An Introduction to Classy Mode

Last Updated: Dec 20, 2018 03:20PM PST

Classy Mode is a unique feature that allows supporters to increase their gifts to help cover your costs. Rather than automatically increase the gift size to cover fees, Classy gives you the option to customize the amount that supporters can pitch in. We understand that everyone's goals may not be the same, so we chose to empower organizations to make the final decision. 

In this article, we provide a general overview of Classy Mode including what it is and how it works:

  1. What is Classy Mode
  2. How does it Work
  3. Classy Mode FAQ
 

What is Classy Mode?

Classy Mode is a feature that allows supporters to increase their gifts to help cover your costs. The option to increase their gift is always up to the supporter, but we found that over 60% of supporters will opt to increase their gifts when given the choice. In any case, you have complete control over the amount that is added on to their donations.

How does it Work?

The most popular use of Classy Mode is to cover transaction fees. But it’s important to note that Classy Mode does NOT automatically calculate the amount that will cover 100% of your transaction fees. This is because of the nature of payment processor fees—they charge off gross donation amounts which means you will either cover more or less than 100% of the fees. (Note: the gross donation amount is the amount supporters can agree to pay).  

Instead, we made Classy Mode customizable to ensure that everyone could set the amount that works best for their organization. You can choose a Classy Mode percentage that adds on anywhere from 0% to 15% of the donation to the final amount that supporters give. This range covers every possible transaction fee amount when using Classy, and also offers flexibility so you can discover the optimal amount that your supporters are willing to pitch in. 

The Basic Math 

Classy Mode allows you to add a percentage of the initial donation to the gross amount—the amount a supporter can agree to pay.  For example, say you have a Classy Mode percentage of 5% and a supporter makes a $20 donation. If they agree to increase their gift by the 5%, they would end up paying $21. 

To help you understand, look to the math and explanation below. You can use the same equations to figure out what different Classy Mode percentages do. For example, a Classy Mode percentage of 10% would lead to a $22 gross donation amount. 

The Effect of Fees

When you set up your Classy Mode percentage, we recommend keeping your fees in mind. The best bet is to go up from your Classy Mode percentage to your payment processor fee percentage.  In addition, Classy Mode is percentage based which means a little extra math is necessary for figuring out how to cover flat fees (not percentage based).  It helps if we look at the example of WePay which has a $0.30 flat fee in addition to a 2.2% processor fee.You could simply increase your Classy Mode percentage to 7% which would mean $20.01 goes to your organization. Or you could decrease your Classy Mode percentage if you want supporters to only pitch in a small amount. You can use the equations above to discover your ideal Classy Mode percentage no matter which payment processor you use. 

Note: Since all transaction fees are connected to the gross amount, the extra penny is unavoidable. A percentage of 6.9% would lead to $19.99 going to your organization. Rounding up to 7% and netting more than 100% of the donation is the only way to cover all of your transaction fees. Classy Mode is designed to empower your organization to make a decision that best suits your needs. In that sense, we recommend discussing your goals with your team before setting a Classy Mode percentage. 

Classy Mode FAQ

Which Campaigns Include Classy Mode?

Classy Mode can be used with any campaign type on Classy. In addition, you can set up custom percentages for each of your campaigns or set an organization level percentage that applies to all of your campaigns. 

How Does Classy Mode Work With Discount Codes

If a supporter applies a discount code, the Classy Mode percentage is applied to the discounted amount —the amount after the discount code has been applied. 

For example, take a $20 ticket or registration with a 10% discount code. A Classy Mode percentage of 5% will apply to the discounted amount ($18) which means the supporter would pay $18.90.  

Can I Adjust my Classy Mode Setting at Any Time?

Yes, you can change your Classy Mode for a specific campaign or at the organization level at any time. That said, we don’t recommend switching the percentage for active campaigns—this can make reconciling payments a bit more difficult. But the option is available just in case you need to.

How do I calculate the intended donation from the gross amount?

If you want to find the initial donation amount, you can do so using the gross amount. Below we explain how:

  • Equation: 

    Gross Donation / (1 + Classy Mode Percentage)

Say you have a $105 gross donation amount and a 5% Classy Mode percentage. Plug them into the equation. 

  • $105 / (1 + 0.05)

    $100 is the initial or intended donation amount


Need extra guidance? Feel free to contact our Care Team

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