If your nonprofit wants to collect donations online (and we’re sure you do!), you’re going to need an online payment processor.
Nonprofit payment processors are a key piece of setting up your online payment services. This will allow you to deposit any money you’re getting, from donations and dues to online sales and event tickets!
A quick Google search will show you countless options for the best online payment processing for nonprofits — but how do you know which is actually BEST?
We’ll help you make the right pick! Keep reading to get everything from features to look for, answers to FAQs and our top 17 picks for you to choose from!
Nonprofit Payment Processors: A Quick Breakdown
We’ve included a full review of each payment processor later in this post (you can skip to it here!), but here’s a quick table outlining all of the payment processing options we’ve reviewed to get you started!
| Best For | Standout Feature | Fees Starting At | Integrates Directly with WildApricot? | |
| Personify Payments by WildApricot | US Membership-based orgs | Built in-platform – no 3rd party tools needed | 2.9% + $0.30 | Yes |
| Square | Online and in-person payments | Point-of-Sale tools | 2.6–2.9% | No |
| Stripe | Tech-savvy and global orgs | Custom integrations | 2.9% + $0.30 | Yes |
| PayPal | Smaller or newer orgs | Easy set up and trusted brand | 1.99% + $0.49 | Yes |
| iATS Payments | Established nonprofits using CRMs | Exclusively for nonprofits + nonprofit support | 2.8% + $0.30 | No |
| Donorbox | Recurring donations | Donor management | 2.95% – 3.95% | No |
| 8am AffiniPay | Canadian-based Membership organizations | Next-day deposits and recurring billing | 2.9% + $0.30 | Yes |
| CharityEngine | Mid-to-large orgs with custom CRM | All-in-one fundraising platform | 2.5%-3% | No |
| Authorize.Net | Large orgs that need security | High security that can manage high volume | 2.9% | Yes |
| Paypal Enterprise Payments (Formerly Braintree) | Orgs that value customization | International and high volume capabilities | 2.9% + $0.30 | Yes |
| Venmo | Fledgling orgs with young donors | Mobile-giving – easy-to-use with QR codes | 1.9% + $0.10 | No |
| Clover | Payment versatility | Many POS (Point-of-Sales) tools | 2.3% + $0.10 | No |
| Snowball | Mobile-focused giving | Text-to-Give capabilities | 2.9% + $0.30 | No |
| Bloomerang Payments | Nonprofits using CRMs | Integration capabilities | 3.2% + $0.30 | No |
| Funraise | Brand-focused organizations | Donors covered processing fees | 2.9% + $0.30 | No |
| GoFundMe Pay (previously Classy) | Large fundraising efforts | Diverse fundraising campaigns | 2.4% + $0.30 | No |
| Givebutter | Free payment processor | Flexible payment options | 2.9% + $0.30 | No |
Now we’re going to get into more about why your nonprofit might need a payment processor, as well as defining some common terms to provide more context… but if you’d just like to skip to more details about each payment processor, click here.
Why do you need to think about payment processing for nonprofit organizations?
So you plan your fundraising campaign, you execute it like a champ, you blast through your goals… and then what?
That’s when your payment processor comes into play! Nonprofit payment processors are a backend tool that moves the money from your donors’ bank accounts straight to yours. This is often called the “merchant account.”
Where you would collect and deposit checks by hand in the old days, payment processors now handle those valuable online donations. Whether donors are using debit card or credit card payments, the money gets right to you!
Using a payment processor as a middleman helps you:
- Deposit online donations
- Collect membership dues
- Sell merch and event tickets
The best nonprofit payment processor makes this process simple and secure. Better yet, it builds trust in your relationships with donors!
How can nonprofits accept online payments?
Nonprofits accept payments through a secure online donation form which is connected to a payment processor.
The two main payment options are:
- Major credit cards: Donors simply type in their card number and the money zips over through a credit card network. This type of payment processing usually costs a fixed rate plus a percentage of each transaction.
- ACH (“Automatic Clearing House”): Also known as “direct payments,” ACH processing moves the money directly from a donor’s debit bank account. Think of it as an electronic check! Because it cuts out the credit card verification process, it usually charges you a flat fee.
Be sure to have BOTH options available to your donors. That way, anyone can donate any time!
