Let’s Talk About Fees: What 100,000+ Online Raffles Have Taught Us About “Free,” “Low-Cost,” and Everything In Between

After helping with somewhere north of 100,000 online raffles worldwide over the past two decades, we’ve seen every pricing model in the industry—free, not-so-free, low-cost, flat-fee, percentage-based, guilt-based, tip-based, and everything in between. And because Chance2Win is a U.S.-based company with real U.S.-based phone support, we hear the confusion every day:

“Why does this platform call itself free… but my donors see 29% tip options?”
“Why did our organization get charged anyway when donors didn’t cover the optional fees?”
“Why are these fees so complicated… and why do our supporters feel guilt-tripped into covering them?”

So let’s break it all down—with actual data from real online raffles, and a transparent look at how different pricing models impact donations, donor confidence, and your bottom line.

The Truth about Online Raffles: “Free” Is Never Free

Across the industry, you’ll see three big models:

1. Percentage-Based Platforms (The Norm)

Most paid platforms charge somewhere around 8% in platform fees—roughly double what our average organizations pay under our Premium Low-Cost plan. And since these platforms only support traditional online raffles, you’re paying more for fewer features.

With these providers, every ticket sold comes with a cut. For smaller schools, churches, or local nonprofits, those cuts add up quickly and eat directly into money meant for your mission.

Your cause loses.

2. “Free” Tip-Based Platforms

Yes, donors can technically opt out of tipping…
But what they’re presented with is often:

• 17% – 29% “recommended” tips
• A deliberately complicated “opt-out” flow
• Messaging that implies the nonprofit will be charged if they don’t tip
• Emotional language that guilt-pushes donors into covering costs

We’ve seen donors abandon checkout entirely when faced with aggressive tip prompts. And in some models, the nonprofit is still charged when donor tips don’t cover the fees—meaning the fundraiser isn’t free after all.

Worse, these platforms only offer plain, traditional one-prize online raffles.
No Basket Raffles.
No Queen of Hearts.
No Duck Races.
No Ball Drops.

Your supporters feel pressured.
Your organization risks unexpected fees.

3. Upfront Low-Cost Plans (Our Model)

Chance2Win’s Premium Low-Cost Online Raffles Pricing Has Always Been Built on a Simple Philosophy:

Transparent pricing. Lower-than-industry-average cost.
No gimmicks. No guilt. No surprises.

Because nonprofits told us they wanted a model they could control, we built flexibility in from the start with our Premium Low Cost model:

• You buy the raffle website upfront at a simple, predictable cost
• You can connect Authorize.net, Square, or Stripe
• You decide whether supporters see a service charge
• You keep control of your donor experience

And based on our data, this model continually performs the strongest for organizations serious about maximizing results. And for those who don’t have the ability to pay up front, we offer the Zero Fee option which has a 12% donor paid service fee.

The Data: What Service Charges Really Do to Donor Behavior

With 20 years of data, we’ve seen how service charges affect donor purchase decisions. Here’s what actually happens:

0% – 8% Added Service Fee

💡 No negative impact on donor behavior.
Supporters buy tickets at almost the exact same rate as when no fee exists.

Why?
Because nearly every online purchase today—movie tickets, sporting events, concerts, parking apps, etc.—comes with a small service fee. Donors expect it.

8% – 12% Added Service Fee

📉 Slight hesitation: ~0.5% of donors abandon checkout.
This is extremely minor—maybe 1 in 200 supporters.

Still a strong performance range. Chance2Win’s Zero Fee Fundraising falls into this category.

12% – 15% Added Service Fee

⚠️ Significant drop-off begins.
Depending on the cause and emotional connection, we’ve seen:

• 1 in 20 to 1 in 100 donors exit at checkout

Grandparents supporting a PTA fundraiser tend to push through.
General-purpose online raffles? Much more sensitivity.

Above 15%

🚨 Catastrophic abandonment rates.
At a 20% service charge, the fallout can be 10% – 25% of all orders.

To put it bluntly:
This is the “please don’t do this” zone.

Why Upfront Pricing Works Better Long-Term

Organizations Using Our Low-Cost Online Raffles Model Often Raise More—not Just Because Fees Are Lower, but Because of Something We’ve Seen for Years:

When nonprofits have a little skin in the game, they run better fundraisers.

You put more effort into promotion.
You add better prizes.
You push harder to see ROI.

The result?

🔥 Higher revenue.
🔥 Happier supporters.
🔥 Better long-term engagement.

And with our typical pricing breakdown:

• ~3.7% platform cost (average)
• ~3% credit card fees (including per-transaction)

…your total blended cost stays way below the market’s standard 8%+ Credit Card fees pricing—and without ever forcing donors into guilt-based tipping prompts.

And if you still want to go with the ZERO FEE option, Chance2Win customers see minimal abandonment with our donor supported service charge.

The Bottom Line: Fair Pricing Wins

After tens of thousands of online raffles, here’s what we know for sure:

• Free isn’t free if donors feel guilted into tipping
• 8%+Credit Card fees are unnecessarily high
• High service charges kill checkout
• Stability, clarity, and fairness outperform everything else
• And real customer support (with a real phone number) makes all the difference

Chance2Win’s pricing was designed from the ground up to:

• Be lower than the industry
• Give nonprofits control
• Avoid donor resentment
• Keep the experience simple and trustworthy

Because when your supporters trust the process, your fundraiser performs better.