The Hidden Costs of “Free” Fundraising Platforms — And Why Transparency Matters

In the world of online fundraising, “free” is one of the most powerful , and misleading, words you’ll encounter.

At first glance, platforms that advertise themselves as “free” to use seem like the obvious choice. Why wouldn’t you maximise the funds raised for your cause by avoiding platform fees altogether?

But as many organisers discover, often too late, “free” rarely means cost-free.

This blog explores the hidden costs commonly associated with online fundraising platforms and why transparency, like that offered by Event PAL, is essential for organisers who want full control and clarity over their fundraising.

The Illusion of “Free”

Some platforms position themselves as having no setup fees or subscription costs. While technically true, this messaging often obscures how the platform actually generates revenue.

Instead of charging organisers directly, costs are often introduced elsewhere in the process through inflated prize mark-ups or a percentage cut of the funds raised.

Percentage Based Fees

One of the biggest hidden costs is the percentage taken from funds raised.

At scale, this becomes significant:

• A £10,000 auction could incur £500 + VAT in platform fees alone

• Payment processing fees further reduce the final amount received

These deductions are often only fully understood after the campaign ends, when event organisers reconcile the total funds raised.

Conditional “Free” Access

Some “free” features come with specific conditions:

• An obligation to purchase a minimum number prizes from the supplier prize catalogue with costs often inflated / marked-up

• Sponsor involvement may be encouraged, or required, to maintain a “no cost” model.

If these conditions aren’t met, additional charges or limitations may apply. This means “free” is often dependant on how you use the platform, not a universal guarantee.

The Bigger Picture: Why it Matters

While none of these costs are inherently wrong, platforms need to generate revenue to operate, however, the issue is how the costs are presented.

When pricing is:

• Fragmented

• Conditional

• Partially hidden

It creates uncertainty for organisers and friction for donors.

Our pricing reflects the real work that goes into delivering a reliable fundraising and event management system, including:

* Design & build time from experienced developers

* Pre & post event support

* Ongoing platform maintenance and technical expertise

* Software licence fees and hosting infrastructure

* Regular updates, improvements and feature development

* Event-specific setup, configuration and site amendments

A Better Standard: Transparent Fundraising

At Event PAL, we don’t rely on the word “free”, we rely on clarity.

Transparent pricing means:

• Upfront pricing

• No hidden extras

• No surprise fees

• No commission taken from the fundraising total

• No obligation to purchase items from our prize catalogue

Final Thoughts

Online fundraising platforms offer valuable tools and have helped many organisations raise significant funds. But like many “free” solutions, the real cost lies beneath the surface.

Event PAL commit to providing a fully supported online fundraising and event management platform that’s transparent from day one. You know exactly what you’re paying for, and why.

No smoke, no mirrors. Just honest pricing for a properly build and managed system.