There are also a couple of less common ways to accept donations online, like:
- Digital wallets (Apple Pay, Google Pay)
- Venmo / PayPal / Cash App / Zelle (with pros/cons)
- Text-to-give & mobile giving
Key nonprofit payment processing terms you should know
- Payment Gateway: Tech that securely captures and transmits payment information from the customer to the payment processor. Think of it as the bridge between your website/POS and payment type.
- Payment Processor: The company handling your transaction and communicating between the customer’s bank and the merchant’s bank. Think of it as your payment liaison.
- Merchant Account: A special type of bank account for businesses to accept debit and credit card payments. This is where the funds are temporarily held before being transmitted to the business’s main bank account. When your payment says “pending” in your personal account, the funds are in the merchant account.
- Aggregator (third-party processor): A payment provider that allows organizations to accept payments without setting up a merchant account. Common examples are Stripe, PayPal, and Square.
- ACH: An electronic bank-to-bank payment system used for transfers like direct deposits, bill payments, and e-checks. The bonus is lower fees, but you’ll typically deal with longer processing times.
- PCI Compliance: Payment Card Industry Data Security Standard (PCI DSS), these are a set of security requirements that protect cardholder data and reduce fraud.
- Tokenization / Encryption: Another security factor for payments. Tokenization replaces card information with a random “token” that can be stored and used for future transactions. Encryption does a similar thing: during payment transmission, the payment data is converted into an unreadable code.
- Chargeback: When a customer disputes a transaction with their bank, the funds are returned to the customer while the payment is investigated.
- Recurring Billing: An automated payment setup where a customer is charged on a regular schedule for memberships, subscriptions, or installment plans.
What’s the difference between an online donation tool and a payment processor?
An online payment processor moves donations from donors’ bank accounts into yours, it’s simply a payment processing service. Online donation tools have a wider variety of uses and supports multiple aspects of collecting donations, such as:
- Gathering donor information (name, email, address, etc.)
- Contacting donors
- Running reports
Many of these tools already work with payment processors, so be sure you’re happy with the option they’re giving you before you sign up.
What features should my online payment processor have?
The best payment processor for your nonprofit should:
Be Highly Secure
Having a secure payment processor is something your donors will value. Setting high security standards for your online payment processor will build donor trust with your organization.
If you’re collecting donations via credit card or ACH, you’re being trusted with peoples’ hard-earned money and personal information. The last thing you want to do is have that trust broken by a security breach!
The best payment processor for nonprofit security should:
- Be PCI compliant. This is the baseline for safety when it comes to data security. PCI compliance comes in at four levels depending on how many yearly payments you process. Make sure your processor supports the compliance level you need!
- Have fraud protection features. Fraudulent payments are a real issue when it comes to online transactions! Research your payment processor to see how extensive the fraud protection features are. For example, a payment gateway checks that donations aren’t coming from robots, and BIN (Bank Identification Checking) makes sure the donor bank accounts are legitimate.
- Come with encryption. You know how spy movies will scramble and unscramble secret codes? That’s exactly what encryption does! Keep your donors’ data safe so only people with the online key can read it.
Curious about WildApricot’s online payment processing tools? Check out our help article: Online payments
Safety is truly the number one concern of donors! While a funky donate page might turn off some of your donors, risky security features will stop ALL donations in their tracks.
Be Transparent About Fees and Total Cost
Payment processors can include hidden costs beyond the expected payment. These extra fees can vary depending on the form of payment, such as card type (Visa versus Amex), payment method (ACH), currency and more. When choosing a payment processor, be sure to look at:
- Transaction fees: These will be charged every time a payment is processed and cover bank and card network costs. These are unavoiable if you’re accepting credit cards. Typically formatted as a percentage of the transaction (2.9%) plus a flat per-transaction fee ($.30)
- Monthly fees: This monthly charge is fixed and will be charged to your business regardless of how many transactions are processed.
- Platform fees: This fee can be confused with transaction fees, but platform fees cover the cost of the processor software. Depending on the software you choose, sometimes donors can cover this fee, allowing your organization to keep the majority of donations.
- Chargeback fees: An additional fee you incur if someone files a dispute with their bank on a payment you process. Typically, this is $15-$25 per incident and too many chargebacks on your business can result in higher processing rates.
- International/currency conversion fees: If you accept payments from international individuals, you may be charged cross-border fees (.5%-1.5%) or a currency conversion fee (1%-3%).
