- Verdict: PayPal is a solid starting point, but becomes limiting for nonprofits as fundraising needs grow beyond simple donations.
- What works: Smooth setup, widely trusted by donors, reliable for one-time donations, familiar interface with minimal learning curve.
- What doesn't: Transaction fees quietly reduce donation impact, no built-in tools for events/registrations/fund tracking, limited donor management often requires manual work, and teams often end up juggling multiple tools.
- Best for: New or smaller nonprofits collecting simple, occasional donations with a quick, low-lift way to start accepting gifts.
- Worth considering if: Your fundraising goes beyond simple donations, or the impact of fees and manual work is starting to add up — it may be time to explore PayPal alternatives built to better support how your nonprofit operates.
PayPal is often one of the first payment processing software nonprofits use to start accepting donations. While it's well known, easy to set up, and widely trusted, for small, budget-tight organizations, the fees attached to each transaction can quietly add up and reduce the total impact of every donation.
For example, with PayPal's nonprofit rate (1.99% + $0.49), a $25 donation results in about $1 in fees. Over time, especially with many small donations, that can make a meaningful difference in how much you actually receive.
And yet, many nonprofits continue using PayPal simply because it's simple to start with, even when it's no longer the best fit for how they fundraise.
You shouldn't have to choose between payment processing that works and keeping more of what you raise. This guide explores PayPal alternatives designed to streamline fundraising, reduce fees, and better support the way small nonprofits operate.
Table of contents
7 Best PayPal Alternatives for Nonprofits
- Zeffy: Best Free PayPal Alternative
- Donorbox: Best for Customizable Donation Forms
- Bloomerang: Best for Donor Management
- Stripe: Best for Technical Teams
- Square: Best for In-Person Payments
- Venmo: Best for Social Sharing
- Give Lively: Best for Small Nonprofits
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| Zeffy | $0 platform and processing fees (funded by optional donor tips) • Works with PayPal while eliminating transaction fees • Built-in donation forms, events, peer-to-peer fundraising, and donor management • Automatic tax receipts and donor tracking • Free tap-to-pay app for in-person donations | 100% free, all transaction and processing fees covered • Free POS app for in-person transactions |
| Donorbox | Quick-to-launch donation forms with recurring giving • Embeddable forms for your website • Built-in donor management (basic CRM) • Supports donations, memberships, and events • Works with Stripe or PayPal | 2.95–3.95% per transaction platform fee (Standard Plan) • ~2.2% + $0.30 processing fee • Monthly fees starting at $150/month apply for Pro and Premium plans |
| Bloomerang | Donor database focused on retention and relationship tracking • Engagement tracking and donor insights • Built-in email marketing tools • Reporting dashboards for fundraising performance • Integrates with payment processors | Processing fees apply (~2%+ depending on setup) • Monthly fee between $40 and $125/month |
| Stripe | Direct payment processing with nonprofit discount eligibility • Highly customizable checkout and integrations • Supports recurring and international payments • Fast payouts with detailed reporting • Developer-friendly for custom builds | 2.2% + $0.30 per transaction (nonprofit discount available upon approval) • 2.7% + $0.05 per transaction through Stripe Terminal • In-person card readers begin at $59 |
| Square | Strong in-person and event payment processing • Free POS system for on-site donations • Simple setup and user-friendly dashboard • Supports online and mobile payments • Hardware options for tap, chip, and contactless | 2.9% + $0.30 per online transaction • 2.6% + $0.15 per in-person transaction • In-person hardware starts at $59 • No nonprofit discount available |
| Venmo | Mobile-first donation experience • Payments via username, link, or QR code • Fast transfers for quick access to funds • Social sharing element increases visibility • Integrated within PayPal ecosystem | 1.9% + $0.10 per transaction for eligible nonprofits (availability depends on setup via PayPal Giving Fund or charity profiles) |
| Give Lively | No platform or monthly fees • Donation pages, peer-to-peer, and event tools • Built-in CRM and campaign tracking • Option for donors to cover processing fees • Integrates with Stripe | No platform fee • Transaction fees apply (2.2% + $0.30 per transaction) |
1. Zeffy — Best Free PayPal Alternative
Many nonprofits assume fees are unavoidable or stick with PayPal because it's well-known. But newer platforms are designed specifically for fundraising, helping reduce costs while simplifying how donations, events, and supporters are managed.
