Tip-Based Fundraising Platforms sound free. The checkout story is more complicated.
Many fundraising platforms fund themselves by asking supporters to leave a voluntary tip during checkout. That can work for simple donation forms. For raffle ticket fundraisers, though, extra tip prompts can change buyer behavior, increase checkout friction, and make pricing feel less predictable.
Built to educate without the fluff: clear pricing examples, fundraising math, and a raffle-first explanation of how tip prompts can affect real checkout behavior.
What supporters often see at checkout
Tip-based platforms may preselect a donation to support the platform itself. That means a supporter buying raffle tickets can face one more decision right before checkout.
$24.40What a $20 ticket can become with a 22% tip prompt
30-40%Cart abandonment resulting in massive lost sales
How Tip‑Based Fundraising Platforms Work
Rather than charging the nonprofit a platform fee, tip‑based platforms ask supporters to contribute a small additional amount to the platform itself during checkout. The nonprofit keeps the full donation or ticket price, and the platform earns revenue through those voluntary tips.
Supporter visits the checkout
A donor or ticket buyer reaches the checkout page on the fundraising platform.
Tip prompt is displayed
The platform shows a suggested tip, often pre‑selected at a specific percentage, inviting the supporter to contribute to the platform itself.
Supporter chooses their tip (or opts out)
The supporter can accept the suggested tip, adjust it, or remove it entirely before completing the transaction.
Nonprofit receives full amount; platform receives tip
The organization receives 100% of the ticket price or donation. The platform collects its revenue from the tip pool.
Zeffy
Zeffy promotes a “free” platform funded entirely through voluntary supporter tips during checkout. The organization pays no platform fee. Tips are the platform’s primary revenue source.
RallyUp
RallyUp uses a tip‑supported pricing structure where supporters may contribute an additional amount at checkout. Tip levels vary by campaign type and configuration.
What Makes This Different
Traditional SaaS fundraising platforms charge the nonprofit a monthly fee or percentage. Tip‑based platforms shift that cost to the supporters themselves whether they realize it or not.
Advantages & Considerations
Tip‑based platforms work well in certain situations. We think it’s worth being upfront about that and also sharing where they can create challenges, particularly for ticket‑based fundraisers like raffles.
Where Tip-Based Platforms Shine
- No upfront platform cost for the organization
- Quick and simple onboarding, useful for small or one-off campaigns
- Donors who feel a connection to the platform may voluntarily support it
- Works reasonably well for straightforward donation campaigns where price consistency matters less
- Reduces the financial barrier for organizations just getting started with online fundraising
Where Tip-Based Platforms Can Fall Short
- Tip prompts introduce unexpected friction during ticket checkout
- Pre-selected tips often increase the total price supporters see, sometimes significantly (17–29% is “normal”)
- Ticket buyers behave differently than donors; unexpected costs can lead to abandoned purchases (30–40% loss is typical)
- Variable checkout totals may raise compliance questions for regulated raffle fundraisers
- Organizations have less control over the total price their supporters experience
🛡️ A Note on Raffle Compliance
Many states and jurisdictions regulate raffle fundraising and require that all entrants participate under the same pricing conditions. When supporters pay different totals at checkout because some accept a tip prompt and others don’t that variability can create compliance questions depending on the specific laws in your jurisdiction. This is one reason raffle-specific platforms often use pricing models that keep ticket pricing consistent for all participants. Raffle laws vary by location always consult legal counsel or local authorities before launching any raffle.
Typical Suggested Tip Percentages
Based on screenshots from several fundraising platforms, here are the pre‑selected suggested tip levels commonly shown during checkout. These suggestions are often selected by default meaning supporters who don’t notice them pay more than the ticket price alone.
Common Pre-Selected Tip Levels at Checkout
19%$3.80 on $20
22%$4.40 on $20
25%$5.00 on $20
29%$5.80 on $20
* Tip levels shown are illustrative based on publicly visible platform checkouts. Actual tip percentages vary by platform and configuration. When a tip is pre-selected, supporters who don’t notice it will pay more than the listed ticket price.
What Supporters Pay at Checkout
One of the clearest ways to understand pricing model differences is to look at what supporters actually see when they buy a $20 raffle ticket. Even small checkout differences can influence behavior especially when supporters are buying multiple tickets.
22% Tip Suggested
- Raffle ticket (1×)
- $20.00
- Suggested platform tip
- + $4.40
- Payment processing
- varies
Total supporter pays
$24.40+
Tip percentage is pre-selected. Supporters must actively choose to reduce or remove the tip before completing checkout.
✓ Transparent
- Raffle ticket (1×)
- $20.00
- Service fee (12% — shown upfront)
- + $2.40
- Payment processing
- included
Total supporter pays
$22.40
Every supporter sees the same price before they start. No surprises, no opt-out required. The fee is disclosed clearly at the start of checkout.