- Other hidden costs, like support charges: These could be additional fees or charges that can drastically change your total cost of payment processing. Be on the lookout for fees related to account setup, customer support, hardware, and refunds.
For example, a $100 payment made to your organization could look like this:
- Credit card transaction and processing fee (2.9% + $.30) and platform fee: (+1%)
- ($100 x 3.9%) + $.30 = $4.20 total fees
- Your organization receives $95.80
Knowing all the potential fees associated with payment processing software will help you find technology that fits your organization’s budget. Make sure to ask about all these hidden costs and read the fine print before committing to software.
Integrate with Your Site
A good payment processor should always integrate smoothly with your nonprofit donation website. Once it’s time for your donors to pay, the processor should fit with your branding—think matching colors and fonts!
If the payment processor seems out of place, donors might worry that they’ve been redirected to somewhere risky. As we mentioned, people are rightfully afraid of security breaches. If your payment processing is integrated with your site, donors will feel safer completing their transaction.
Pay Out Donations Quickly
When individuals donate to your organization, they want to know their contributions are making an impact as soon as possible, and you want to use these funds for your projects immediately. This means you’ll want your payment processor to have a quick payout speed.
Payout speed matters because many nonprofits rely on donations to cover immediate operational costs or emergency initiatives. Slow payout speed can delay your events and campaigns, negatively affect budget management, and delay cash flow for projects and reimbursements.
Most payment processors take a few days for funds to hit your account. A standard payout timeline is 1-2 business days, but some processors use a 3-5 business day timeline. Be aware of holidays and weekends, as they will delay your payout. Keep in mind that the first time you make a transaction with your payment processor, there may be extra delays in payouts. This is usually due to extra account verification or activation.
Some payment processors offer instant payout options. This enables you to receive your payments within minutes, rather than days. Often, this comes with an additional fee (around 1% of the transaction amount). This can be helpful in time-sensitive situations such as urgent event expenses, emergency fundraising initiatives, and short-term cash flow needs. Be sure to inquire whether instant payout is an option when evaluating payment processors.
Integrate with Your Fundraising Tools
Donations don’t just go through your donation page! If you’re fundraising, chances are you’re using multiple fundraising tools to communicate with donors and market your campaign.
Make sure your nonprofit payment processing works for things like:
- Text-to-donate software
- Crowdfunding platforms
- Ticketing software for events
- Mobile payments through
- Mobile devices
- Mobile App
Every avenue you use should be covered by your payment processor. This will make it easy to calculate your online donations in one place.
Integrate with Your Donor CRM
Your nonprofit’s CRM (Customer Relationship Management) software is what helps you foster donor stewardship. Fundraising doesn’t end when you’ve hit your goals for a single campaign—the next step is growing and nurturing donor relationships.
The ideal payment processor will help you gather donor information that can be entered into your CRM system. Even a simple name and an email address gives you a way to communicate moving forward.
This allows you to:
- Send donor-specific newsletters
- Share when you’ve reached milestones and goals for fundraising
- Send thank you messages to donors
- Reach out to lapsed donors and rebuild the relationship
When donors feel connected to your organization, they’re more likely to keep giving. Better yet, they’re more likely to set up recurring donations, or even volunteer!
User-friendly UX
From finding the donate page to inputting credit card information, every step of the giving process should be smooth and easy. If donating becomes frustrating, people are far less likely to follow through.
UX, or “user experience,” is exactly what it sounds like! If the experience of giving is seamless, your donors will focus on how good it felt to give rather than how tedious it was to donate.
Reporting
You shouldn’t have to hunt down the details of how much money you’ve raised. Payment processing for nonprofits should come with regular, easy-to-read reports that you can download with the click of a button.
We talk a lot about how giving should be easy for donors—but receiving should also be easy for you!
Scheduled or Recurring Payments
Recurring donations are essential to turning donations into a steadier stream of revenue. Your payment processor should be able to process recurring, pre-scheduled donations without any work on your part.
If people change their donations from one-time to monthly (woohoo!) then your processor should also be able to manage that change without a hitch!
Types of Payment Accepted
In a perfect world, your organization would be able to accept any type of payment your donors have. Whether your donors prefer a debit card transaction, credit card transaction or ACH transaction.
When considering your payment processing platform, choose the one that allows you to collect donations from as many places as possible. You don’t want to miss out on donations on a technicality.
