Nope, that is how they make their money.

If you select "Friends and Family" you will pay the fee
Imaginary numbers but if you were to donate $100. You would pay $103 and the recipient would get $100.
If you select anything else the recipient will pay the fee
Imaginary numbers but if you were to donate $100. You would pay $100 and the recipient would get $97.

You shouldn't have to pay a transaction fee for sending money to a friend/family. I think the problem is that a couple of our moderators (Kevin and Alex) are in the UK, and you will have to pay (or they pay) an International transaction fee for them if you're in the US. I know... it sucks. But if you're in the US and the recipient is in the US and you pick friends/family, there's no fee. I do it all the time.