Fractured Atlas takes a 8% administrative fee on all donations, with no additional fees for processing credit cards.
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🤔 Why do you have an admin fee?
This fee covers all costs associated with administering your fiscal sponsorship - including website maintenance, staff time, and bank fees. The fee also potentially represents a significant discount for smaller arts organizations in that, unless you have automated systems in place and dedicated staff to handle your accounting, the cost of tasks such as maintaining your 501(c)(3) status with the IRS and issuing tax receipts to donors can often eat up more than 8% of any given donation.
🧮 How the admin fee is calculated
The administrative fee is assessed on the total funds that come into Fractured Atlas. When a donor wishes to cover the fees, the total donation amount needed to cover the fee is calculated by taking the intended donation and dividing that by 92% (or .92).
To illustrate with an example, if a total contribution of $100 is received by Fractured Atlas, $8 covers the 8% fee and $92 (92% of the total) is allocated to the project’s fund balance. However, if a donor wishes to cover the fee and would like the project to receive $100, the total donation needed to cover the fee is $108.70. In this case, $8.70 covers the 8% fee and $100 (92%) is allocated to the project’s fund balance.
📢 An important note about fees
In cases where Fractured Atlas is charged a fee by a vendor that is associated with your fund, we must pass that fee along to you. (An example of this would be a returned check fee.) Our staff will contact you if a situation like this occurs. Also, in certain cases, we may need to charge additional fees related to grants administration.
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