Crowdfunding fees explained: what you actually keep

There are only two fees on a pledge

• Platform fee — 5% of the pledge (3% for verified nonprofits). This is how Pledzy pays for review, hosting and support. It is our only source of revenue.
• Card processing — 2.9% + 30¢ per pledge. This goes to the payment provider, not to us, and every platform pays some version of it.

What that looks like in dollars

• $25.00 pledge — $1.25 platform fee, $1.03 processing, $22.72 to the business.
• $50.00 pledge — $2.50 platform fee, $1.75 processing, $45.75 to the business.
• $250.00 pledge — $12.50 platform fee, $7.55 processing, $229.95 to the business.

The fixed 30¢ is why small pledges cost more

Percentage fees scale, but the fixed processing charge does not. On a $5 pledge the 30¢ is 6% on its own; on a $250 pledge it disappears into rounding. That is the honest argument for setting your lowest reward tier at $10 or more.

Costs owners forget to budget

• Making and shipping the rewards.
• Sales tax where rewards count as a sale.
• Income tax on the money raised.
• Your own hours running the campaign for a month.

Fees we do not charge

• No listing fee. Building and submitting a campaign is free.
• No monthly or subscription fee.
• No withdrawal or payout fee.
• No penalty for missing your goal — campaigns keep what they raise.