How Do I Enable Giver Covered Fees?

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You can allow givers to cover processing fees as part of their gift from your Finance Team’s settings. With this option enabled, your givers can choose to cover the associated fees when they give. We see that some 72% of donors do when given the option!

Enable the option for givers to cover the processing fees by:

  1. Navigate to your Faithlife.com church’s group.

  2. Click your Finance Team in the Team menu.

  3. Expand Giving Configuration in the Admin menu and click Giving Features.

  4. Scroll down to the Giving Form Customization section and check the box next to Givers can cover transaction fees

Note: What portion of a donation made through Faithlife Giving is tax deductible? Learn more.

How are giver-covered fees calculated?

The processing fees are made of up two parts:

  1. Percentage fees (example: premium rate 2.49% Credit/ Debit)
  2. Per transaction costs (example: premium rate $.30)

When givers cover the fees associated with their gift, the processing fees apply to the full charge amount. The best way to understand the math is to start with the net amount the giver would like the church to receive and work backward from that amount to calculate the fees.

If we take the net (amount church receives) and gross (full charge amount), each gift follows this formula:

gross = ((net * percentage fees) + per transaction costs) / (1 - percentage fees)

In other words, the percentage applies to the full gift amount, not just the amount that will be net to the church. If that’s difficult to visualize, we’ve created some examples below to help.

Note: Learn more about how processing fees work when your church covers the fees.

 

Standard Plan Example

The standard plan includes a $0/mo subscription fee (i.e., your church pays nothing month-to-month) but slightly higher per-gift processing fees:

  • Percentage fees (2.99% for credit/debit or 1% for ACH/eCheck)
  • Per transaction costs ($.45 per gift)

Note: We recommend the standard plan if you receive under $7,500 in monthly online gifts.

If a giver wants to give $20, their total amount would depend on the chosen payment method (calculations shown below):

  • Credit/Debit total amount = $21.08
  • ACH/eCheck total amount = $20.66

Credit/Debit

  1. Determine the fee amount on the net gift.

    (($20 * .0299) + .45) = $1.048
  1. Assess the percentage fees on the net gift fee amount ($1.048 above).
    $1.048 / (1-.0299) = $1.08

    This represents the total fees applied.
  1. Add total fees to the net gift amount.
    $1.08 + $20 = $21.08 (credit/debit total amount)

ACH/eCheck

  1. Determine the fee amount on the net gift.

    (($20 * .01) + .45) = $0.65
  1. Assess the percentage fees on the net gift fee amount ($0.65 above).
    $0.65 / (1-.01) = $0.66

    This represents the total fees applied.
  1. Add total fees to the net gift amount.
    $0.66 + $20 = $20.66 (ACH/eCheck total amount)

 

Premium Plan Example

The premium plan includes a $44.99/mo subscription fee but lower per-gift processing fees:

  • Percentage fees (2.49% for credit/debit or 1% for ACH/eCheck)
  • Per transaction costs ($.30 per gift)

If a giver wants to give $20, their total amount would depend on the chosen payment method (calculations shown below):

  • Credit/Debit total amount = $20.82
  • ACH/eCheck total amount = $20.51

Credit/Debit

  1. Determine the fee amount on the net gift.

    (($20 * .0249) + .30) = $0.798
  1. Assess the percentage fees on the net gift fee amount ($0.798 above).
    $0.798 / (1-.0249) = $0.82

    This represents the total fees applied.
  1. Add total fees to the net gift amount.
    $0.82 + $20 = $20.82 (credit/debit total amount)

ACH/eCheck

  1. Determine the fee amount on the net gift.

    (($20 * .01) + .30) = $0.50
  1. Assess the percentage fees on the net gift fee amount ($0.50 above).
    $0.50 / (1-.01) = $0.51
    This represents the total fees applied.
  1. Add total fees to the net gift amount.
    $0.51 + $20 = $20.51 (ACH/eCheck total amount)
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