Keep in mind there are a lot of different banks and credit card options out there – being able to be flexible on card type or bank will make the donation process easier for donors.
Customer Support
Look, technology is complicated. Sometimes things break, and sometimes supporters just aren’t super familiar with the internet.
Make sure your payment processor has real live people available in case of emergency. Whether it’s a phone number or a live chat box, your donors should be able to access support when they need it. An FAQ is great, but it doesn’t always cut it.
Good customer service from your payment processor is what will keep frustrated emails out of your inbox!
Donation Receipts
Many people collect their donation receipts for tax reasons—especially if those donations are on the larger side. A huge part of payment processing for nonprofits is making sure the essentials go out without extra work on your part.
Check that your processor sends out those receipts right away so you don’t have to worry about it. This is an easy way to cross off a key step of donor management.
WildApricot is a donor management software which has exactly this feature built into its payment processing! Simple, secure and with seamless integration, we’ve got you covered from the first click through the final report. Plus, our membership management software will take care of your donors after the transaction is made.
Sign up for your 60-day free trial to see for yourself!
How to Choose the Best Payment Processor for Your Nonprofit
Nonprofit payment processing isn’t one size fits all. Different nonprofit types and sizes will all have different requirements. When exploring options, ask yourself these questions:
- What donation volume does our organization expect?
- Do we need strong CRM integrations?
- Do we frequently run events?
- Is in-person fundraising a large part of our strategy?
- Are recurring gifts a major priority?
- Do we need international support?
- Are we prioritizing a processor with the lowest fees or the most features?
- Do we have tech resources for setup?
Here are some examples of different organizations and the must-have features they look for in a payment processor:
- Small Volunteer-Run Nonprofit
- Has: Small staff and limited budget
- Features to look for: Easy setup with low cost
- Mid-Size Membership-Based Nonprofit
- Has: Membership dues and pre-existing tech
- Features to look for: CRM integration with recurring billing
- Large Multi-Program Org
- Has: Large amount of transactions of different types (donations, dues, tickets, etc.)
- Features to look for: Security with custom integrations
- Campus Group or Youth Org
- Has: Young, tech-savvy members
- Features to look for: Mobile giving (Venmo etc.)
- Has: Young, tech-savvy members
- International NGO
- Has: Members from all over the globe with various payment methods
- Features to look for: Multi-currency and global payout options
The Three Main Credit Card Processing Options for Nonprofits
Most of the time, your organization will accept credit card payments, so it’s important to be aware of the options available for accepting them. The three main options for accepting credit card payments for nonprofits are through a third-party payment processor, a merchant account, or software that also processes payments. I’ve outlined what you can expect from each of them below.
1. Third Party Payment Processor
- Typical Fees: 2.9% + $0.30 per transaction. Usually no other fees.
- Customers may recognize the name if you use a widely accepted payment processor (we’ll share our recommendations later in this article), but there are fewer opportunities to brand it with your identity.
If your nonprofit is expecting a low volume of monthly transactions (less than a hundred), you might want to choose a third-party payment processor.
Set up is relatively quick, but transaction fees are higher since you’re paying a third party to process transactions via their own merchant account.
Keep in mind that third-party payment processors will limit your ability to accept credit card payments in person. You’ll need some sort of hardware, like a card reader or POS, for these transactions.
2. Merchant Account
- Typical Fees: 2.15% + $0.25 per transaction. Set up/monthly fees vary.
- Merchant accounts enable you to accept offline payments and donations via a hand-held credit card reader.
For organizations with a very high volume of in person monthly transactions (hundreds or more), it might be easier to choose a merchant account. While transaction fees for a Merchant Account are typically lower than a Third Party Payment Processor, it takes a little more time to set up your account.
With a merchant account, you’ll need a credit card processor to accept offline payments. Your options will be a credit card terminal, a credit card swiper or manually enter payments via a virtual terminal.
Credit Card Terminals vs. Credit Card Swipers vs. Virtual Terminals
After setting up your merchant account, the payment processing solution you choose can help you get the appropriate hardware. But of the 3 types of credit card processors, which is right for your nonprofit?
Credit Card Terminals
A credit card terminal is the same tech you’re used to using at most retail stores. It’s a simple card reader that customers can insert, swipe or tap their card against to pay.
