The layers of cost behind a crowdfunding campaign
Crowdfunding fees in India are the amounts that a platform, a payment gateway and the tax system take out of contributions before the rest reaches the person or organisation that raised the funds. The headline claim of a platform is often a zero platform fee, but this is only one layer, and the amount finally received can be lower than the amount shown on the campaign page.
Three layers are common. The platform may charge nothing, a flat sum or a percentage of what is raised. A payment gateway charges for processing UPI, card and net banking payments. Goods and services tax is then added on the platform’s service and on the processing charge. A campaigner who looks at only one of these will misjudge the real cost.
A fourth item sometimes appears on the donor’s side. Some platforms invite contributors to leave a voluntary tip for the platform, which supports a zero fee on the campaigner’s side without changing what the donor pays in total. Tips are optional and a donor can usually decline.
Why the same campaign can yield different amounts
Two campaigns that raise the same headline sum can end with different amounts in the bank, depending on the plan chosen, the payment method used by donors and whether an admin fee applies. Reading the fee table before starting is cheaper than finding out afterwards.
Crowdfunding fees in India: the published plans of ImpactGuru and Ketto
ImpactGuru published a plan table on 13 January 2026 and updated it on 17 January 2026. Its Self-Driven plan carries a platform fee of 0 per cent, the Assisted plan 3 per cent, the Elevate plan 5 per cent and the Co-pilot plan 8 per cent. A payment gateway charge of about 3 per cent applies to UPI, debit and credit card payments, and a one-time admin and due-diligence fee of INR 3,000 plus GST is listed. GST is quoted at 18 per cent on service and processing charges.
Ketto lists a Bronze plan at no fee, a Silver plan at 5 per cent and a Gold plan at 7 per cent, charged as a success fee on the amount actually collected. It adds a payment gateway fee of 3 per cent for local and foreign payments, with 18 per cent GST on top of both the fee and the gateway charge. The Bronze plan applies to fundraisers started on or after 15 August 2020, and Ketto says that it may change its pricing at any time.
A quick calculation shows the effect of a Ketto Silver campaign, as an illustration only. On INR 1,00,000 collected, a 5 per cent success fee is INR 5,000 and a 3 per cent gateway fee is INR 3,000. Added together, that is INR 8,000, and 18 per cent GST on that sum comes to INR 1,440, so total deductions would be INR 9,440 and about INR 90,560 would remain. Real figures depend on the current terms.
These are tables as published on the dates mentioned. Since pricing can change, a campaigner should check the live page on the day of launch.
Milaap, Fueladream and claims of zero fees
Milaap’s pricing page states that no fee is charged on donations received and that there are no upfront or fixed fees. Its terms of use then explain that Milaap and the payment gateway deduct fees and applicable taxes before the funds reach the campaigner, so a campaigner should ask for the exact rates in writing. In October 2026 Milaap again stated the zero platform fee, said it is supported by optional donor tips, and added that gateway charges and taxes can still reduce the amount disbursed.
The terms name Razorpay, Stripe and PayPal as the payment gateways in use. The reader’s lesson is that a zero platform fee and zero deductions are not the same promise.
In a comparison published on 25 May 2026 and updated on 27 October 2026, ImpactGuru stated a platform fee of zero for ImpactGuru, Ketto, Milaap and GiveIndia. Such a comparison by a competitor conflicts with Ketto’s own paid tiers, so it should not be taken as the last word on any platform. For Fueladream, ImpactGuru quoted INR 3,000 upfront plus a 6 per cent platform fee. Since that is a rival’s statement, a campaigner should ask Fueladream to confirm it in writing.
The platform’s own current fee page and terms of use should always prevail over any third-party figure.
