Fee Structure and Technical Implementation - Give Protocol Documentation

This document provides detailed information about Give Protocol’s fee structure, including calculation methods, technical implementation, and integration guidelines for developers.

Overview

Give Protocol implements a transparent and competitive fee structure designed to maximize the funds reaching charitable organizations while ensuring platform sustainability.

Fee Philosophy

Transparency First: All fees clearly disclosed
Competitive Rates: Lower than traditional payment processors
No Hidden Costs: What you see is what you pay
Value-Based: Fees reflect the value provided

Fee Categories

1. Platform Fees

Standard Platform Fee: 2.5%

Applied to all donations
Covers platform operations
Includes basic features
No monthly minimums

Reduced Fee Tiers:

Bronze (>$10K/month): 2.25%
Silver (>$50K/month): 2.0%
Gold (>$100K/month): 1.75%
Platinum (>$500K/month): 1.5%

2. Payment Processing Fees

Credit/Debit Cards:

Base Rate: 2.9% + $0.30 per transaction
International Cards: +1.5%
Currency Conversion: +1%

Bank Transfers (ACH):

Flat Fee: $0.50 per transaction
No percentage fee
3-5 business day processing

Cryptocurrency:

Network Fees: Variable (paid by sender)
Conversion Fee: 1% (if converting to fiat)
No platform markup on network fees

3. Additional Service Fees

Optional Services:

Instant Payouts: $2.00 per transfer
International Wire: $25.00 per transfer
Chargeback Handling: $15.00 per incident
Custom Reporting: $50.00/month
API Premium Access: $100.00/month

Fee Calculation

Standard Donation Example

// Donation amount: $100.00
// Payment method: Credit Card
// Organization tier: Standard

const donation = 100.0;
const platformFee = donation * 0.025; // 2.5% = $2.50
const processingFee = donation * 0.029 + 0.3; // 2.9% + $0.30 = $3.20
const totalFees = platformFee + processingFee; // $5.70
const netToCharity = donation - totalFees; // $94.30

Cryptocurrency Donation Example

// Donation amount: 0.01 BTC (~$450)
// Conversion to USD requested
// Network fee: Paid by sender

const btcAmount = 0.01;
const usdValue = btcAmount * 45000; // $450
const conversionFee = usdValue * 0.01; // 1% = $4.50
const platformFee = usdValue * 0.025; // 2.5% = $11.25
const totalFees = conversionFee + platformFee; // $15.75
const netToCharity = usdValue - totalFees; // $434.25

Technical Implementation

Fee Calculation API

Endpoint: POST /api/v1/fees/calculate

Request:

{
  "amount": 100.0,
  "currency": "USD",
  "payment_method": "card",
  "organization_id": "org_123abc",
  "options": {
    "instant_payout": false,
    "convert_crypto": true
  }
}

Response:

{
  "breakdown": {
    "donation_amount": 100.0,
    "platform_fee": 2.5,
    "processing_fee": 3.2,
    "additional_fees": 0.0,
    "total_fees": 5.7,
    "net_amount": 94.3
  },
  "rates": {
    "platform_rate": 0.025,
    "processing_rate": 0.029,
    "processing_fixed": 0.3
  },
  "organization_tier": "standard"
}

Fee Models

Database Schema:

CREATE TABLE fee_structures (
  id UUID PRIMARY KEY,
  name VARCHAR(50) NOT NULL,
  platform_rate DECIMAL(5,4) NOT NULL,
  min_monthly_volume DECIMAL(10,2),
  max_monthly_volume DECIMAL(10,2),
  created_at TIMESTAMP DEFAULT NOW(),
  updated_at TIMESTAMP DEFAULT NOW()
);

CREATE TABLE transaction_fees (
  id UUID PRIMARY KEY,
  transaction_id UUID REFERENCES transactions(id),
  fee_type VARCHAR(20) NOT NULL,
  amount DECIMAL(10,2) NOT NULL,
  rate DECIMAL(5,4),
  fixed_amount DECIMAL(10,2),
  created_at TIMESTAMP DEFAULT NOW()
);

Fee Collection Flow

sequenceDiagram
  participant Donor
  participant Platform
  participant Payment
  participant Organization

  Donor->>Platform: Initiate donation
  Platform->>Platform: Calculate fees
  Platform->>Donor: Show fee breakdown
  Donor->>Payment: Authorize payment
  Payment->>Platform: Process full amount
  Platform->>Platform: Deduct fees
  Platform->>Organization: Transfer net amount