Models can be wired or wireless – both have their pros and cons. Wired terminals are much more likely to remain connected even in the case of an internet outage, whereas wireless terminals are much lighter and more portable. Unfortunately, both can be more difficult to connect to other software providers, like fundraising software, and are more expensive than a card swiper.
Credit Card Swiper
With that in mind, you may want to consider using a credit card swiper. These lightweight devices can easily be attached to a phone or tablet. Simply download the app associated with your payment processor, purchase a card swiper from them and you’re good to go!
Virtual Terminal
Finally, if you don’t mind entering credit card numbers manually, you can also simply use a virtual terminal. This is basically the same as the donation page on your website — it allows you to enter the card details into a form and then charge them online.
However, if you need to process a lot of transactions, it can be incredibly time-consuming. Further, individuals may not feel comfortable letting someone else type in their CVV and credit card number.
3. Credit Card Processing Through Software
- Typical Fees: Vary based on the software you select. Payment processing fees will be comparable to those for a merchant account.
- A more robust solution, credit card processing through software is when your technology includes payment processing along with their other features.
Some of the most popular among nonprofits are fundraising software, which include functionality like donor management and peer-to-peer fundraising. All-in-one solutions go beyond just fundraising, providing other tools such as a website builder, online store and event registration.
One example of all-in-one software is our tech – WildApricot. If you’re looking for an option that includes a website builder, online store, event registration and more, you can check out our free trial to see if it’s right for your organization. We’ll go over our features and other great providers in the next section – highlighting fees, their key strengths and potential disadvantages.
Best Online Nonprofit Payment Processors
Now that you know the must-haves of online payment processing for nonprofits, here are the BEST options we’ve found:
| Best For | Standout Feature | Fees Starting At | Integrates Directly with WildApricot? | |
| Personify Payments by WildApricot | US Membership-based orgs | Built in-platform – no 3rd party tools needed | 2.9% + $0.30 | Yes |
| Square | Online and in-person payments | Point-of-Sale tools | 2.6–2.9% | No |
| Stripe | Tech-savvy and global orgs | Custom integrations | 2.9% + $0.30 | Yes |
| PayPal | Smaller or newer orgs | Easy set up and trusted brand | 1.99% + $0.49 | Yes |
| iATS Payments | Established nonprofits using CRMs | Exclusively for nonprofits + nonprofit support | 2.8% + $0.30 | No |
| Donorbox | Recurring donations | Donor management | 2.95% – 3.95% | No |
| 8am AffiniPay | Canadian-based Membership organizations | Next-day deposits and recurring billing | 2.9% + $0.30 | Yes |
| CharityEngine | Mid-to-large orgs with custom CRM | All-in-one fundraising platform | 2.5%-3% | No |
| Authorize.Net | Large orgs that need security | High security that can manage high volume | 2.9% | Yes |
| Paypal Enterprise Payments (Formerly Braintree) | Orgs that value customization | International and high volume capabilities | 2.9% + $0.30 | Yes |
| Venmo | Fledgling orgs with young donors | Mobile-giving – easy-to-use with QR codes | 1.9% + $0.10 | No |
| Clover | Payment versatility | Many POS (Point-of-Sales) tools | 2.3% + $0.10 | No |
| Snowball | Mobile-focused giving | Text-to-Give capabilities | 2.9% + $0.30 | No |
| Bloomerang Payments | Nonprofits using CRMs | Integration capabilities | 3.2% + $0.30 | No |
| Funraise | Brand-focused organizations | Donors covered processing fees | 2.9% + $0.30 | No |
| GoFundMe Pay (previously Classy) | Large fundraising efforts | Diverse fundraising campaigns | 2.4% + $0.30 | No |
| Givebutter | Free payment processor | Flexible payment options | 2.9% + $0.30 | No |
WildApricot — Best for All-in-One Donations, Events + Memberships
Hey there, it’s us! Personify Payments and 8am AffiniPay are WildApricot’s integrated payment processing systems and are considered some of the best alternatives to Paypal out there.
- PCI-Compliant Payment Processor
- Avoid the Payment System Servicing Fee (PSSF)
- Seamless checkout integration with your website, including one-click checkout
- Automatic membership renewal and recurring donation payments are supported
- One-stop support through our WildApricot Support Team
- Process payments from over 95% of countries around the globe
- No long-term contracts
Pricing: 2.9% + $0.30 per transaction (3.5% + $.30 per transaction when using American Express), with zero set up or monthly fees.
