If you’ve ever worked with a nonprofit, you know that every dollar matters. When someone gives to your cause, you want that money to go where it belongs — not eaten up by transaction fees or platform costs. For years, this has been one of the most frustrating parts of online fundraising. Donors give generously, but a slice gets shaved off by the platform or the payment processor. That’s why when I first came across Zeffy, I was intrigued. The company claims to be 100% free for nonprofits. No hidden transaction fees, no monthly charges. It sounded almost too good to be true.
I’ve since looked into Zeffy from multiple angles: how it works, what people say about it, and how it compares to other fundraising platforms. In this guide, I’ll walk you through everything I’ve learned. Whether you’re part of a small community nonprofit or a larger charity, my goal is to help you figure out if Zeffy is the right fit for your fundraising needs.
What Is Zeffy?
Zeffy is an online fundraising platform built specifically for nonprofits. Unlike many platforms that take a cut of donations, Zeffy doesn’t charge nonprofits a cent. Instead, they rely on an optional tip model: when a donor makes a contribution, Zeffy suggests that the donor leave a small “tip” to support the platform. That tip is how Zeffy pays its bills and keeps the lights on.
Zeffy started in Canada and has expanded into the United States. Their mission is straightforward: to help nonprofits keep more of the money they raise. The company offers tools for donations, event ticketing, membership management, auctions, peer-to-peer fundraising, and even in-person payment options. Essentially, it’s designed as an all-in-one fundraising solution.
The promise is appealing, especially for small nonprofits that don’t have the budget for expensive software subscriptions or the stomach to watch 3% of every donation disappear into fees.
How Zeffy Works Behind the Scenes
Here’s where most people have questions. How can Zeffy actually afford to be free? The answer lies in the tipping model.
When someone donates through a Zeffy form, they’re shown a box that suggests leaving an additional amount as a tip to Zeffy. The donor can adjust it, lower it, or even set it to zero. But many donors choose to leave something, usually a few dollars or a small percentage of their donation.
For example, if I donate $50 to a local animal shelter, I might see a suggestion to add a $3 tip to Zeffy. I can say yes, no, or change the amount. If I say yes, the shelter still gets the full $50, and Zeffy gets the $3.
From a sustainability standpoint, this model works because enough donors are willing to pitch in. It’s the same idea that powers platforms like Wikipedia (with donations) or some apps that run on a “pay what you want” system.
On the technical side, Zeffy uses Stripe for payment processing. That means your organization has to set up and verify a Stripe account to receive funds. Once donations come in, payouts are deposited directly into your nonprofit’s bank account on a regular schedule.
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Features and Capabilities
Zeffy isn’t just about being free. It also comes with a solid set of tools that cover most of what nonprofits need. Here are the highlights:
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Donation Forms – You can create branded donation forms and embed them on your website. Donors can give one-time or recurring gifts.
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Event Ticketing – If you’re hosting a gala, fundraiser dinner, or community event, you can sell tickets online. Again, no fees are taken out.
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Peer-to-Peer Campaigns – Supporters can create their own fundraising pages on behalf of your organization, helping you reach more people.
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Membership and Auctions – For groups that run memberships or charity auctions, Zeffy provides those tools too.
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CRM and Donor Management – The platform includes basic donor tracking, segmentation, and reporting features. It’s not as advanced as dedicated CRMs, but for many nonprofits, it’s more than enough.
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Automated Tax Receipts – Zeffy automatically generates and emails tax receipts to donors, which saves a lot of administrative work.
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In-Person Payments – In the US, Zeffy has added Tap-to-Pay on iPhone, which allows you to accept donations or payments in person without extra hardware.
Taken together, this suite of features makes Zeffy more than just a “free PayPal alternative.” It’s a platform that covers nearly all the bases for digital fundraising.
Costs and the “Free” Model Explained
The word “free” can make people suspicious, and honestly, I don’t blame them. When I first heard about Zeffy, my immediate thought was: what’s the catch?
Here’s the truth. Zeffy is free for nonprofits. You will never see platform fees, transaction fees, or subscription charges. The donor’s full gift goes to your organization.
The only money Zeffy collects is through tips from donors. If donors stop tipping, Zeffy doesn’t get paid. That’s the risk they take.
For nonprofits, this model is a win, but there are two things to be aware of:
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Donor Confusion – Some donors don’t understand why they’re being asked to tip a platform and may find it odd or even off-putting. It’s important for nonprofits to be transparent when explaining it.
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Sustainability Concerns – Since Zeffy relies on tips, some people wonder if the model is sustainable long term. So far, it seems to be working, but it’s something to keep in mind.
In practice, most nonprofits I’ve spoken to say the donor tip system hasn’t caused major problems, and donors generally like the fact that their entire gift goes to the cause.