* This comparison uses illustrative figures. Actual tip percentages and service fees vary by platform and plan. Chance2Win also offers a Premium plan where the organization pays the platform fee directly and supporters see no additional checkout cost. View full pricing →
Predictable Pricing. Happier Supporters. More Money Raised.
When ticket buyers know exactly what they’re paying before they start, they’re more likely to complete the purchase. That’s why we built Chance2Win’s pricing model around transparency not tips.
How Checkout Friction Affects Your Results
The following example illustrates how checkout friction in any form can impact the total raised in a ticket-based fundraiser. These figures are based on modeling checkout abandonment patterns observed in ticket purchase flows. Your actual results will vary based on your audience, ticket pricing, and campaign setup.
$49,500Chance2Win Zero Fee — Supporter pays 12% — Near-full raise
~$32,500Tip-prompt platforms — High friction checkout — Checkout friction impact
* These figures are illustrative estimates based on a $50,000 raffle fundraiser target. Checkout abandonment rates vary significantly based on platform UX, audience familiarity, ticket price point, and campaign promotion. The intent is to show directional impact not to guarantee specific results.
Tip‑Based vs. Predictable Pricing Platforms
Here’s how the two models compare across the factors that matter most for ticket‑based fundraising, particularly for regulated raffles.
| Feature | Tip-Based Platforms | Chance2Win (Predictable Pricing) |
|---|---|---|
| Platform cost for your organization | Usually $0, platform earns revenue from supporter tips | Zero Fee option, $0 to the org, transparent 12% service fee to supporters. Or choose our Premium plan where your org pays a software fee. |
| Supporter checkout experience | Tip prompt shown during checkout, often pre-selected | Transparent, consistent checkout, supporters see the full price before they begin |
| Price consistency across supporters | Variable, some supporters pay tip, others don’t; totals differ | Consistent, every supporter sees the same pricing structure |
| Impact on ticket purchase completion | Unexpected tip prompts can introduce checkout friction and abandoned purchases | Simple, predictable pricing helps maximize completed ticket purchases |
| Raffle compliance considerations | May raise questions, variable checkout totals could be scrutinized in regulated jurisdictions | Designed for raffles, consistent pricing structure built with regulated raffle requirements in mind |
| Hybrid ticket sales (online + in-person) | Typically online-only; in-person entry handling varies by platform | Full hybrid support, online sales plus in-person cash/check entries in one unified system |
| Raffle-specific expertise | Most tip-based platforms serve broad nonprofit fundraising, not raffle-specific | Built specifically for raffles, Queen of Hearts, 50/50, basket raffles, ball drops, and more |
| Support | Varies by platform, typically email or chat | Real phone support from fundraising experts with nearly 20 years of raffle experience |
Chance2Win was built specifically for raffle fundraising, not generic donation checkouts pretending to fit every use case.
The strongest conversion angle here is not chest-beating. It is clarity. Explain exactly why a raffle-first platform creates a better supporter experience and a more manageable fundraiser for the organization running it.
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- Ticket pricing strategies that increase average order value
- Bundle psychology, why the right packages outperform discounts
- Hybrid event playbooks for in-person + online sales
- Common compliance mistakes and how to avoid them
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Frequently Asked Questions
Are tip-based fundraising platforms always bad?
No. They can work well for some smaller donation-focused campaigns. The problem is assuming that donation-checkout behavior and raffle-ticket checkout behavior are the same thing. They are not always the same.
Why do tip prompts matter more for raffle fundraisers?
Raffle buyers are usually trying to complete a purchase at a fixed price. When the checkout suddenly asks them to add an optional tip, it creates another decision point and can change how straightforward the purchase feels.
What is the cleaner alternative to tip-prompt pricing?
Predictable pricing. That can mean a transparent supporter-paid service fee or a low-cost organizer-paid model. The key is that supporters understand what they are paying and see a consistent structure at checkout.
Does Chance2Win offer a zero-cost option for organizations?
Yes. Chance2Win offers a Zero Fee model where the organization pays nothing and the supporter sees a clear service fee, along with a Premium model for organizations that want the cleanest possible supporter checkout.
Are tip prompts a legal problem for raffles?
They can raise compliance questions depending on the state or jurisdiction because raffle regulations often focus on consistent pricing conditions for entrants. Organizations should verify local raffle rules before launch.
Talk to a Support Team Member
(813) 699-9325
Run a raffle fundraiser with pricing people can understand the first time they see it.
Create your raffle page, set your ticket pricing, and choose the pricing model that fits your organization best. Cleaner checkout usually means fewer questions, fewer surprises, and more completed purchases.