PayPal is a popular choice for many nonprofits to accept donations, but it may not always be the best fit for every organization. As your nonprofit grows and your fundraising needs evolve, exploring PayPal alternatives to accept payments can open up new opportunities.
In this article, we introduce several PayPal alternatives for nonprofits. These alternatives offer features to help you streamline your fundraising efforts, improve donor engagement, and maximize your impact.
Why PayPal Alternatives Support the Way You Accept Payments
While PayPal is a well-known online payment platform, it has several drawbacks regarding nonprofit fundraising. Nonprofits mainly want to maximize their fundraising efforts and ensure each penny goes straight to the cause. However, NPOs may want to check out PayPal alternatives when the payment processor comes with extra charges.
For instance, PayPal nonprofit donation fees are 2.2% + $0.30 per transaction. It charges a higher standard processing fee (2.9% + $0.30 per transaction) for other profit organizations.
Here’s what it means for your nonprofit: when a donor gives $100 through PayPal, you would receive $97.50 after deducting the 2.2% fee ($2.20) and the fixed $0.30 transaction fee.
For every $100 donation, your organization loses $2.50 to PayPal's fees. Over time, these fees can add up and significantly impact a nonprofit's fundraising efforts, diverting valuable resources away from its mission. Nonprofits should consider using a completely free donation platform to maximize the impact of every contribution they receive.
Disadvantages nonprofits may face with PayPal
- Customer support is automated and not tailored to the specific needs of nonprofit organizations.
- Tax receipts are not automatically generated, requiring additional clerical work and manual effort from the nonprofit staff.
- Donor management features are limited, with access to only basic transaction history and no advanced tools for donor engagement.
- Customization options for donation forms are minimal, restricting the ability to showcase brand assets and set custom donation amounts.
- Fundraising features are basic, allowing only simple online donations without support for ticket sales, raffles, or peer-to-peer fundraising campaigns.
Best PayPal Alternatives for Nonprofits
- Zeffy: Best and Only 100% Free Donation Processing Platform
- Square: All-in-One Contactless Payment Solution
- Stripe: Best Payment Processing Tool with Advanced Fraud Management
- Google Pay: Best for Simple and Smooth Donation Process
- Venmo: Best for Social Sharing
- Apple Pay: Best for Apple Device Donors for Quick and Secure Payments
- Cash App: Best for Quick Transactions and Peer to Peer Payments
Top Online Payment Systems for Nonprofit Donations
Cheaper Alternatives to PayPal for the Best Payment Processor Experience
1. Zeffy: Best and Only 100% Free Donation Processing Platform
- G2 Rating: 4.9
- Capterra Ratings: 4.8
Zeffy is a free, user-friendly, intuitive platform that nonprofits can use to process online donations effortlessly.
Unlike other platforms that charge payment processing fees, which can be challenging for organizations trying to maximize the impact of donations, Zeffy operates on a completely free model. It provides a secure method to collect donations without incurring any transaction costs.
Prominent features of Zeffy
- From credit cards, checks, Apple Pay, and Google Pay – Zeffy accepts all payment types.
- Zeffy's tap-to-pay solution allows you to receive payments in person (no terminal or POS needed).
- Versatile fundraising platform offering event ticketing, raffles, online stores, and membership management
- Nonprofits can create customizable donation forms by adding a logo, colors, and a custom banner.
- Create your peer-to-peer fundraising campaigns.
- Donor management tools to track and cultivate donor relationships.
Pricing
100% free, with no hidden fees for the transaction or platform.
Customer Review
“EVERYTHING is fantastic from the immediate setup time to the ease of use to their phenomenal customer service…the “savings” are way more than just not losing money to credit card companies. It saves TIME and is so elegant and easy to use.” — Nicolas D.