Integration Guide

SDK Implementation

JavaScript SDK:

import { GiveProtocol } from "@give-protocol/sdk";

const give = new GiveProtocol({
  apiKey: "your_api_key",
});

// Calculate fees before donation
const feeBreakdown = await give.fees.calculate({
  amount: 100,
  paymentMethod: "card",
  organizationId: "org_123",
});

// Create donation with fee coverage option
const donation = await give.donations.create({
  amount: 100,
  coverFees: true, // Donor covers fees
  organizationId: "org_123",
  paymentMethod: "card",
});

Python SDK:

from give_protocol import GiveProtocol

give = GiveProtocol(api_key='your_api_key')

# Calculate fees
fee_breakdown = give.fees.calculate(
    amount=100,
    payment_method='card',
    organization_id='org_123'
)

# Create donation
donation = give.donations.create(
    amount=100,
    cover_fees=True,
    organization_id='org_123',
    payment_method='card'
)

Webhook Events

Fee-Related Events:

{
  "event": "fee.calculated",
  "data": {
    "donation_id": "don_abc123",
    "amount": 100.0,
    "fees": {
      "platform": 2.5,
      "processing": 3.2,
      "total": 5.7
    }
  }
}

Fee Coverage Options

Donor Fee Coverage

Organizations can enable donors to cover fees:

// Implementation example
const donationWithCoveredFees = {
  baseAmount: 100.0,
  fees: 5.7,
  totalCharge: 105.7,
  netToCharity: 100.0,
};

Organization Absorption

Organizations can choose to absorb fees:

// Configuration
{
  "organization_settings": {
    "absorb_platform_fees": true,
    "absorb_processing_fees": false
  }
}

Special Considerations

Nonprofit Discounts

Eligibility Requirements:

Valid 501(c)(3) status
Annual revenue under $1M
Application approval

Discount Structure:

50% off platform fees
Reduced to 1.25% base rate
Same processing fees apply

High-Volume Processing

Benefits:

Negotiated rates
Dedicated support
Custom integration
Priority processing

Requirements:

Minimum $100K monthly volume
6-month commitment
Annual review

International Transactions

Additional Considerations:

Currency conversion fees
Cross-border fees
Local tax implications
Regulatory compliance

Fee Reporting

Monthly Statements

Included Information:

Transaction-level fee details
Summary by fee type
Tier progression tracking
Year-to-date totals

API Access

Reporting Endpoints:

GET /api/v1/fees/report?start_date=2024-01-01&end_date=2024-01-31
GET /api/v1/fees/summary?period=monthly
GET /api/v1/fees/export?format=csv

Tax Documentation

Available Documents:

Fee receipts
Annual summaries
1099-K forms (if applicable)
Detailed transaction logs

Optimization Strategies

Reducing Fees

Increase Monthly Volume
- Reach higher tiers
- Batch processing
- Consolidated campaigns
Payment Method Selection
- Encourage ACH transfers
- Promote recurring donations
- Offer crypto options
Timing Strategies
- Monthly vs. daily payouts
- Bulk processing
- Strategic timing

Implementation Best Practices

// Optimize for lower fees
const optimizeDonation = async (amount, options) => {
  // Check if ACH is available for lower fees
  if (amount > 100 && options.achAvailable) {
    return {
      method: "ach",
      fee: 0.5,
      savingsMessage: "Save $5.20 by using bank transfer",
    };
  }

  // Suggest fee coverage for full donation impact
  if (!options.coveringFees) {
    const fees = calculateFees(amount, "card");
    return {
      suggestion: `Add ${fees} to cover fees?`,
      impact: "Ensure 100% goes to charity",
    };
  }
};

Compliance and Regulations

PCI Compliance

Level 1 PCI DSS certified
Secure fee calculation
Encrypted transmission
Regular audits

Financial Regulations

FinCEN registered
State money transmitter licenses
GDPR compliant
SOC 2 Type II certified

Support and Resources

Developer Resources

API documentation: developers.give.io/fees
SDK examples: github.com/give-protocol/examples
Integration support: dev-support@give.io

Fee Questions

General inquiries: fees@give.io
Tier upgrades: accounts@give.io
Technical issues: support@give.io

Additional Resources

Fee calculator tool
Integration testing
Sandbox environment
Webhook testing