The Republican digital fundraising platform WinRed is dropping the fee it charges groups and candidates for its services as the GOP gears up to challenge the Democrats for control of Congress in 2022.
WinRed announced Thursday its new fee structure would save Republican candidates and political groups money on every dollar raised, ostensibly leaving more money to spend against the Democrats in midterm elections next year. Additionally, WinRed claims its cost adjustments are going to put the Democrats, long the leaders in digital fundraising, at a competitive disadvantage — because the GOP conduit now charges slightly less per dollar raised than does ActBlue, its online liberal counterpart.
“We are excited to announce that WinRed is lowering our prices,” said Gerrit Lansing, the organization’s president. “The best fundraising platform in politics will continue to expand and grow.”
Republicans were late to the digital fundraising gold rush, with WinRed launching a little more than two years ago. ActBlue has been around since 2004, giving Democrats a major head start in a fundraising arena that has arguably become more important than collecting cash from wealthy contributors and bundlers. Since June of 2019, WinRed has processed nearly $2.5 billion in donations. Over 17 years, ActBlue has processed more than $9 billion.
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WinRed is moving from a cost structure that charges candidates and groups 3.8% of every dollar raised plus a flat, per-transaction fee of 30 cents, to a simple levy of 3.94% against every dollar raised. With the average contribution on the conduit amounting to $35 to $40, WinRed officials estimate clients will save 15% per donation in fees.
Meanwhile, WinRed claims it is saving clients even more because, unlike ActBlue, it does not solicit the small-dollar, grassroots donors who use its portal to raise money for itself. WinRed claims these solicitations by ActBlue scoop up money that would otherwise go to candidates and groups, drying up donors in the process. In this way, the Republican platform believes its clients have yet another leg up on their Democratic competitors.
ActBlue, a nonprofit organization, explains the process and where the money goes much differently.
The group describes soliciting money for itself as “tipping,” saying on its website it uses these donations to pay its bills while redistributing the 3.95% fee it charges on every dollar raised back to clients.
“We want as many campaigns and organizations on the left to be able to use our grassroots fundraising tools as possible, which is why there is no cost for groups to use our tools,” ActBlue’s website says.
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“We pass along a 3.95% processing fee on contributions to the groups using our platform. ActBlue does not make money off of donations,” the ActBlue website adds. “Completing a contribution involves costs related to processing your credit card. We’re legally required to pass along processing costs to the campaign so that we do not make in-kind contributions to them.”
ActBlue declined to comment.
