Clicking to contribute generously on digital donation platforms - Charity platforms enable users to express empathy effortlessly, with a simple mouse click.
In the digital age, online donation platforms have made it easier than ever to support those in need with just a few clicks. Two popular platforms, GoFundMe and Betterplace, have gained significant traction in Germany. Let's take a closer look at how these platforms compare, particularly in the context of private donation campaigns.
GoFundMe, an internationally recognized platform, charges a transaction fee of 2.9% plus €0.30 per donation to cover payment processing. Donors have the option to pay a voluntary tip to support GoFundMe. Funds become available for withdrawal within 2-5 business days after setup.
On the other hand, Betterplace, a German donation platform, typically operates with no platform fees for private donation campaigns. Instead, it relies on voluntary donations from donors to cover operational costs. Payment processing fees apply but are usually lower given local payment methods and Euro currency usage. Betterplace is widely used in Germany for private and nonprofit fundraising and adheres to local regulatory and tax requirements.
Key differences specifically in the German context for private donation campaigns are as follows:
| Aspect | GoFundMe | Betterplace (Germany) | |----------------------------|---------------------------------------------|---------------------------------------------| | Platform fee | 0%, free to start/manage fundraising | Usually 0% for private and nonprofit campaigns | | Transaction/payment fees | 2.9% + €0.30 per donation (USD-based) | Lower payment processing fees in Euros; no fixed fee on donation amount | | Currency and location | USD based; Euro fundraising possible but involves conversion | Euro-based; optimized for German donors and recipients | | Fund availability | 2-5 business days after withdrawal setup | Usually similarly fast, depending on method | | Donor tip/support option | Optional tip from donors to support platform| Voluntary donations for platform costs, no mandatory fees |
For private donations in Germany, Betterplace tends to be more cost-effective and locally adapted due to the absence of fixed transaction fees and Euro native processing. GoFundMe, while widely used internationally, considers fees and currency conversion which can affect the net amount received by German beneficiaries.
A recent example of a successful private donation campaign on GoFundMe was for the family of the hotel operator in Kröv, Germany, which has already collected almost 95,000 euros. The funds were paid directly to the hotel operator and were intended to help the bereaved mourn in peace and alleviate their financial concerns. The donation appeal was started by a restaurant group in the town.
Another notable campaign was for a family from the Eifel, Germany, which collected almost 65,000 euros due to the father's death while trying to rescue his children from the water at the English Channel in northern France. This campaign was hosted on Betterplace.
In summary, Betterplace offers a fee structure better suited for private donation campaigns in Germany with minimal fees and local currency advantages. GoFundMe charges a fixed transaction fee and is optimized for USD transactions with optional donor tips, making it somewhat costlier in this context. It is advisable to only donate if one knows the initiators of the donation campaign, whether on GoFundMe or Betterplace. For appeals from private individuals, Goodcrowd.org on Betterplace is an option to consider.
- In the context of private donation campaigns in Germany, it is more cost-effective to use Betterplace due to its absence of fixed transaction fees and native Euro processing, unlike GoFundMe which charges a fixed transaction fee and is optimized for USD transactions, making it somewhat costlier.
- For individuals considering employment in the nonprofit sector, understanding the financial and technological aspects of various donation platforms, such as GoFundMe and Betterplace, can provide valuable insights when creating or supporting community fundraising campaigns.