2. Square: Best for Recording Donor Information
- G2 Rating: 4.7
- Capterra Ratings: 4.6
Square, founded by Jack Dorsey, one of the X (formerly Twitter) co-founders, is a financial services platform that caters to small businesses, including nonprofits. While Square is a popular payment processing solution for nonprofit organizations, having collected over 10 million donations, it's important to note that Square offers no discounts specifically for nonprofits. The platform accepts various payment methods, including cash, checks, ACH bank transfers, credit cards, debit cards, and swipe or chip cards.
Pricing
- The physical transaction processing fee is 2.6% plus $0.10.
- In-app online transactions have a fee of 3.5% plus $0.15.
- Donation transactions have a processing rate of 2.9% plus $0.30.
Customer Review
“My org loves using Square Payments because as a nonprofit organization, we make a lot of our funding through fundraising events. Having a mobile option to accept payments on the spot is absolutely massive for us to get the funding for our scholarship program and beyond.” — Sarah B.
3. Stripe: Best Payment Processing Tool with Fraud Protection
- G2 Rating: 4.2
- Capterra Ratings: 4.6
Stripe is a user-friendly online payment processing platform that offers credit cards, debit cards, and ACH processing. It provides real-time reporting and meaningful insights into the results of your fundraising efforts. NPOs can track donor and transaction data to prevent scams. It offers an option to separate low-risk and high-risk transactions to detect fraud.
Pricing
Registered nonprofits processing at least 80% of donation payments on Stripe get reduced pricing of 2.2% + $0.30 per transaction as opposed to 2.9% + 30¢ per transaction for businesses.
Customer Review
“We like the service and the ease of using Stripe. It's simple for us to create an invoice and email it to our customers. We have liked the option of when we receive a payment deposited into our account right away. Their customer service has always been helpful and answered our questions.” — Jeffrey.
Zeffy uses Stripe to process nonprofit donations securely while covering all transaction fees for your organization.
4. Google Pay: Ideal for Simple Donation Process
- G2 Rating: 4.6
- Capterra Ratings: 4.6
Google Pay is a well-known payment gateway for any merchant account. It allows easy money transfer and payments for small businesses and nonprofit organizations. NPOs can integrate a donate button on their website and create a one-click payment process through Google Pay as a PayPal alternative.
Pricing
Google Pay is a free-to-use alternative to PayPal for nonprofits, If you reside outside the US, your bank or credit card issuer may charge you currency conversion / foreign currency transaction fees and taxes.
Customer Review
“Keeping track of contracts and budgets is difficult for anyone, especially for any nonprofit organization. Google Pay (formerly known as Google Wallet) helps to streamline online payments for your financial operations department. It's easy enough to use the platform that team members can be cross-trained on the system fairly quickly.” — Sara Yaseen
Nonprofits on Zeffy's platform can effortlessly accept donations via Google Pay across all their online donation forms. Zeffy automatically integrates Google Pay, ensuring a seamless giving experience for donors. Zeffy handles all transaction costs, allowing organizations to receive the donated amount without deductions.
5. Venmo: Ideal for Social Sharing
- G2 Rating: 4.5
- Capterra Ratings: 4.7
Another excellent alternative to PayPal is Venmo, which allows nonprofits to send and receive payments.
Venmo, an online money transfer platform, was acquired by PayPal in 2013, enhancing its functionality for nonprofits and donors. It enables nonprofits to create branded profiles showcasing their mission and keywords while allowing donors to easily contribute to organizations aligning with their interests through a single click.
By streamlining the donation process, Venmo provides nonprofits with an effortless and beneficial way to receive support from their community.
Pricing
For every $1 or more donation:
- Venmo charges a standard fee of 1.9% + $0.10 for each donation.
- Tap to Pay feature costs 2.29% + $0.09 for each donation received
- Charges a 1.5% fee for instantly accessing donations
Customer Review
"Venmo allows us to better engage with our members by allowing them to purchase swag, renew their membership, and donate quickly and easily. I have yet to run into a significant issue because the support staff has been wonderful.” — Andrew A.
6. Apple Pay: Best for Apple Device Donors for Quick and Secure Payments
- G2 Rating: 4.7
- Capterra Ratings: 4.8
Apple Pay allows users to make payments securely and conveniently using iOS devices. They can add credit or debit cards to Apple Wallet for contactless donations. Apple Pay is also available on the Apple Watch, and various products are synced through someone's iCloud account.
