As we continue to focus on growing peer-to-peer fundraising programs like Dance Marathon and Extra Life, the credit card processing fees are growing significantly as well.  CMN Hospitals processing costs in 2016 were around $2 million—roughly triple the amount paid just three years ago when we put the current operating model in place.

We expect to see significant growth in these programs over the next few years and therefore costs will continue to rise.  We have been looking for ways to reduce the processing costs with the credit card companies, but we do not have enough transaction volume with the credit card companies to leverage any discounts yet.  As things continue to grow, that may change.

Other charities have had some success in asking the donors if they would like to cover the cost of the transaction fees.  CMN Hospitals conducted a small test with a group who contributed through Donor Drive and about 50% of the participants agreed to pay the fees.

Below is a screen shot of the ask on Donor Drive.  It is a simple check box below the donation that clearly states the additional amount to cover processing costs.

We are expanding the opportunity to pay the credit card transaction fees to all donors who participate in Peer2Peer fundraising through Donor Drive.  The donor receives an email notification of the amount paid which includes both the donation amount to the hospital and the payment of the credit card transaction fees.  Because these funds will be used to pay credit card processing fees, they will not be distributed to member hospitals.

This idea was presented to the CDO Advisory Committee for feedback on May 24^th and the group agreed CMN Hospitals should move forward with the plan as presented.  It will begin showing up this month on all Donor Drive fundraising pages for CMN Hospitals’ programs such as Dance Marathon and Extra Life.

For questions, contact Teri Nestel (tnestel@cmnhospitals.org)

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Teri Nestel | Chief Administration Officer

Office (801) 214-7503 Cell (801) 580-1082
Children’s Miracle Network Hospitals^®
205 West 700 South
Salt Lake City, UT 84101