Unveiling Classy Hidden Fees

Fundraiser events are more than just an opportunity to gather donations—they represent hope, unity, and the power of collective action. In today’s digital era, the significance of fundraising events is amplified by innovative platforms that make it easier than ever to connect with donors. However, not all platforms are created equal. Understanding the hidden fees and true costs of fundraising software is essential to making an informed purchase decision that maximizes impact and transparency.

This guide compares Classy fundraising platform to the powerful and transparent Event.Gives, helping nonprofits make the best choice for their fundraising needs.

Introduction to Classy's Platform and Pricing: Hidden Fees Examples

Classy is a popular fundraising platform tailored for nonprofits running online campaigns. As part of the GoFundMe family, it offers tools for peer-to-peer fundraising, event management, and donor engagement. While Classy integrates with third-party apps like PayPal, Salesforce, and Mailchimp, its pricing structure can be complex, often including junk fees that are not immediately apparent.

Nonprofits often end up paying more due to hidden costs, which can significantly impact their budgeting and financial planning.

Classy’s Professional Plan costs $299 per month, with additional fees, including:

• 4% transaction fee on all donations.
• 2.2% platform fee per transaction.
• Potential payment processor fees up to 3.2%.

The lack of upfront transparency about these costs can create financial ambiguity for nonprofits, especially smaller organizations.

Understanding Fundraising Platform Fees

Navigating the landscape of fundraising platform fees can be daunting for nonprofits, but understanding these costs is crucial for maximizing your fundraising efforts. Here are some key points to consider:

• Payment Processing Fees: These are the charges levied by payment processors like Stripe or PayPal for handling donations. Typically, these fees range from 2.9% + $0.30 per transaction. It’s important to factor in these costs when planning your fundraising campaigns.
• Platform Fees: Fundraising platforms such as Classy or Paybee charge a fee for using their services. These fees can vary widely, generally ranging from 2% to 5% of the donation amount. Knowing these fees upfront can help you budget more effectively.
• Transaction Fees: Both the payment processor and the fundraising platform may charge transaction fees. These can range from 2.9% + $0.30 to 4.9% + $0.30 per transaction. Understanding these fees can help you avoid unexpected costs.
• Monthly Fees: Some platforms charge a monthly fee for access to their services, which can range from $25 to $100 per month. This is an important consideration for nonprofits with limited budgets.
• Hidden Fees: Be wary of hidden fees such as setup fees, cancellation fees, or charges for additional services. These can add up quickly and impact your overall fundraising revenue.

By understanding these different types of fees, you can make more informed decisions and ensure that more of your funds go directly to your cause.

Event.Gives: Transparent Pricing with Robust Features

Unlike Classy, Event.Gives stands out for its transparent pricing and ease of use. Unlike some other platforms that add extra charges to cover costs, Event.Gives does not include additional service fees. Designed for nonprofits hosting events and campaigns of all sizes, Event.Gives offers comprehensive tools for event management, donor engagement, and payment processing—all without the confusion of hidden fees.

Event.Gives** Pricing Highlights:**

• Platform Fee: 4.5% per transaction.
• Payment processing fee: 3.5% per transaction.
• No subscription required—pay only when you use the platform.
• The best part- you can pass your fees on to your donors making the platform free for your organization.
• Simple, event-focused pricing tailored to your needs.
• Built-in tools for live-streamed, hybrid, and in-person events.

Event.Gives ensures that every dollar donated works harder for your cause while empowering you with professional-grade tools that are easy to use and scalable.

Breaking Down Hidden Fees in Fundraising

When evaluating platforms like Classy, it’s crucial to understand the true costs of fundraising, including:

A good example of hidden fees is a $29 overdraft fee for customers with a minor account shortfall, which exemplifies the unfairness of such charges.

Many banks impose fees for property inspections during the loan application review process, which can catch potential homebuyers off guard.

