Why does Sapling and other online platforms say they are “free” while still adding fees? Let’s break this article into two parts. The first is written for a 5th grader (for me basically). The second is a much more detailed outline.
Explain “fees” to me like I’m a Fifth Grader!
Okay, imagine you have a lemonade stand. When you say your lemonade is “free,” you mean people don’t have to pay just to look at your stand or to talk to you about your lemonade. But, when they actually want a cup of lemonade, they have to pay for it.
Now, let’s talk about Sapling, which is like a big, online lemonade stand for donations. Sapling says it’s “free” to use because it doesn’t charge you just for signing up or setting up your account. But, when someone donates money through Sapling, Sapling takes a little bit of that money—5%—as a fee.
Why does Sapling take 5%? Well, just like you have to buy lemons and sugar to make your lemonade, Sapling has things it needs to pay for, too. They need to pay for computers and people to make sure everything works safely and smoothly. This includes making sure the money goes to the right place and that no bad guys can steal it.
So, every time someone gives money through Sapling, they take a small piece to help pay for all of that important stuff. This way, they can keep their online lemonade stand running safely and help more people donate money to good causes.
Sapling makes it simple by only taking 5%, and they also give your friends the choice to pay that extra 5% so that all the money they give goes to help the cause, just like when someone gives you a tip at your lemonade stand.
Now Explain “free” and “fees” in More Detail
In the ever-evolving world of online fundraising, the allure of “free” platforms can be both enticing and misleading. As we delve into the intricacies of what it truly means for a platform like Sapling to be “free,” we have to discover the nuanced reality that underpins the digital fundraising ecosystem.
When marketing materials tout a service as “free,” they often mean that there are no upfront costs to create an account, access the platform’s basic features, or engage with its interface. You can sign up without the need to provide credit card details, and explore the tools available at no initial expense. However, the real magic—and cost—begins when you actively use the platform to facilitate donations.
The infrastructure that powers these services is far from free. Platforms like Sapling invest significant resources into building and maintaining the technological backbone that ensures a seamless and secure user experience. This includes hosting services through giants like Amazon, Google, or Microsoft, developing robust partnerships with high-security payment processors, and employing skilled programmers to create and maintain an intuitive, bug-free interface.
Every transaction carries with it a host of associated fees, from credit card processing charges levied by companies like Visa or American Express, to deposit fees when funds are transferred into your nonprofit’s account. In addition, the cost of maintaining secure servers and application firewalls—essential for protecting sensitive donor data—adds to the financial burden.
So, why does Sapling charge a 5% fee? This flat fee is designed to encompass all potential costs incurred per transaction. It simplifies the financial landscape for users by covering credit card fees, processing charges, hosting costs, and even future platform enhancements. This approach mitigates the frustration many organizations feel when faced with a myriad of additional charges from various third-party vendors.
The 5% fee offers a predictable, transparent pricing structure that allows organizations to focus on what truly matters: raising funds and driving impact. Moreover, by giving donors the option to cover these fees, Sapling ensures that the full value of a donation can be realized by the recipient organization.
In a world where nothing is truly free, Sapling’s model is a testament to clarity and fairness. It underscores the essential truth that while the initial steps in digital fundraising may not cost a dime, the ongoing support and development of a secure and efficient platform necessitate a sustainable financial model. By understanding and embracing this reality, organizations can make informed decisions that align with their mission and financial goals.
In conclusion, while the notion of “free” is a compelling marketing tool, the transparency and predictability offered by Sapling’s 5% fee structure present a more sustainable and reliable solution for nonprofits navigating the complex landscape of online fundraising.
