How Nonprofits Avoid Raising Rates, Even When Costs Go Up

Rising operational costs are nothing new for nonprofits but today’s economic pressures feel especially intense. From payroll and insurance hikes to facility maintenance and technology investments, the cost of doing mission-driven work is increasing. Yet raising member dues is often off the table.

For many community organizations, especially YMCAs, JCCs, and recreation centers, member affordability is a core value. That’s why more nonprofit leaders are turning to a third option: Flex Fees.

Nonprofits today are navigating a perfect storm:

• Inflation is up, but revenue is not.
• Members are more cost-conscious, especially those on scholarships.
• Boards are cautious, urging restraint around rate increases.
• Staff are stretched, facing high expectations and tight budgets.

Traditionally, the only levers to pull have been raising dues or cutting programs, neither of which aligns with your mission or your community’s needs.

Flex Fees offer a new path forward. Rather than increasing rates across the board, these small, clearly disclosed fees are added only to certain payment methods, like credit cards. Members are made aware of the fee during checkout and are offered an alternative like ACH or debit if they prefer to avoid it.

The result? Your organization can offset processing costs, recapture lost revenue, and reinvest in core services without adding friction to your member experience.

Some nonprofit leaders worry: “Will members push back on this?” The data says no. Organizations that have adopted Flex Fees report:

• No measurable increase in cancellations
• No decline in member satisfaction
• Improved ability to plan budgets with confidence

Because the fee is optional by payment method, and not a hidden or mandatory charge, members feel empowered, not penalized. It’s a clear, values-driven conversation: “You choose how to pay. We use the savings to serve more people.”

One of the most powerful features of Flex Fees? Configuration control. Your organization decides how to apply it, including:

• Excluding scholarship recipients
• Capping the fee at a specific percentage
• Choosing which payment method it applies to

This ensures the fee is never a barrier to access and your most vulnerable members continue to be protected.

You don’t need a technical team to launch Flex Fees. With Daxko’s integrated platform and implementation support, most organizations are up and running in days. Your staff gets the templates, FAQs, and visual examples they need to communicate clearly with members. You get data-backed tools to track the impact.

The outcome? More predictable revenue. Less staff burnout. And the ability to serve your community more fully.

It’s possible to grow without raising rates, cutting services, or compromising on your mission.

Use our ROI calculator to see how Flex Fees can work for your center or book a Flex Fees configuration session to talk with Daxko’s team.