Payout Time: Processed each business day
Personify Payments was built SPECIFICALLY for nonprofit donations and is available for US clients. For Canadian nonprofits, we recommend 8am AffiniPay. Not part of North America? No worries! WildApricot is integrated with multiple of the third-party payment processors we list below.
If you like how we manage payments, just wait until you see what we can do for membership management. WildApricot can help you set up your website, build your donor database, communicate with donors and more!
Sign up for a free 60-day trial to test it out for yourself.
Square — Best for On-Site Payments
Square is an easy to set up processor that allows you to accept donations online, in-person, through a payment link or with social media buttons.
Pros: Free POS tools and simple setup
Cons: Limited donor management or CRM features
Pricing: These are the processing fees with their free plan, the fees will vary based on your plan!
In-person: 2.6% + $0.15
Online: 3.3% + $0.30
Payout Time: 1-2 business days, instant payouts available in paid plans
Stripe — Best for Adding to Your Website
Stripe payment processing for nonprofits supports credit card and ACH payments in over 135+ different currencies across 195 countries.
Pros: Highly flexible and integrates with most systems
Cons: Requires technical setup; no donor CRM
Pricing: The fee rates vary if manually entered, the payment method is international and if currency conversion is required. If you’re a registered nonprofit, and 80% of your transactions are tax deductible donations.
Standard Rates: 2.9% + $0.30 per transaction
Registered Nonprofit Rates: 2.2% + $0.30 per transaction in the U.S.
ACH Direct Debit payments: 0.80% and up to $5 per transaction.
Payout Time: Varies, usually 2 business days
Paypal — Best for Getting Started Quick
Paypal is one of the most well-known payment processors out there—though it does require donors to set up a Paypal account to donate.
Pros: Easy to set up and trusted globally
Cons: Limited customization and slower transfers
Pricing: Some 501(c)3 organizations can qualify for reduced rates, be sure to check if your nonprofit is qualified when using this platfor
Standard Rates: 2.9% + $0.49 per transaction
Confirmed charity rates: 1.99% + $0.49
Payout Time: 1-3 business days, instant payout available
iATS Payments — Best for Integrating into Your CRM
iATS Payments is an online payment processor that can be integrated with tons of nonprofit software companies.
Pros: Built specifically for nonprofits; strong CRM integrations
Cons: Not plug-and-play; setup required via partner platforms
Pricing:
Credit Card Rates: between 2.49% and 3.2%, depending on the card type.
ACH Rates: Flat fee of $0.26 per transaction
Payout Time: 1-2 business days
Donorbox — Best for Recurring Payments
Donorbox is great for organizations who need a detailed look at their donors. Their donor data management is built into the platform, enabling you to make stronger relationships with donors and supporters.
Pros: Custom donation forms and donor data tools
Cons: Adds a 1.5% platform fee on top of processor fees
Pricing: 1.5% platform fee + Stripe/PayPal fees
Standard Rates: 2.95% to 3.95% per transaction
Payout Time: 2 business days
CharityEngine — Best for Custom Donor CRM Plan
CharityEngine is designed to take care of payment processing for nonprofits specifically, and comes with many online donation tools.
Pros: Combines CRM, fundraising, and payment processing in one
Cons: Expensive and has a steep learning curve
They have a variety of packages based on your projected contact and email volume starting at $450-700/month. To get a quote, you can contact CharityEngine here.
Payout Time: Varies by plan
Authorize.net — Best for Hyped Up Security
Authorize.Net is a well-established payment processor owned by Visa. Its advanced fraud protection features are a must-have if security is your top priority!
Pros: Excellent fraud protection and reliability
Cons: $25/month gateway fee and technical setup required
Standard Rates: 2.9% + $0.30 per transaction along with a monthly fee of $25.
Payout Time: 2-3 business days
PayPal Enterprise Payments (Formerly Braintree) — Best for Teams with Development Capabilities
PayPal Enterprise Payments, formerly known as Braintree, is a processor from Paypal that offers more advanced functionality and flexibility than their classic payment processor.
Pros: Accepts PayPal, Venmo, cards, ACH and wallets in one gateway
Cons: Requires developer setup and separate CRM
Pricing: Standard card and charity pricing is below, extra fees may be added for international cards, non-USD currency, American Express and more.