Payment methods and gateway charges
Contributors in India usually pay by UPI, debit or credit card or net banking. Each route may pass through a gateway, and the cost to the platform becomes a cost to the campaigner. ImpactGuru quotes about 3 per cent for UPI, debit and credit card payments, and Ketto states 3 per cent for local and foreign payments. Claims that UPI is free for campaigns should be treated with caution, and a campaigner can ask the platform for its UPI cost in writing.
Some charities publish a lower figure for their own channels. One zakat platform says that bank transfers carry no platform charge, while payments through the Razorpay gateway cost between 1.5 and 2.5 per cent. It also states that donations are accepted only from Indian nationals and non-resident Indians using Indian bank accounts, and not through non-Indian cards or accounts.
Foreign contributions have extra rules. For Milaap campaigns created since 1 June 2025, funds paid in United States dollars may go only to the treating hospital against bills, to a GST-registered vendor against an invoice or to the account of a trust or NGO registered under the foreign contribution law, and never to a personal account. A campaigner expecting overseas supporters should read that condition before promising to accept their money.
Withdrawals and timelines
Raising a pledge and holding the money are different events. Milaap says withdrawals need a government identity proof and bank account details, followed by a transfer request. Its terms add that funds are released only after the campaign, the recipient’s identity and know-your-customer details, and supporting bills or estimates have been verified. Where required, the money is paid directly to the hospital, institution or vendor.
Time matters too. The same terms say that campaigns run for 25 days from publication and that contributions may take up to 45 days to reach the recipient. ImpactGuru quotes withdrawal times of 3 to 7 days for its Self-Driven plan, 2 to 7 days for Assisted and 12 hours to 5 days for Elevate, For the Co-pilot plan and for Ketto, a campaigner should ask the platform in writing for the withdrawal time.
A campaigner who needs money for a deadline, such as an admission or an operation date, should ask the platform in writing how long a withdrawal will take in that case. Quoted times are not guarantees.
Documents should be ready before the campaign ends. Aadhaar, PAN and bank proof usually cover the identity side, and mismatched names between the bank account and the ID are a frequent cause of delay.
Refunds and what happens to failed campaigns
Donations are generally treated as final. Under Milaap’s terms, a contribution that has cleared the payment gateway generally cannot be refunded. If a campaign is cancelled before funds are released, contributors are refunded within 15 working days, less gateway fees and taxes. Where a target is missed, contributors who chose a refund receive it, less the transaction fee.
The policy of a zakat platform is similar in spirit: refunds only for fraud or a cause cancelled before any disbursement, returned in 12 to 15 working days, and money unclaimed after 90 days going to similar causes in the next quarter. Check Ketto’s refund policy on its own website, and do not assume the same rule applies on other platforms.
A donor should therefore not assume that a change of mind earns a refund. Before giving a large sum, check the refund wording, ask whether the money is held until the target is met and keep the payment receipt.
Complaints about a failed refund can be raised first with the platform’s grievance contact and, if the matter involves a bank or a card, with the bank. Records of dates, reference numbers and messages make that process quicker.
Tax on fees and on money received
Fees are not the only tax issue. Under Milaap’s terms, tax deduction certificates are issued by the recipient only for the amount actually received after deductions. A donor who gave INR 10,000 may therefore receive a certificate for less if fees were taken first, where the donor’s gift is eligible at all. Tax deduction under section 80G, now carried forward as section 133 of the Income-tax Act 2025, depends on the receiving charity holding valid approval.
A campaigner should ask the platform in writing whether tax is deducted at source on payouts. Gifts without consideration above INR 50,000 in a financial year can be taxable for an individual. A chartered accountant can say how a particular campaign should be reported.
Campaigners should keep a clear file: the fee page as it stood at launch, the statement of deductions, the withdrawal confirmations and the receipts issued. If a platform’s charges seem different from those published, this file supports a query.
Households that follow Islamic finance principles should note that fee-bearing intermediaries do not change the status of a gift by themselves. Whether a particular arrangement, including a success-fee model, is acceptable is a question for a qualified scholar or Sharia adviser.