Pros and Strengths of Zeffy
Based on my research and feedback from users, here are the biggest advantages of using Zeffy:
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No fees – This is the obvious one. Keeping 100% of donations is a game-changer for smaller organizations.
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Easy setup – Creating forms and campaigns doesn’t require technical skills.
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All-in-one solution – Donations, events, memberships, and donor management in one platform.
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Good donor experience – The forms are clean, mobile-friendly, and quick to complete.
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Transparency – Nonprofits can proudly tell donors that every dollar goes to the cause.
Cons and Limitations
No platform is perfect. Here are some drawbacks:
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Only available in the US and Canada – If you’re outside those regions, Zeffy won’t work for you.
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Less advanced customization – While the tools are solid, they don’t match the deep customization options of higher-end platforms.
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Reliance on tipping – If tipping behavior changes, it could affect Zeffy’s sustainability.
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Donor confusion – Some donors don’t like the tip screen and might think the nonprofit is charging them extra.
These aren’t deal-breakers for most small and mid-sized nonprofits, but they’re worth considering.
Zeffy vs Alternatives
How does Zeffy stack up against other platforms?
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Zeffy vs Donorbox – Donorbox charges fees plus Stripe’s processing fee. Zeffy is free. Donorbox, however, has more advanced integrations and customization.
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Zeffy vs GoFundMe – GoFundMe is more of a personal crowdfunding tool. Zeffy is tailored to nonprofits, with tax receipts and memberships built in.
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Zeffy vs Classy – Classy is robust but pricey. Zeffy is leaner but free.
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Zeffy vs PayPal Donations – PayPal is widely known, but it charges fees and lacks the nonprofit-specific features Zeffy offers.
If your main concern is saving money, Zeffy usually wins. If you need enterprise-level tools or global reach, you might need something else.
How to Get Started with Zeffy
The onboarding process is fairly simple:
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Sign up on Zeffy as a nonprofit.
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Verify your nonprofit status (charity number, tax ID, etc.).
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Connect a Stripe account and link your bank account.
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Create your first donation form or event.
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Embed it on your site or share the link.
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Start collecting donations.
The learning curve is minimal, which is one of the reasons small nonprofits love it.
Tips to Maximize Results
Here are a few lessons I’ve picked up from people using Zeffy successfully:
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Explain the tipping model – Let donors know that their gift goes fully to your cause, and tips are optional support for the platform.
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Keep donation forms simple – Fewer clicks equals more donations.
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Encourage recurring giving – Zeffy makes this easy, and recurring donors are your lifeblood.
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Use peer-to-peer campaigns – They’re a great way to extend your reach.
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Monitor donor behavior – Look at how many people leave tips. If tipping is low, you might adjust your messaging.
Real User Feedback
On review sites like G2, Zeffy generally gets high marks. Nonprofits praise the fact that they get to keep all their funds. Many say the platform is easy to use and saves them hours of admin work.
That said, some reviews point out limitations in customization and occasional donor confusion around tips. A few users also wished for deeper integrations with other nonprofit tools.
Overall, the feedback is positive, especially from small to mid-sized nonprofits that value cost savings.
When Zeffy Might Not Be Right for You
Zeffy won’t fit everyone. If your nonprofit is outside the US or Canada, you’ll need another option. If you need very advanced customization or deep data integrations, Zeffy might feel limiting. And if your donors strongly dislike the tipping model, you may want to consider alternatives.
Future Outlook
The big question for Zeffy is whether its tipping model will hold up long term. So far, it seems to be working. If anything, the popularity of the platform is proof that nonprofits are hungry for fee-free solutions. My guess is that Zeffy will continue to grow, especially as more nonprofits look for ways to cut costs.
Conclusion
Zeffy is a refreshing entry into the fundraising software space. It strips away the fees that have long frustrated nonprofits and offers a clean, functional platform for online giving. While it’s not perfect and has some limitations, its value is undeniable.
If you’re a nonprofit in the US or Canada and you want to keep every dollar of your donations, I’d recommend giving Zeffy a try. Start with a small campaign, see how donors respond, and build from there. In my opinion, the benefits far outweigh the downsides.
FAQ
Is Zeffy really free?
Yes. Nonprofits pay nothing. Donors can leave an optional tip to support Zeffy.
Who can use Zeffy?
Registered nonprofits and charities in the US and Canada.
What happens if donors don’t tip?
Zeffy still gives you 100% of the donation. Zeffy simply makes less money.
Can I use Zeffy outside the US/Canada?
Not currently.
Is Zeffy secure?
Yes. Payments are processed through Stripe, a widely trusted processor.
How do payouts work?
Donations are transferred to your nonprofit’s bank account through Stripe, usually on a weekly schedule.
Can I switch from another platform to Zeffy?
Yes, you can migrate your donation forms and start using Zeffy alongside or instead of your old system.
