The True Cost of "Free" Donation Platforms in 2026
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This article contains affiliate links. If you sign up through one of them, I may earn a small commission at no extra cost to you. Details
Every nonprofit wants to minimize overhead. So when a donation platform says "free," it's tempting to sign up without reading the fine print. But after helping dozens of organizations switch platforms over the years, I've learned that "free" usually means one of three things, and only one of them is actually good.
The three kinds of "free"
1. Freemium (free tier with limits)
This is Donorbox's model. You get a basic free plan, but it comes with the platform's branding on your donation forms and a 1.5% platform fee on every transaction. For a nonprofit processing $10,000/month in donations, that's $150/month you're losing, every month, forever, just in platform fees. Add payment processing (2.2% + $0.30), and you're paying $400/month for "free."
The trick is that removing the branding and getting features like text-to-give requires upgrading to $139/month. So the free tier is really a funnel to paid plans.
Verdict: Free to start, but expensive to grow.
2. Tip-based (donors cover the cost)
This is GiveButter's model, and it's genuinely different. GiveButter charges nonprofits $0: no subscription, no platform fee. Instead, donors see an optional tip prompt during checkout. GiveButter suggests 10-15%, and most donors add something.
The important detail: the tip is fully optional. Donors can set it to $0. Your organization never pays a platform fee regardless.
You still pay payment processing (2.9% + $0.30 per transaction), but every platform charges that.
Verdict: Actually free for the nonprofit. The processing fee is the only cost.
3. Ad-supported or data-monetized
Some platforms offer free tools but monetize through advertising on your donation pages or by selling donor data. This is rare among reputable platforms, but I've seen it with smaller, newer tools. If a platform doesn't charge fees AND doesn't use tips, ask yourself how they make money.
Verdict: Avoid. Your donors' trust is worth more than saving on fees.
The real math
Let's say your nonprofit processes $15,000/month in online donations:
| Platform Model | Monthly Cost | Annual Cost |
|---|---|---|
| Freemium (Donorbox free tier) | ~$575 | ~$6,900 |
| Freemium (Donorbox Standard) | ~$764 | ~$9,168 |
| Tip-based (GiveButter) | ~$465 | ~$5,580 |
| CRM + Giving (Bloomerang Standard) | ~$624 | ~$7,488 |
The difference between the cheapest and most expensive option is $3,588 per year. For a small nonprofit, that's real money.
What I tell nonprofits
Start with a genuinely free option like GiveButter if you're processing under $50K/month. If you outgrow it or need specific features (multi-currency, Salesforce integration), you'll know exactly what you need and can make an informed upgrade.
Don't let "free" be the only reason you pick a platform. But don't overpay for features you won't use either.
Try GiveButter (actually free)