Standard Rates: 2.89% + $0.29 per transaction
Charity Transaction Rates: 2.19% + $0.29
Payout Time: 1-3 business days, instant payout available
Venmo — Best for Fledgling Organizations
Venmo is the #1 most affordable option for payment processing for nonprofits. If you’re looking to get attention from a younger group of donors, you can set up a Charity Profile to use Venmo for nonprofits!
Pros: Easy, familiar and fast mobile giving
Cons: Minimal donor data; must connect through PayPal
Pricing: For every donation of $1.00 of more, Venmo charges the below rate to the charity
Standard Rates: 1.9% + $0.10 transaction fee per donation received
Payout Time: 2-3 business days, instant payout available
Clover – Best for Payment Versatility
Clover offers payment processing for tap, dip, swipe, cash and checks, making it a versatile processor for many organizations. They offer a multitude of POS systems from handheld devices to countertop terminals.
Pros: Excellent in-person tools for fundraising events – terminals, handheld readers and registers
Cons: Hardware-dependent – to get the most value, you need Clover’s POS devices, which can be costly
Pricing: Full pricing can be given when having a conversation with sales, but their standard rates start as low as
Standard Rates: 2.3% + $0.10 per transaction
Payout Time: 1-3 business days
Snowball — Best for Mobile-Friendly Giving
Snowball Fundraising is a donation software with advanced productivity tools, and specializes in features like text-to-give and auction management.
Pros: All-in-one donation, event, and text-to-give system
Cons: Limited donor management and customization
Pricing: Varies based on the plan you choose.
Standard Rates: Start at 2.9% + $0.30 per transaction
Payout Time: 2-3 business days
Bloomerang Payments — Best for Nonprofits Using CRMs
Bloomerang payments accepts payment from all sorts of sources, and has a built-in tool to ask donors to cover transaction fees. They specialize in their integration with Bloomerang CRM and other fundraising tools.
Pros: Seamless integration with donor tracking and reports
Cons: Only available to Bloomerang users
Pricing: Varies based on whether you’re using their CRM or just Fundraising Tools
Credit and Debit Rates: Starts at 3.2% + $0.30 per transaction
ACH Rates: 1.8% + $0.30 per transaction
Payout Time: 2-4 business days
Funraise — Best Brand-focused organizations
Funraise offers a multitude of customizable donation forms, allowing for a better donor experience and brand-identity. Bonus, about 90% of donors will cover transaction fees, making it a great choice for budget-conscious nonprofits.
Pros: Beautiful, modern donation pages and great integrations
Cons: Higher platform fees for advanced features
Credit and Debit Rates: 2.9% + $0.30 per transaction
ACH Rates: 1.0% + $0.30 per transaction
Payout Time: ~2 business days, instant payout available
GoFundMe Pay (previously Classy) — Best for Nonprofits Using CRMs
GoFundMe Pay, previously Classy, is great for nonprofit organizations with large goals and multiple fundraising campaigns. Their tech makes it easy to implement recurring giving, peer-to-peer fundraising and event fundraisers.
Pros: Enterprise-level campaigns and peer-to-peer fundraising
Cons: Expensive and best suited for larger budgets
Credit and Debit Rates: 2.4% + $0.30 per transaction
PayPal and Venmo Rates: 2.5% + $0.30 per transaction
Donations made directly on GoFundMe: 2.2% + $0.30 per transaction
Payout Time: 2-5 business days
GiveButter — Best Free Payment Processor
GiveButter makes it their mission to make fundraising available for nonprofits at a low cost. They have a free version of their tech with a multitude of accepted payment types. Once tips are enabled, most donors choose to cover transaction costs. If disabled, the fee is deducted from the donation, making it a cost-effective processor.
Pros: 0% platform fees (donor tipping model)
Cons: Limited customization without paid upgrades
Standard Rates: 2.9% + $0.30 per transaction
ACH Rates: 1.9% +$0.30 per transaction
Payout Time: 1-3 business days, instant payout available
FAQ
What’s the Average Donation Processing Fee?
Depending on the payment processor and the credit card, these fees are usually between 2-3% plus $0.30-$0.50 per transaction.
Do Nonprofits Pay Credit Card Processing Fees?
Yes, nonprofits pay credit card processing fees.
