What is Donor Covers Costs (DCC)?
Donor Covers Cost, also known as DCC, allows donors to boost their impact by providing your donors with an option to cover the cost of operating your online platform.
Most NonProfits use DCC to help cover the cost of transaction fees.
Every online donation has a transaction fee associated with it. When DCC is enabled, donors have the opportunity to cover this cost. Transaction fees are costs NonProfits accumulate to provide secure and donor-friendly giving platforms online.
How Donor Covers Cost can help you!
On average, NonProfits who enable Donor Covers Cost experience an 80% conversion from their donors. Markets such as faith-based organizations, Arts & Culture and Animal Wildlife commonly see above the 80% mark on conversion. Contributions earned through DCC cover 150% of the average bill cost.
Let's look at the following scenario:
Judy gives $100 to her local food bank. When Judy donates using the online giving page, a transaction fee is charged to the food bank to receive Judy's donation. After paying transaction fees, the food bank ends up with a smaller contribution from Judy. Transaction fees are often a mix of a flat per-transaction cost (for example $0.30), plus a percentage of the dollar amount of the transaction (for example 4.5%).
Most donors like Judy don't even know the organizations they're donating have to pay a fee on their donation. Enabling DCC gives Judy the option to donate an extra few dollars or cents to cover that cost for the charity. In a lot of cases, donors like Judy are happy to cover the cost.