-to-Peer Platform
At FundEasy, our mission is to empower ministries and organizations to achieve their God-given missions through effective fundraising. Recently, we made the decision to discontinue the option for donors to tip our platform in favor of a traditional platform fee. We want to share our reasons behind this change and how it ultimately benefits the ministries we serve.
1. Focusing on God-Given Missions
Our primary goal is to direct donor attention toward the important work being done by the organizations we serve.
When donors give, their focus should be on supporting the life-changing work these organizations are doing, not on the logistics of platform fees or tips. By eliminating the tipping option, we ensure that donations remain centered on the ministries’ efforts to make an impact.
Asking donors to tip the platform adds an additional ask, shifting the focus away from the primary mission and creating a moment of hesitation. Donors shouldn't have to weigh the decision of giving to a business versus supporting the cause they care deeply about. By removing that extra decision, we help keep the attention where it belongs: on the ministry's work and the lives being transformed. This change reinforces our commitment to fostering generosity that supports our customers’ God-given mission, making it easier for donors to give with a clear and focused purpose.
2. Reducing Friction in Giving
Creating a seamless giving experience is crucial for increasing donation rates. Asking donors to leave a tip introduces an additional decision point in the donation process. When a donor is prompted to make a second gift—this time to a business they weren’t planning on supporting—it can create confusion and friction. This added decision, on top of their initial gift to a cause they care about, can feel like an unexpected obligation and detract from their primary focus: supporting the mission of the ministry.
“Reducing friction in the donation process by removing unnecessary steps can increase donation conversion rates by up to 107%”
According to a report by NextAfter, reducing friction in the donation process by removing unnecessary steps can increase donation conversion rates by up to 107% (NextAfter). By implementing a straightforward platform fee, we streamline the donation process, making it easier for supporters to contribute without hesitation. This allows donors to focus solely on their contribution to the ministry, which ultimately results in more completed gifts and more support for our customers’ God-given missions.
3. Clarity and Predictability
We understand that clarity in fees is essential for effective fundraising. While the tipping model may offer flexibility, it often leads to uncertainty about revenue generation.
By adopting a fixed platform fee of just 4%, which is competitive amongst Peer-to-Peer Platforms—where fees can reach as high as 9%—we provide our users with a straightforward understanding of costs. This transparency allows ministries to plan their fundraising campaigns with confidence, maximizing their potential for success.
4. Enhanced User Experience
A fixed platform fee not only clarifies costs but also enhances the overall user experience. Donors appreciate knowing exactly what fees are involved, which fosters a sense of trust and transparency. By simplifying our fee structure, we create an environment where generosity can flourish, ultimately supporting the missions of the ministries we serve.
Research on donation transparency highlights that open fee structures significantly increase donor trust and, in turn, lead to more consistent and generous giving. For example, nonprofits that are transparent about their financial practices report up to a 53% better chance of receiving donations from informed donors. This clarity fosters stronger relationships between donors and organizations, ensuring that ministries can focus on their God-given missions without unnecessary obstacles.
5. Listening to Our Customers
At FundEasy, we prioritize listening to our users and understanding their needs. The decision to discontinue the tipping option was influenced by valuable feedback from our community, which highlighted confusion over the tipping model and expressed a desire for more straightforward fundraising features. We believe it's essential to develop solutions that genuinely bless our customers in their fundraising efforts, aligning with our shared values of generosity and service. By focusing on features that meet our customers' needs, we can better support their missions and enhance their overall fundraising experience.
Conclusion
The decision to discontinue the donor tipping option on FundEasy’s Peer-to-Peer platform is rooted in our dedication to supporting the ministries we serve. By keeping donors’ focus on our partners’ missions, reducing friction in giving, and providing a transparent fee structure, we are committed to helping organizations achieve their fundraising goals–so that they can accomplish their God-given missions.
Although many platforms use donor tipping as a way to generate revenue, we believe it's more important to support our partners' missions without interfering with their direct appeals. By doing so, we help preserve donor trust and keep the focus on the true impact of their contributions. We encourage ministries to carefully evaluate platforms that emphasize tipping over transparency, as this practice can undermine their fundraising efforts.
We believe that with this change, we can create an environment that fosters generosity and purpose-driven contributions. As we continue to evolve, our focus remains on empowering ministries to make a meaningful impact in their communities. Together, we can fulfill our calling and drive Kingdom change in the world.
If you'd like to learn more about our Peer-to-Peer, Attendance, or Crowdfunding products, please reach out! We'd love to chat.
Also, if you haven't joined already, we have an exclusive Facebook Group just for our customers! If you are a current FundEasy Customer and would like to join, go here to learn more and request to be added!
Crystal Hoag
This article was inspired by our customers and written to encourage your fundraising efforts. Although we work with nonprofits and events daily, our team members are not Event Consultants. We encourage you to consult with your event consultant, executive team, and/or affiliate organization before making any major changes to your events.
