Arizona Gives Day gets donation to waive processing fees on contributions, allowing nonprofits to keep more
A group of donors has provided funding to the Alliance of Arizona Nonprofits to waive payment processing fees normally paid by nonprofits participating in the Arizona Gives Day 24-hour online fundraising event, scheduled this year on Tuesday, April 7.
“What this means is more money goes directly to the nonprofits at a time that has never been more critical because of the impact of the COVID-19 pandemic,” said Alliance of Arizona Nonprofits CEO Kristen Merrifield. “Nonprofits have always had to cover the 2.1 percent fee charged by the payment processor. Thanks to the generosity of our donors, we’re able to waive that fee.”
Historically, 80 percent of donors have covered the remaining 5.2 percent technology and program fee charged on donations at checkout. If donors continue that trend or increase the percentage of those who donate the additional 5.2 percent, nonprofits will receive 100 percent of that donation since payment processing fees are waived. Merchant service providers sometimes do offer a zero-fee package, but there might still be some hidden charges acquired. When the processing fee does not come into the picture at all, that’s when the nonprofit can receive 100 percent of the amount donated. Some merchants could provide free payment processing for nonprofits which would help the organization leverage all of the funds. Otherwise, there is always the donor’s generosity to depend on!
Early giving for Arizona Gives Day began this week. Last week, the Alliance announced that it had added an Arizona Gives Day Emergency Relief Fund, giving donors the option to increase donations as an add-on at checkout or through direct donation by visiting www.azgives.org/aznonprofits.
All Emergency Relief Funds will be divided equally among Arizona Gives Day participants.
The Alliance also announced that it had re-opened registration for nonprofit organizations that had to cancel fundraisers or programs because of the coronavirus. The new registration deadline is Friday, March 27.
Since 2013, Arizona Gives Day has raised $17 million for Arizona nonprofits, including a record $3.6 million raised in 2019. In addition to funds raised through donations on Arizona Gives Day, nonprofits can win additional prize money from a $180,000 prize pool.