The donors’ information is linked to their phones or computers, so they do not need to fill in details. The Apple payment gateway will fetch their contact and payment details each time they donate.
Pricing
Apple does not charge monthly or annual fees or commissions on Apple Pay transactions.
7. Cash App: Best for Quick Transactions and Flexible Donation Options
- G2 Rating: 4.3
- Capterra Ratings: 4.3
Cash App is an excellent PayPal alternative that enables supporters to make quick and safe payments. It helps NPOs accept, process, and record donations efficiently and accurately.
Developed in 2013, Cash App is a peer-to-peer platform for collecting donations. It does not charge extra fees for debit cards, bank accounts, or ACH transactions.
Pricing
- 3% per transaction made using credit card payments
- 0.5% -1.75% fee for instant deposits
- Standard deposits are free
- Flat payment processing rates - No hidden fee
Customer Review
“I would like to list more than one debit card and checking account so I don't have to switch back and forth so often, it's very difficult to switch over sometimes especially if I am in a hurry.” — Verified Reviewer
What to Consider When Choosing a PayPal Alternative for Donations?
When selecting a way to choose online payments for your nonprofit, consider your organization's specific needs rather than opting for the cheapest or most feature-rich option. Choose a solution that aligns with your nonprofit's unique requirements. You may have to look for additional features specific to a nonprofit's needs, such as donor management.
A good PayPal alternative should support your nonprofit by offering services without levying a fee, as this allows more of the donated funds to benefit your cause directly. Here are some features to consider that will help you pick the best online payment processing solution:
1. Simple System to Process Donations
Choose a platform with a user-friendly interface that makes it easy for donors to give through online and mobile payments and in person. The process should be straightforward and quick, with minimal steps to complete a contribution.
You can think of creative ways to accept transactions online, such as payment links, QR codes to send money instantly, and a prepaid card often associated with mobile payment processors and apps.
A simple system helps reduce donor drop-offs and increase successful donations. Look for a platform that streamlines the giving process, making it hassle-free for your supporters and ultimately boosting your fundraising efforts.
2. Mobile Responsiveness
Many donors prefer to give on the go using their mobile devices. A mobile-friendly donation page ensures that your supporters can easily contribute, regardless of their device. Opt for payment solutions that offer a seamless mobile giving experience, with a clean layout and easy-to-tap buttons, to maximize donations from mobile users.
3. Free Donations
Zeffy allows your nonprofit to collect free online and in-person donations. Our innovative model maximizes your nonprofit's impact by allowing you to receive 100% of every pledged donation.
4. Donor Management
Streamlined donor management is essential for nonprofits. Choose a payment processing platform with tools to capture donor data, track giving history, and generate reports. This will help you better understand your donors, personalize your outreach, and cultivate strong relationships that lead to long-term support.
5. Branded Experiences
Your donation page should look like an extension of your nonprofit's brand. Pick a platform that lets you customize your pages with your logo, colors, and messaging. This builds trust with donors and creates a smoother giving experience that keeps supporters returning.
6. On-Demand Support
Any hiccups or delays when processing donations can be costly. Choose a payment gateway with a dedicated support team that understands nonprofits' unique needs.
Having access to knowledgeable, responsive support ensures that your donation process runs smoothly and that you can focus on your mission. This is especially important if you plan to accept international payments and rely on currency conversion or processing fees from an outside bank account.
Which PayPal Alternative Should You Use?
PayPal is one of the well-known ways to collect online and mobile payments, but nonprofits have different needs. NPOs require features like peer-to-peer fundraising, donor management, and recurring donations. More importantly, they must ensure all funds raised go entirely towards their cause without transaction fee deductions.
This is where Zeffy comes in as the best alternative for nonprofits. Turning to Zeffy means your cause gets 100% of the donation. Experience fully automated payment processing with Zeffy!
FAQs