1. Payment Processing Fees

Every donation processed incurs fees from payment processors like Stripe. For example, Stripe charges 2.2% + $0.30 per transaction for nonprofits. Depending on the platform, these costs can vary based on the type of payment method (credit card, ACH, digital wallet) and the processor used. The Biden administration has initiated efforts to regulate payment processing fees and enhance consumer awareness about these charges.

2. Platform Fees

Fundraising platforms may add platform fees on top of payment processing charges. These fees can be structured as:

• Flat Fees: A fixed monthly or annual cost, regardless of funds raised.
• Variable Fees: A percentage of each donation, often allowing donors to cover the cost.
• Tipping Models: Some platforms rely on donors “tipping” to cover platform costs, which can lead to confusion and additional costs.

Various platforms, like Classy, support nonprofits in managing their online fundraising efforts, integrating fundraising tools, and addressing associated fees.

3. Hidden Charges

Certain platforms, like Classy, may include additional costs that aren’t immediately clear, such as:

• Chargebacks or refunds.
• Fraud monitoring tools.
• Higher processing rates for specific payment types (e.g., American Express).
• Monthly compliance or subscription fees.

Platforms like Classy also facilitate fundraising events, enhancing user experience and driving donations and participation, but it's important to be aware of the rules and potential hidden charges involved.

Avoiding Hidden Fees

Hidden fees can significantly impact more revenue and your nonprofit’s bottom line, so it’s essential to take steps to avoid them. Here are some practical tips:

• Read the Fine Print: Before committing to a fundraising platform, carefully read the terms and conditions to understand all associated fees. This can help you avoid unexpected costs down the line.
• Ask Questions: If any fees are unclear, don’t hesitate to ask the platform directly. They should provide a clear breakdown of all costs involved.
• Compare Prices: Take the time to compare different fundraising platforms to ensure you’re getting the best deal. This can help you find a platform that offers the best value for your needs.
• Negotiate: If you’re a large nonprofit or planning a significant fundraising campaign, you may have the leverage to negotiate lower fees or eliminate certain charges altogether.
• Use a Transparent Fundraising Platform: Opt for platforms that are upfront about their fees and don’t include hidden costs. Transparency can save you money and build trust with your donors.

By following these tips, you can avoid hidden fees and ensure that more of your fundraising revenue goes directly to your cause.

Why Choose Event.Gives for Your Fundraising Events?

Event.Gives eliminates confusion with transparent, straightforward pricing. Unlike platforms that bury costs in fine print, Event.Gives ensures that you and your donors know exactly where every dollar you spend goes. Event.Gives also supports online fundraising efforts with its integrated tools. Additional benefits include:

• Customizable Event Pages: Tailor your campaign to reflect your nonprofit’s mission and brand.
• Peer to Peer Events: Maximize your fundraising efforts by having your constituents share for you!
• Integrated Tools: Manage ticketing, auctions, and donations from one seamless platform.
• Support for Donor-Covered Fees: Enable donors to help offset processing fees, increasing the net amount raised.
• Advanced Security: Protect against fraudulent transactions with robust authentication tools.

The Bottom Line

When choosing a fundraising platform, transparency, and affordability are key. While Classy offers robust features, its pricing structure can be complicated and costly. On the other hand, Event.Gives delivers professional-grade tools without the high fees or hidden costs, ensuring that more of your funds go directly to your cause. Additionally, Event.Gives supports fundraising events without the confusion of junk fees, making it easier to manage and maximize your fundraising efforts.

Questions to Ask When Evaluating Fundraising Platforms:

• Are all costs, including transaction fees, clearly outlined?
• Can donors easily cover fees, and how are they notified?
• Are there hidden charges for features like fraud monitoring or card updates?
• How does the platform secure sensitive donor information?

By asking the right questions and choosing a transparent platform like Event.Gives, your nonprofit and community can focus on what matters most—creating impact and driving change.

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