Is Free Really Free? Evaluating Zero-Fee Platforms
By GiveGrove• 12 min read • Published 2026
Yes, free fundraising platforms are real, and the good ones are completely legitimate. Most are funded by optional tips that donors choose to add at checkout, not by a cut of your donations.
But "free" doesn't always mean the same thing. Some platforms waive their own fee but still pass card processing costs on to you. Others present the tip in ways that leave donors feeling tricked, or hold back key features for paid plans.
Below, we explain how zero-fee platforms make money, what to check before you sign up, and how GiveGrove compares with Zeffy, Givebutter, GoFundMe and a few others. Yes, we put ourselves first. We've also been upfront about the trade-offs of every platform, ours included, so you can judge for yourself.
How Zero-Fee Platforms Actually Make Money
Zero-fee platforms earn their revenue from optional donor tips. At checkout, the donor is asked whether they'd like to add a small contribution to support the platform itself. The tip pays the platform, and the donation stays with your organization.
Every online gift can carry three separate costs, and "free" usually describes only one of them:
| Cost | What it is | Who pays it on a zero-fee platform |
|---|---|---|
| Platform fee | A percentage the software company keeps from each gift | No one. This is the fee that goes to $0. |
| Card processing | Charged by the payment processor on every card transaction, commonly 2.9% + $0.30 | Depends on the platform: the platform, the donor or your organization |
| Optional tip | A voluntary contribution to the platform | The donor, only if they choose to |
Card processing is the one cost no platform can make disappear, because banks and card networks charge it on every transaction. The real question is who pays it. Zeffy covers it with tip revenue, and Givebutter does too when tips are on and donors don't cover it. On GiveGrove and most others, donors or your organization pay it, and you choose how.
The model only works if donors actually tip, and many do. Zeffy reports that about two out of three donors leave a tip. At GiveGrove, when donors are given the option to cover processing fees, they choose to about 90% of the time.
Are Zero-Fee Platforms Legit?
Yes. Tip-funded software is a legitimate business model, and it now powers some of the largest fundraising platforms in North America. Zeffy, for example, says more than 100,000 nonprofits have raised over $2 billion on its platform, and it is a certified B Corp.
The real criticism of zero-fee platforms isn't whether they're legit. It's how the tip is presented. On Capterra and G2, nonprofits describe donors who didn't realize the tip was optional, or that it went to the software company instead of the cause. Even Zeffy's own review roundup lists donor confusion about tips as its main drawback.
That matters because your donors' trust belongs to you, not the platform. If a donor feels surprised at checkout, they don't blame the software. They blame your organization.
Most tip-funded platforms, GiveGrove included, suggest a tip amount by default. What separates a fair tip prompt from a frustrating one is how it's presented:
Clear labeling: the tip is plainly described as support for the platform, not your cause.
Easy to change: donors can lower the tip or set it to $0 without hunting for it.
Kept separate: the tip is added on top of the donation and shown apart from any processing fee.
What to Compare Before You Choose
The word "free" on a pricing page tells you very little on its own. Ask every platform these seven questions before you commit:
Is there a platform fee, and when does it apply? Some platforms charge one if you turn tips off, or on certain kinds of transactions.
Who pays card processing? The platform, your donors or your organization. This is often the biggest real cost.
How is the tip presented? Go through checkout as a donor. Note the default tip and how easy it is to change.
What are the exceptions? In-person card readers, auction auto-charge and recurring gifts are common places where "free" stops applying.
How fast do you get paid? Payout timing affects cash flow, especially right after a big event.
Are the features you need included? Confirm auctions, ticketing, exports and texting aren't held back for a paid tier.
Who picks up on event night? Find out whether a real person is available if something breaks mid-auction.
1. GiveGrove 🍋
GiveGrove is built for fundraising events: ticketing, silent and live auctions, Fund-a-Need, peer-to-peer and donation pages, all under one event. And unlike Zeffy, Givebutter, GoFundMe or BetterWorld, it shares tip revenue with your organization.
How pricing works
GiveBack Guarantee: no platform fee, ever. Donors see a suggested, optional tip at checkout or when bidding, and GiveGrove sends up to 10% of each tip back to your organization.
Classic: 4% of donations and no tip prompt. The fee stops once an event raises $100,000, so the most you'll ever pay is $4,000 per event.
Card processing: 2.9% + $0.30 per transaction on either model. You decide whether donors must cover it, can choose to cover it, or your organization absorbs it.
Neither model has contracts, subscriptions, deposits or upfront costs. You can switch models mid-event, and payouts arrive every two business days.
What people like
A model that fits the event: tips for community events, or a predictable capped fee for galas and boards that prefer a traditional structure.
Free auction checkout: on GiveBack, winning bids charged automatically when the auction closes carry no platform fee. On Givebutter, the same auto-charge always carries a 3% platform fee, even with tips on.
