Seven crowdfunding and donation platforms in the Netherlands have agreed to provide clearer information about the fees they charge, following action by the Dutch consumer authority ACM.
The platforms—Doneeractie, Doneerveilig, Geef.nl, Getfunded, GoFundMe, Steunactie, and Whydonate—will improve transparency around deductions, including value-added tax (VAT), to ensure users understand where their money goes.
The ACM found that many platforms were not sufficiently clear about how much of each donation they retained.
This lack of transparency often left fundraisers unaware of the fees deducted from contributions, resulting in disappointment when the final amount received was less than expected.
Under Dutch regulations, online service providers, including crowdfunding platforms, must provide detailed pricing information before a campaign begins.
The platforms’ agreement to disclose fees more openly aims to help fundraisers make informed choices and compare services effectively.
This transparency is crucial for individuals raising money for urgent needs, such as medical treatments or charitable causes, who want to ensure the maximum amount of funds reaches their intended goal.
Each platform’s fee structure varies. GoFundMe, for example, charges a processing fee of 2.9% per donation, along with a transaction fee of €0.25 or €0.30. A campaign raising €500 from five donors on GoFundMe would result in a net payout of €484.
GetFunded charges a 7% fee on each donation, plus €1.15 for payments processed via iDeal. These deductions can significantly affect the total amount received by fundraisers, making transparency essential for informed decision-making.
The ACM has stressed that compliance with these transparency requirements is mandatory under Dutch law.
The authority plans to monitor the platforms closely to ensure they honor their commitments and maintain clear communication about fees. Failure to comply may result in further regulatory action.
This initiative is expected to enhance trust in the crowdfunding sector and protect consumers from unexpected costs. By understanding fee structures upfront, fundraisers can select platforms that offer the best value and ensure more money reaches the causes they support.