Zeffy was built specifically for nonprofits that want to maximize what they raise without adding complexity. Soon, you'll be able to accept donations through PayPal on Zeffy's fundraising platform, for free.
It remains 100% free, covering all transaction and processing fees through optional donor tips.
What Users Like:
- $0 platform and processing fees (nonprofits keep 100% of every donation)
- Built-in donation forms, peer-to-peer fundraising, event ticketing, and donor management
- Supports multiple payment types including cards, Apple Pay, Google Pay, and checks
- Free tap-to-pay app for in-person donations (no POS hardware required)
- Automatic tax receipts and donor tracking without needing integrations
- Simple setup with no contracts, monthly fees, or payout delays
What Users Dislike:
- Less suited for highly custom, developer-built payment flows compared to tools like Stripe
- Not designed for complex enterprise setups or organizations with deeply technical payment infrastructure needs
Ratings:
A closer look at fee comparisons
You don't need to leave PayPal entirely if you make the switch to Zeffy. Soon, you'll be able to accept donations through PayPal on Zeffy's fundraising platform, for free.
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| Fees | $0 fees — we cover 100% • Free Tap to Pay app to accept in-person donations | 1.99% + $0.49 per online transaction (discounted charity rate) • ~2.29% + $0.09 per in-person transaction (via PayPal Zettle or POS tools) • Optional $30/month to accept in-person donations using a virtual terminal or Payments Pro |
| Impact on $10K raised | $0 lost to fees, nonprofits keep the full $10,000 | Nonprofits only keep ~$9,556, after spending a minimum of $444 on processing fees |
Estimates assume $10,000 raised through 500 donations at an average gift of $20.
"The Zeffy interface is easy to use and delivers attractive materials for social media and email. We used it for event registration, peer-to-peer campaigns, and donations. If you're skeptical about their business model, we can tell you there are no catches or loopholes on the financial side — they took zero percent of our fundraising income."
— Michael
2. Donorbox — Best for Customizable Donation Forms
What Users Like:
- Quick-to-launch donation forms with strong recurring giving functionality
- Embeds on existing websites
- Built-in donor management with basic CRM features
- Supports multiple campaign types including donations, memberships, and events
- Works with both Stripe and PayPal for flexible payment processing
What Users Dislike:
- Platform fees (2.95–3.95%) are added on top of Standard plan processing fees
- Monthly fees apply for advanced features, which can add up for smaller teams
- Limited customization compared to more developer-focused tools
Ratings:
"We've seen an increase in recurring donations thanks to the seamless checkout process, and the integrations with our website and communication tools save us valuable time. While there are a few premium features behind a paywall, the value we get overall has far exceeded expectations."
— Sara
3. Bloomerang — Best for Donor Management
What Users Like:
- Engagement tracking tools to help identify and retain supporters
- Built-in email marketing and communication features
- Clear reporting and dashboards for tracking fundraising performance
- Designed to help nonprofits improve donor retention over time
What Users Dislike:
- Monthly subscription fees required, which may not fit smaller nonprofit budgets
- Processing fees still apply
- Can feel more complex to set up compared to simpler donation tools
- Primarily a CRM, so additional tools may be needed for full fundraising functionality
Ratings:
"It is user friendly with an eye-appealing layout. Support has always been helpful when I have needed to reach out."