Getting something back: shared tips add a small, no-effort revenue stream. For many events, that's an extra $50 to $100 or more.
Real people on event night: the team is on call during your event, and there's a help button on every page.
Trust: one regular customer, a seasoned nonprofit leader, told our founder GiveGrove was the only event platform she'd looked at that "doesn't feel predatory."
What people dislike
GiveGrove is a smaller company, so it doesn't have hundreds of public reviews yet. These are the trade-offs we'd point out ourselves:
Processing isn't absorbed: Zeffy, and Givebutter with tips on, cover card processing when donors don't. On GiveGrove, donors or your organization pay it.
Classic costs more for mid-size events: its 4% tips-off fee is higher than Givebutter's 3% tips-off fee until an event passes about $133,000. Above that, the $4,000 cap makes Classic cheaper.
Best for: schools, churches and community nonprofits running auctions and events that want a zero-fee option, real support on event night and a share of the tips.
2. Zeffy
Zeffy has the most generous version of "free" on this list. It charges nonprofits nothing, covers card processing itself and offers every feature to every organization.
How pricing works
Zeffy's only revenue is the optional tip donors can add at checkout, and it says about two out of three donors leave one. There's no paid tier, no platform fee and no processing fee for you or your donors. Payouts go out weekly by default, or next-day for eligible organizations, after a 1 to 3 business day fraud review.
What people like
Truly $0: reviewers consistently praise keeping every dollar, with no cut lost to card processing.
One free toolkit: donations, tickets, auctions, raffles, memberships, peer-to-peer, online stores and a donor CRM.
Ease of use and support: fast setup and responsive help earn consistently high ratings on G2 and Capterra.
What people dislike
The tip prompt: by far the most common complaint. Reviewers say it isn't obvious how to lower the tip or set it to $0.
Extra work for you: some nonprofits say they've had to coach donors on how to skip the tip, and one donor on Trustpilot said they only noticed it in the confirmation email. Zeffy does let donors request a refund of the tip afterward.
Auction depth: Zeffy's own review roundup notes that customers want more auction management tools.
Best for: small and volunteer-run nonprofits that want the lowest possible cost and are comfortable with a tip prompt on every checkout.
3. Givebutter
Givebutter pairs free donation forms, events and auctions with a full donor CRM. Its model is tip-or-fee: leave tips on and pay nothing, or turn them off and pay a flat 3%.
How pricing works
Tips on (the default): 0% platform fee. Donors are also asked to cover processing, and if they don't, the Givebutter Guarantee covers it.
Tips off: a flat 3% platform fee plus processing (2.9% + $0.30 for cards, 1.9% + $0.30 for ACH). You choose whether donors cover it.
The fine print: the Guarantee doesn't cover card reader or DAF payments. Auction winnings that are auto-charged, or charged by you from the dashboard, always carry the 3% fee plus processing, even with tips on.
Givebutter Plus: an optional upgrade from $29 a month, billed annually, that adds texting, automations, custom reports and phone support.
Payouts by direct deposit take 2 to 3 business days.
What people like
Breadth for $0: reviewers praise getting forms, events, auctions, email and a CRM in one place, with unlimited users and contacts.
Easy to use: the interface is a frequent highlight for staff and donors alike.
Payment options: Venmo, PayPal, Apple Pay, ACH and donor-advised fund gifts.
Support: 24/7 live chat and email for every account.
What people dislike
The tip prompt: the top complaint. Reviewers on Capterra and G2 say it confuses some donors, and a few thought the nonprofit had charged them extra.
Opting out costs you: some organizations turn tips off to avoid confusing donors and accept the 3% fee instead.
Auction checkout fees: auto-charging winning bidders, the most convenient way to collect, isn't covered by the free model.
Upsells: texting, automations and phone support require a Plus subscription.
Best for: nonprofits that want a free all-in-one CRM and fundraising suite, and are comfortable with a tip prompt or with paying 3% to skip it.
4. GoFundMe
GoFundMe is the best-known name in online giving, and it charges no platform fee. It's built for crowdfunding campaigns, though, not fundraising events.
How pricing works
There's no fee to start a fundraiser, and donors can add an optional tip. A transaction fee of 2.2% + $0.30 per donation for certified nonprofits (2.9% + $0.30 for individuals) is deducted from every gift automatically. Recurring donors pay an extra 5% per gift. Larger nonprofits can use GoFundMe Pro, formerly Classy, which has custom pricing.
What people like
Reach: supporters already know the brand, and GoFundMe says more than $50 million is raised on it every week.
Easy peer fundraising: anyone can start a fundraiser for your cause in minutes.
Payment options: cards, PayPal, Apple Pay and Google Pay.
What people dislike
The fee comes out of the gift: the checkout highlights the 0% platform fee but doesn't itemize the transaction fee, so donors may not realize your nonprofit gets less.
