This section outlines the financial considerations that must be addressed in vendor proposals. A clear, transparent breakdown of all costs associated with the proposed digital giving platform is critical for evaluating total financial impact, budgeting accurately, and assessing overall value. Vendors are expected to offer a comprehensive, well-structured commercial proposal that reflects their pricing model, total cost of ownership, and potential ROI over time. Clear delineation of one-time versus recurring costs and any relevant assumptions is essential.
💡 Detailed Cost Breakdown (Setup, Ongoing, Transaction, Training)
Vendors must provide a detailed cost breakdown for all aspects of their solution. All costs should be clearly labeled as either one-time or recurring, and must include:
- One-time implementation/setup fees.
- Ongoing costs, such as monthly or annual platform subscriptions, per-user fees, or account maintenance costs.
- Payment processing-related fees, including both platform transaction costs and payment processor transaction costs.
- Training and documentation expenses.
- Fees for any additional services, such as increased user logins, engagement credits, or professional service hours.
- Disclosure of any potential hidden or conditional costs.
Pricing must be transparent and based on clearly stated assumptions, such as expected transaction volume, number of active users, or number of designations/forms. If multiple packages or platform configurations are proposed, each option must have its own cost structure.
“We’re a mid-sized nonprofit with ambitious goals and limited resources—knowing the true cost up front helps us avoid surprises and prioritize investment in what matters.”
📊 Pricing Model Structure
The vendor must explain their pricing model structure, which may vary depending on platform features and organizational size. Common pricing frameworks include:
- Per EIN or entity-based
- Volume-based, such as number of records, transactions processed, or fundraising totals
- User-based, such as by admin seats or active donor accounts
- Hybrid models, combining the above
The structure should be explained clearly so our team can compare apples-to-apples across proposals.
📈 Total Cost of Ownership & ROI
Vendors should provide a projection of the Total Cost of Ownership (TCO) over a multi-year period (typically 3 or 5 years). This should include:
- All direct costs from setup through ongoing support
- Estimated savings from consolidating systems or increasing operational efficiency
- Projected benefits in terms of staff time saved, donor retention, or revenue lift
When possible, include an estimated Return on Investment (ROI) based on industry benchmarks or the vendor’s work with similar organizations.
“We want to understand the true cost over five years and the potential payoff if we’re successful—especially if it means fewer tools, stronger engagement, and better data.”
💝 Nonprofit Considerations
As a nonprofit, we encourage vendors to provide information on any available discounts, special pricing tiers, or in-kind support for nonprofit clients. These considerations can meaningfully impact our decision and are a welcomed sign of partnership.
| Requirement Area |
Description |
| Detailed Cost Breakdown |
Vendors must provide a comprehensive breakdown of all associated costs, clearly identifying which are one-time versus recurring. This includes fees for setup and implementation, ongoing subscriptions and licenses, payment processing (both platform and processor-specific), training and documentation, and any additional services such as logins or credit-based features. Vendors should also disclose any hidden, conditional, or usage-based pricing to ensure transparent comparison.
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| Pricing Model Structure |
The pricing model should be clearly defined and structured in a way that aligns with how nonprofits typically operate. Examples may include pricing based on a single organizational entity (such as per EIN), volume-based models that scale with the number of transactions or donor records, and user-based pricing that charges by number of admin users or seats. Hybrid or tiered models that combine multiple pricing strategies should be fully explained, with use-case clarity for when each applies.
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| Total Cost of Ownership + ROI |
Vendors should provide a multi-year view—ideally 3 to 5 years—of the total cost of ownership and projected return on investment (ROI). This should factor in all direct and indirect costs, as well as any expected savings from system consolidation, automation, or other efficiencies. The ROI estimate should be grounded in common nonprofit outcomes such as cost per donation, revenue growth, or staff time saved, based on typical organizational inputs.
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| Nonprofit Discounts + Considerations |
Vendors are encouraged to offer nonprofit-specific accommodations that reflect the unique constraints and missions of the sector. This may include tiered pricing or special discounts for nonprofits, the ability to contribute in-kind value such as waived fees, and flexible pricing models that accommodate mission-based organizations operating at different scales.
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