I hate the whole credit processing fee bit -- Why are 2+% of all donations going towards VISA? There should be a direct deposit through your bank card or something!
They actually use a payment processor and the full charge is 4%.
It states they also disburse the donations, which may actually end up being a rather good deal. That is, collecting money via creditcard AND getting that money to a local NGO in Mali is not going to be cheap.
But regardless, 4% does sound like a lot, especially if they disburse to e.g. US based organisations that work abroad.
If the bitcoin ecosystem matures it'd be able to help a huge deal in this regard. Circle just launched offering free and instant purchase using bank or credit, and Bitpay offers 0% payment processing in 33 countries.
Anyway, I hope people consider checking out the give well foundation. Giving well is extremely important, and I'm concerned that getting a daily email with some organisations, without any data, analysis etc, we'll be giving very ineffectively to the guys with the most magical story, and perhaps, to the guys with the most money spent on marketing vs aid. Now I definitely am of the opinion that this is okay (great Ted talk on this), BUT if you could spend better, I'd encourage that.
The best example for me was this. Millions of people worldwide are blind due to cataracts, often due to malnutrition. You can largely and often completely 'cure' these people from their blindness with a cheap $20 operation that commonly happens in countries like India. Alternatively, you have blind people who can't be cured, often born blind. We can improve their quality of life, but in say the US it'd cost $20k to completely raise, nurture and train a guide dog.
So we have a choice to either cure someone's blindness completely, or literally spend three orders of magnitude (1000x) more to improve a blind person's life.
As you can imagine, getting one million donors to drop $20 would be a hugely successful campaign. But if they all spent it on guide dogs, it'd have much less of an impact of merely 1000 people donating $20 to completely cure the blindness of a similar number of people.
That's why giving well is so important. I fear apps and services like these diminish that. I hope we all appreciate our influence and act accordingly by carefully considering who to give your money to.
Thanks for posting that. I still wonder though whether NFG is able to deliver money to charities abroad, included with that 4%.
For example, an average remittance payment is about 9.3%. In some places it's 14%, because the financial infrastructure to get payments to some of the remote places on earth is really, really tricky. So if that's all included in the fee, it's a bargain.
If not (and it's just pure payment processing without subsequent delivery outside the US) it's really terrible. Paypal, Google, Stripe, they all beat it. Especially as there's often deals for non-profits, e.g. Bitpay/Coinbase will process charitable donations for free. Kiva's creditcard fees for example are waived if I remember correctly.