Slower routing for some gifts: unless your nonprofit has enabled GoFundMe's direct payments, donations can pass through PayPal Giving Fund and take 15 to 45 days to arrive.
Not built for events: standard GoFundMe has no auction or ticketing tools. Event features live in the separate GoFundMe Pro product.
Strained trust: GoFundMe drew criticism for building donation pages for more than a million nonprofits without their consent, then reversed course.
Best for: quick, shareable crowdfunding campaigns, especially when supporters want to fundraise on your behalf.
Other Free Options Worth Knowing
The tip model has spread well beyond these four, especially in auction software.
BetterWorld runs auctions, raffles, ticketing and crowdfunding on a Free Forever plan, funded by a suggested contribution on winning bids and tickets. Donors are also offered the chance to cover card processing (2.9% + $0.30). To drop the tip prompt, you can switch to Flex, which charges 2.2% on donation forms and 5% on auctions and other campaigns, or pay $1,550 a year plus 1.25% for the Partner plan. Users like how fast an auction goes live. The catch: automatic payouts, priority support and event-night concierge help are tied to paid plans.
GalaBid and RallyUp also offer free, tip-supported plans for auctions. Every.org, itself a nonprofit, runs free donation pages and asks donors for optional tips too.
Whichever you consider, run a test transaction as a donor before you commit. Five minutes at checkout will tell you more than any pricing page.
Side-by-Side Comparison
All four charge a 0% platform fee on their free model. The real differences are who pays card processing, whether you get anything back, and whether the platform is built for events.
| Platform | Platform fee | Card processing | Tip shared with you | Auctions and ticketing | Payouts |
|---|---|---|---|---|---|
| GiveGrove 🍋 | 0% with GiveBack, including auto-charged auction wins, or 4% capped at $4,000 per event with Classic | 2.9% + $0.30; you choose whether donors must cover it, may cover it, or you absorb it | Up to 10% | Yes | Every 2 business days |
| Zeffy | 0% | Covered by Zeffy | No | Yes | Weekly by default; next-day if eligible |
| Givebutter | 0% with tips on; 3% with tips off and on auto-charged auction wins | Covered by Givebutter with tips on, except auto-charged auction wins and card readers | No | Yes | 2 to 3 business days |
| GoFundMe | 0% | 2.2% + $0.30 deducted from each gift | No | Not on standard GoFundMe | Direct if enabled; otherwise 15 to 45 days via PayPal Giving Fund |
Pricing as published on each platform's website, checked September 28, 2026. Fees change, so confirm current pricing before you sign up.
The Bottom Line: Is Free Really Free?
For your organization, yes. Every platform in this roundup can run a fundraiser without taking a platform fee from your donations, and the tip model behind them is legitimate.
But "free" always costs someone something. Donors pay through tips and processing fees, or the platform absorbs costs and leans harder on the tip. The right choice depends on which trade-off fits your donors:
Lowest possible cost: Zeffy covers everything, if you're comfortable with its tip prompt.
A free CRM and a big toolbox: Givebutter, but watch the auction checkout fees.
A quick crowdfunding campaign: GoFundMe's reach is hard to beat.
An auction or event where you want flexibility: GiveGrove 🍋 lets you choose tips or a capped fee, shares tips back with you and has real people on call during your event.
Whichever you choose, test the checkout as a donor, read the fine print on exceptions and tell your donors up front how the platform is funded. That transparency is what keeps "free" from feeling like a trick.
Want to see what GiveGrove's checkout looks like to your donors? You can set up a free demo event in a few minutes.
Frequently Asked Questions
Are free fundraising platforms really free?
For nonprofits, the good ones are. They charge no platform fee and earn revenue from optional donor tips instead. Card processing fees still apply, and depending on the platform, the donor, the platform or your organization pays them.
How do zero-fee fundraising platforms make money?
Mostly from optional tips that donors add at checkout. Some also sell optional upgrades, such as Givebutter Plus, or offer paid plans that remove the tip prompt.
Do donors have to pay the tip?
No. On every platform in this roundup, the tip is optional and can be lowered or removed at checkout. Zeffy and GoFundMe also let donors request a refund of a tip they didn't mean to leave.
What's the difference between a tip and a processing fee?
A processing fee is charged by the card processor on every transaction, commonly 2.9% + $0.30. A tip is a voluntary extra gift to the platform itself. Well-designed checkouts show them as two separate choices.
Which free platform is best for a silent auction?
GiveGrove, Zeffy, Givebutter and BetterWorld all run auctions on a free, tip-supported model. Before choosing, check how each one handles auto-charging winning bidders and whether event-night support is included or a paid add-on.
Thanks for trusting GiveGrove with your fundraisers!
The GiveGrove Team 🍋
A Code Works company
GiveGrove makes events and auctions for fundraising easy. Email info@givegrove.com for more info. Click here to sign up for our mailing list.
