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Republican campaign fundraising platform WinRed switches up fee structure for its pound of flesh to process smaller contributions

“WinRed, the GOP’s principal small-dollar donation processor, is lowering the fees it charges candidates and committees for each contribution they receive through the platform. The shift – which follows months of behind-the-scenes deliberations involving the party’s most senior officials – could result in millions of dollars more being funneled into campaign coffers next year. Under the new plan, which WinRed President Gerrit Lansing outlined in a memo sent to senior Republicans this week, the platform will charge a flat 3.94 percent fee per donation. Until this point, the for-profit outfit had been charging 3.8 percent per contribution, plus another 30 cents” Politico reports.

Quick back of the napkin calculation: In 2020, the average small-dollar donation to any given Democratic candidate via ActBlue (the Dem original from which the idea for WinRed was copied) was $35 and, assuming Republicans’ was similar, at 3.8% plus 30 cents the nick is $1.66. At a flat 3.94% the processing fee comes to $1.38. The delta between the 3.8% plus 30 cents and the 3.94% closes at roughly about $215 per contribution and only at higher amounts does the new fee structure cost more than the old one. Not having to pay 30 cents every time someone donates $10 or $20 to the campaign is probably going to be a big shift for a lot of candidates next year. They’re even very slightly undercutting ActBlue, who charge Dem candidates 3.95% per transaction.

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