When a donor opts to cover your processing fee, there are 2 key factors that go into how we approach the calculation:
- We include the Donorbox fee of 3.95%.
- We use the lowest Stripe/PayPal rate allowed, which is 2.2% + $0.30 (Stripe) and 1.99% + $.49 (PayPal). Donorbox doesn’t have access to check what your actual Stripe/PayPal rate is. So, this is the safest rate to use that ensures we don't over-calculate what your fees are.
Additionally, we use the same calculation logic as Stripe to ensure complete accuracy:
Pcharge: The final amount that your donor will be charged.
Pgoal: The intended donation amount
Ffixed: The fixed amount that Stripe/PayPal charges per transaction ($0.30)
Fpercent: The Stripe/PayPal rate + Donorbox rate
Let’s use an example where a donor wishes to donate $1,000 and cover the fees. Here’s how the calculation works:
Pgoal: $1,000
Ffixed: $0.30
Fpercent: 2.2% (Stripe) + 3.95% (Donorbox) = 5.95%
Amount charged to donor: $1,063.57
Remember, the amount is based on the estimated 2.2% + $0.30 Stripe or 1.99% + $.49 PayPal nonprofit rates. Unfortunately, we’re unable to use your actual Stripe/PayPal rate because neither processor shares that data with us beforehand. So, the final amount that you receive may differ based on what your actual Stripe/PayPal fee rate is. Additionally, It's important to note that we do not charge these fees, nor do they go to us. Donorbox will only keep the Donorbox fee rate.
Note: If you're not currently on the Stripe/PayPal nonprofit rates, it may be possible for us to modify the cover fee. Please email support@donorbox.org for more details.