If a donor pays the credit card processing fee it should be added to the amount of the donation. Tips should not be considered or added because that is a fee paid to Give Butter.
For example:
Your donor make a $100 donation. The processing fees associated with this gift are 8%, or $8. Essentially, your organization receives a gross donation of $108, net donation of $100.
How do you thank the donor and record this gift in your fundraising CRM?
You thank your donor for $108 (full gift amount). The accounting entry would be a credit to Contributions of $108, Debit to cash of $100, and Debit to Expense (bank charge or fundraising expense) of $8.
HINT: You ALWAYS record the TOTAL gift amount in your fundraising CRM (this would include GIve Butters Engage, the transaction log and any amount passed in the Amount field using a ZAP_. You can worry about the details of processing fees and such in your finance system.
Created by Eve Lazaro
December 15, 2023