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  • 1.  Fee coverage in Event form created via Raisers Edge NXT

    Posted 06-09-2025 01:14 PM

    HI,

    When I create an event form in RE NXT, I need to select the processing fee option (either Blackbaud pays or Donor pays, or the organization pays).

    On the Givecampus platform, which we use for gifts, there is an option where the donor can either pay or let the organization pay the credit card fees. 

    But this is not in RE NXT.

    Any suggestions, please - what is best practice or what should be selected?

    Thanks

    Tripti



    ------------------------------
    Tripti Singh
    Montclair Kimberley Academy
    tsingh@mka.org
    ------------------------------


  • 2.  RE: Fee coverage in Event form created via Raisers Edge NXT

    Posted 06-09-2025 01:56 PM
    Some organizations offer donors the option of making an additional gift to cover credit card fees, while others do not. So, the first thing your organization must decide is whether to offer that option.

    If the answer is yes, and you turn that feature on in GiveCampus, the entire amount collected through GC is recognized as a donation. The next decision you must make is whether to record a single gift in RE for the combination of the two or split the two pieces out. That decision might be driven by whether the Business Office wants the credit card fee portion to go to a different fund.

    My preference is to split the gift into two components. RE permits split gifts (use the split gift tab), so you can show both portions as part of the single transaction and also show both pieces separately on the receipt.

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Fee coverage in Event form created via Raisers Edge NXT

    Posted 06-09-2025 02:05 PM
    Thanks John.

    I think I did not phrase my question correctly.
    The Give Campus platform is working good - it is upto the donor to decide if they want to cover the fees. So we give them an option, and we track the data correctly.

    Now we are starting to use the events registration with RE NXT. Here, there is no option. Either the donor pays or does not. We have to decide for all donors - should we ask them to cover the fees when registering for events or not?
    So, does it depend on organization to organization for events? Any best practices?

    Thanks again 
    Tripti




    Original Message


  • 4.  RE: Fee coverage in Event form created via Raisers Edge NXT

    Posted 06-09-2025 02:15 PM
    I will defer to others using that RE feature. However, please remember that if you mandate covering the credit card fees, it will disallow any deduction for that portion of the gift. Per IRS Publication 526, it must be made voluntarily for something to be considered deductible.

    That said, many events have no deductible component as they generally receive something of equal or greater value.

    Regardless, I have never enjoyed mandatory fees to cover credit card costs. Everything we do has overhead - so why are we worrying about a 2.5% credit card fee? We pay our brokers their commission, but don't ask donors to cover those (even though they are typically higher than 2.5%). And many banks charge outrageous amounts for wire transfers that we do not ask donors to cover.

    But I digress. If your two options are to charge or not, and the individual has no choice, I say don't charge. It's the cost of doing business.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 5.  RE: Fee coverage in Event form created via Raisers Edge NXT

    Posted 06-09-2025 02:53 PM
    Thanks John.

    This is very helpful to discuss with the team

    Best
    Tripti




    Original Message


  • 6.  RE: Fee coverage in Event form created via Raisers Edge NXT

    Posted 06-09-2025 02:18 PM
    Tripti, with RE, you can choose Complete Cover, in which case BB covers the cost, but asks the donor to cover. Note that the actual amount asked for from the donor is MUCH higher than the transactions cost, which is where BB's profit comes from. Not only are they profiting on the transaction fee, they're effectively also getting a 'tip' from the donors. The full amount you receive is charitable, and it is always equal to the gift amount selected by the donor, even if the donor ends up giving substantially more (tip requests vary, but I've seen them over 15% in some cases).

    Alternatively, you can select Donor Cover. In this case, you're asking the donor to cover, and either they do or they don't. However, you cannot set the fee amount yourself, BB does it automatically, and you'll either get the gift amount, or some smaller amount for donors who don't cover. Total amounts are all tax deductible. 

    In other words, BB prevents charities from monetizing the extra tip possibility, viewing that as their own profit potential. Other processors, like GoFundMe/Classy, give you the freedom to set the add-on rate as you wish, and collect it for your organization.



    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





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