According to the 2020 Global Trends in Giving Report, 44% of donors prefer to give online with a debit or credit card. With donations growing in abundance –and an increase in competition between nonprofits for those donations–appealing to donors’ preferred methods is essential to meeting fundraising goals.
Online payment processing services make accepting donations online easy and secure. Still, upgrading your nonprofit’s technology to keep up with giving preferences can seem like a daunting task. This post will help you make sense of technology services for nonprofits by comparing Stripe vs PayPal for nonprofits, as well as Venmo and Square.
Whether looking for the right payment system or free database software for nonprofits, Computers in Ministry (CIM) is here to help you get your focus back on your mission.
Stripe is an online payment system with domestic and international capabilities. It is also compatible with digital wallets like Apple Pay and Google Pay. While Stripe does not offer a free service for nonprofits, organizations with 501(c)(3) status that will be processing at least 80% of their donations through Stripe are eligible for a fee discount.
Here is a breakdown of Stripe’s fees for qualifying and non-qualifying nonprofits when processing domestic donations:
When deciding if you should implement Stripe for nonprofits, consider its additional features. Stripe accepts major card brands, including American Express, China Union Pay, Discover, Japan Credit Bureau, Mastercard, and Visa. Stripe is also certified as a PCI Service Provider Level 1, the most stringent security certification available in the online payments industry.
PayPal is likely the most recognizable online payment service provider. With over 300 million users, it’s easy to see why. Similar to Stripe, PayPal is not free for nonprofits, but it offers discounted transaction rates for organizations with 501(c)(3) charity status.
The PayPal nonprofit fees for domestic donations are as follows:
With security features like PayPal Purchase Protection, users are confident when making online transactions because they can receive refunds if they are affected by fraudulent activity. PayPal also accepts many major cards including Visa, Mastercard, American Express, Discover, and Japan Credit Bureau.
Venmo has over 83 million users and offers one of the easiest interfaces to make payments and share money with friends and family. Unfortunately, it does not currently have a program for donation campaigns or nonprofits. This means that in order to get the app’s full security benefits, your nonprofit would pay the same fees as a business.
The good news is that those fees (3%) only apply to payments made with a credit card. With no setup or monthly fees, Venmo can be an extremely cost-effective way for your nonprofit to receive donations from donors that pay with their debit card or Venmo balance.
Square offers both software and hardware solutions for nonprofits to accept donations. With Square Online, you can process donations directly through your website. With a Square device, you can offer convenience to those donating in person at your site or an event. A Square device is a portable card reader, allowing you to overcome one of the most common excuses for declining to donate: “I don’t have any cash on me.” Instead, all a donor has to do is swipe their card.
Like Venmo, Square doesn’t offer any discounted rates for nonprofits. Their standard fee per transaction is 2.6% + $0.10, and they accept all major credit cards.
There are many good options when it comes to payment processing systems or other technology for your nonprofit. What is right for you depends on your goals, the digital literacy of your staff, and the technology you already have in place. Although adopting new technology can seem overwhelming, even a single change can greatly benefit your nonprofit.
At Computers in Ministry, we demystify information technology. Our mission is to help you make the most of the opportunities that technology presents to your nonprofit. With our integrated approach, we partner with your team for identifying goals, determining which technology can help you achieve them, developing a roadmap for implementation, and training your employees and volunteers to be self-sufficient.
Contact us to learn more about how information technology can expand your organization’s reach.