Since the foundation of betterplace.org in 2007, we have passed on 100% of donations to project-supporting organisations. We have also covered all transaction costs incurred when donations are made, including bank fees, chargeback costs and cancellations using our own resources. Due to the increasing volume of donations on betterplace.org, these costs now amount to more than € 1 million.
We are happy to announce that the volume of donations is increasing every year. But this also means that our costs are rising. Unfortunately, we are no longer able to cover the transaction costs in this situation without putting our own creditworthiness as a charitable organisation and therefore our support as a whole at risk. We will therefore cover the transaction costs with 2.5% of the donations from 13/04/2017 onwards.
It is not about making more profit – as a charitable organisation we are not allowed to make any profit – but about paying our bills. It is still important for us that the social organisations benefit from the vast majority of the donations, so the use of betterplace.org will still be free and, as before, no basic fees will be charged.
What kind of costs?
With every donation, like with every online transaction, transaction costs are incurred. In handling payment transactions we have to rely on banks and payment service providers – who operate with a fixed servicing fee. In addition to that, fees for chargebacks, penalty fees for credit card abuse, legal costs in cases of suspected misuse of donations as well as personnel costs for the accounting department accure.
Just 2.5% of each donation will help us to cover these costs as a non-profit organisation and assure that betterplace.org can continue to offer their service to social organisations.
Does this affect all the donations?
The changes only apply to donations which are made on the www.betterplace.org website or the using of the the iFrame donation form integrated on your homepage. Donations which are collected via external donation platforms operated by betterplace.org are not affected. Our partners, sponsors and companies involved bear the costs for these portals. A complete list of all portals supported by partners is available here. This applies vor donations after April 13th. All donations received before this date will be fully forwarded (100 %), even if the payout is requested after April 13th.
What does not change?
In order to be able to finance the running of our website, develope new features for our platform and continue to improve our free services, we will still ask the donors for a voluntary contribution.
betterplace.org will still offer NGOs free tools, knowledge and coverage to make their fundraising more efficient, collect more donations and reach new donors:
- registration of an individual project page
- safe and easy handling of donations with four payment methods: PayPal, direct debit, credit card, Paydirekt (compatible for desktop, smartphone, tablet etc.)
- entry into our in unser list of transparent aid projects
- donation form to embed into your own homepage
- automatic distribution of tax receipts to the donors
- new donors and more coverage through our numerous company partners, partner-portalsand marketing campaigns
- marketing-tools to address donors like a the campaign-widget, a newsletter that can be design individually, social media connections and fundraising events.
- extensive statistics and analytics of the donstiona and the export of donor contact data
- fundraising support like trainings, webinars, tutorials and personal counseling
- support hotline for donors and organisations
Social organisations have more impact with the help of betterplace.org. We are supporting registered organisations with our tools, knowledge and coverage in order to collect funds. It is our aim to make donating easier, more efficient and effective, so that the social organisations can concentrate on their important work.
You can read about the reasons for this change in the open letter from our Management Board.