Crowdfunding is a popular way to raise money for nonprofits or for personal use, but if you're planning to use an online platform make sure you read the fine print.
Many popular online fundraising platforms deduct fees from donations.
Facebook covers all fees for donations made directly to charitable organizations. If someone uses the site for a personal fundraiser a fee of 2.6% plus $0.30 per donation will be charged. Facebook says the charges cover payment processing and taxes.
GoFundMe charges a similar rate. The platform itself is free but there is a charge of 2.9% plus $0.30 per donation deducted. The company says fees are deducted from each donation in real time so campaign organizers and beneficiaries never have to pay out of pocket.
Raising money online? Expect to pay fees to big companies