What happens when a donors decides to cover your fees

The purpose of this article is to explain what happens when a donors chooses to cover the fees associated with their donation and the amount that is left in the hands of the campaign manager (hint: it is not exactly 100% of the original donation amount but it is very very close). Most donors on Jewcer choose to cover the fees (over 80%) which makes the total, “de facto”, fees below 2% on average.

The fees per donation are:

• 2.9% + $0.30 goes to the payment system used, also known as “transaction fees”. This fee is applied to the total amount the donor agrees to be charged.
• 5% goes to Jewcer as our fees to maintain our operations as a non-profit organization. This percentage is applied to the donation amount.

For example, if a donor chooses to donate $100, the fees associated with this amount are:

• Transaction fees = 2.9% of $100 + $0.30 = $3.2
• Jewcer fees = 5% of $100 = $5

Total fees amount in this case = $3.2 + $5 = $8.2

If the donor does not choose to cover the fees for their donation, they are charged $100 and the campaign receives $100 – $8.2 = $91.8

Things get slightly interesting (some would say “complicated”) when the donor decides to cover the fees (and, as mentioned before, the vast majority of them do). The donor is asked if they would be willing to cover the $8.2 (we specifically tell them what the amount is). If they say yes, they are now charged $100 + $8.2 = $108.2

The fees are now applied in the same way as before (and always) to this new total:

• Transaction fees = 2.9% of $108.2 + $0.30 = $3.44
• Jewcer fees = 5% of $100 = $5 (note that we decided to take the same amount of fees regardless)

As you can see, the amount of fees taken by the payment system is now larger (it was $3.2 and now it is $3.44) as the total amount of the transaction is larger (it was $100 before and now it is $108.2). In this case, the donor is charged $108.2 and the campaign receives $108.2 – $3.44 – $5 = $99.76

As you can see, the campaign does not receive %100 of the original donation amount ($100) but it is very close. In this case, the total, “de facto”, fees are $0.24 off of $100 which is 0.24% (that is less than a quarter of a percent).

We hope this makes things slightly clearer. As always, if you have any more questions, please do not hesitate and email us at help@jewcer.com