Many nonprofits actually ask donors if they’d be willing to cover those fees! Include a note on your donation page about why these fees are there, and make the ask. GoFundMePro actually found that donors are opt to cover fees 33% more often when asked!
What Type of Payment Processor Security Should I Look for?
The #1 thing is to make sure that your payment processing option is PCI compliant. As we mentioned above, looking for things like encryption and fraud protections is also essential.
Some fraud protections include:
- VPNs (virtual private networks)
- Payment gateways
- IP Blocking
Again, a bunch of these are detailed in PCI compliance requirements—if your processor says it’s PCI-compliant at the level you need, you’re good to go. Remember, donors want to know that you have a secure payment processing system!
What is Payment Fraud?
Payment fraud is when someone steals a person’s private information (such as their credit card number) and uses it for false or illegal transactions. This can be done through hacking, or simply by tricking somebody.
You know those suspicious texts from strangers claiming to be the IRS? That’s an example of a scam where someone’s trying to commit payment fraud!
Can CashApp be used for nonprofits?
Yes, nonprofits can use CashApp. However, there’s not a huge benefit beyond how quick it is to accept transactions through your business account.
Since CashApp is used for quick transactions between peers, it won’t help with things like collecting donor information or sending out receipts. Plus, donations aren’t tax deductible.
Can Nonprofits Take Venmo?
Yes, nonprofits can take Venmo! Scroll up for some more details on what that looks like.
Is Venmo Free for Nonprofits?
Venmo is not free for nonprofits, but it’s very affordable. There are no processing fees for receiving donations for the first 30 days. After that, Venmo charges a 1.9% + $0.10 fee to receive funds.
If you’re just starting up and looking to save costs, Venmo could be the way to go!
Is CashApp or Venmo Better for Nonprofits?
If you’re trying to decide between CashApp and Venmo for nonprofits, Venmo is probably the way to go. It’s familiar to lots of people, is backed by Paypal and now has a Charity Profile option to offer additional support.
Is Paypal or Venmo Better for Nonprofits?
Using Paypal for nonprofits is a trusted way to go. It’s well-established and offers detailed reports, but it also asks donors to create a profile before giving. While plenty of people have these accounts, it could be a turn-off for new donors!
Venmo, on the other hand, is great for fast, small transactions. It’s great for reaching younger donors, but is generally used more often for small transactions between peers.
Choose the online payment processor that fits the kind of donations you expect you’ll be receiving!
Can Zelle be used for Nonprofits?
Zelle is used for donations to the American Red Cross, but is currently not recommended for nonprofits. The Wells Fargo website says: “For your protection, Zelle® should only be used for sending money to friends, family, or others you trust.”
Made a donation to the American Red Cross and need a tax receipt? Look here!
Best use a different processor for now!
What are the Pros and Cons of Using Zelle for Donations?
Pros:
- Zero transaction fees
- Donations are instantly transferred
- Familiarity among donors
Cons:
- Donor data limitations – Cannot track donations or automatically give tax receipts
- No integrations with fundraising platforms
- Not all banks allow Zelle for nonprofit use
- Not compliant with nonprofit standards
Using the Best Nonprofit Payment Processor
While setting up nonprofit payment processing is necessary, it doesn’t have to be scary! Working with the right online processor will bring your donation goals to reality. Explore your options, and remember to choose what’s right for YOUR organization.
Remember, the best payment processor for your nonprofit will:
- Be highly secure
- Integrate with your existing tools and website
- Be transparent about fees or hidden costs
- Pay out donations quickly
- Be user-friendly
- Include reporting and analytics
- Allow scheduled or recurring payments
- Accept various payment types
- Allow you to create and send donation receipts
- Great customer support and training
Ultimately, look for features that help you achieve your unique financial goals (e.g., low cost, high transaction volumes, international payments, etc.). Depending on your organization type, some of the best options might be:
- WildApricot: if you’re looking for all-in-one processing for donations, events, and memberships
- Venmo: if you’re a brand-new org with limited transactions
- Authorize.Net: if you have a high volume of transactions and need extra security
- DonorBox: if recurring payments are the focus of your financials
- CharityEngine: if you’re a mid to large-sized nonprofit with custom CRM needs
- GiveButter: if you have a limited budget and need a free payment processor
- Snowball: if you value mobile-giving and need to process payments on the go
- GoFundMe Pay: if you have large fundraising campaigns