— Melissa
4. Stripe — Best for Technical Teams
What Users Like:
- Quick payouts for donations
- Ability to receive international payments
- Good support documentation and live chat assistance
- High level of customization
What Users Dislike:
- Nonprofit discounts may be available (~2.2% + $0.30), but approval isn't guaranteed, and rates can still add up depending on donation volume
- Fees apply to every transaction, which can reduce the final amount received by the organization
- Complex setup and usage for new users or those without technical assistance
Ratings:
"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's infrastructure to process donations securely, but covers all transaction fees on behalf of nonprofits. This means organizations can access a similar payment experience to Stripe or PayPal without losing a portion of each donation to processing costs.
5. Square — Best for In-Person Payments
What Users Like:
- Strong for in-person payments and event-based donations
- Secure and user-friendly donation process for supporters
- Real-time reporting with itemized donations for better financial tracking
What Users Dislike:
- Advanced features require a paid subscription
- Overall costs are relatively high
- Some users find that Square does not offer enough functionalities to meet their needs
- No nonprofit discount on processing fees, which can add up for organizations handling many small donations
Ratings:
"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.
6. Venmo — Best for Social Sharing
What Users Like:
- Unique and shareable Venmo QR codes
- Nonprofit and business transaction fees are lower than other alternatives (~1.9% + $0.10 for eligible charity profiles)
- Acts as a social sharing platform, encouraging donors to support a cause
What Users Dislike:
- Various fees can be confusing and add up
- Requires donors to have a Venmo account
- Limited donor data and reporting compared to full fundraising platforms
Ratings:
"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.
7. Give Lively — Best for Small Nonprofits
What Users Like:
- No platform, setup, or monthly fees for nonprofits
- Includes donation pages, peer-to-peer fundraising, and event tools in one place
- Built-in CRM and campaign tools to track donors and engagement
- Option for donors to cover processing fees at checkout
- Integrates with Stripe and other tools
What Users Dislike:
- Payment processing fees still apply to every donation (e.g., ~2.2% + $0.30 for cards)
- Relies on third-party processors like Stripe, meaning costs aren't eliminated, just passed through
- May require additional tools for more advanced fundraising needs like auctions or raffles
Ratings:
"It was free and easy to deploy on our sites. People were able to make pages and we were able to put forms on our sites."
— Jon
Why These Nonprofits Left PayPal (And What They Saved)
Once nonprofits move beyond basic donation collection, the impact of switching from PayPal becomes a lot more tangible. Not just in fees saved, but in time, clarity, and how fundraising actually feels to manage.
Youth Sports: Polar Bear FC
Instead of chasing payments across multiple apps (PayPal, Venmo, Cash App, and Square), everything moved into one place, making it easier to track registrations, confirm payments, and reduce confusion for both organizers and families.
- Financial savings: $3,881 saved on fees (equivalent to 36 athletes' registration fees)
- Donation volume: $77,627 raised through a ticketed event
- Mission impact: 36 athletes' registration fees were covered with the savings
"Payment was always the bane of existence… Did this athlete pay the club Venmo or the coach Venmo?"
— Samuel Martin, Founding Artistic Director
> Polar Bear FC - Read the full case study!
Animal Rescue: SPCALL
With high donation volume, transaction fees added up quickly. Reducing those costs allowed more funding to go directly toward animal care, without changing how donors give.
- Financial savings: $7,000 saved on fees after switching from PayPal to Zeffy
- Donation volume: ~65,000 transactions, raising $125,000 for 14 municipalities
- Mission impact: Covered veterinary care and adoption preparation with the fees saved
"Our campaigns link to the Zeffy forms, which are easy for everyone to fill out. We were lucky that online donations were possible, because with the pandemic, it gave us a big helping hand."
— Corrine, SPCA
> SPCALL - Read the full case study!
Church: Church in the Wild
Recurring giving became easier to manage, and the savings from reduced fees were redirected into programs that directly supported the community.
- Financial savings: $2,138 in fees saved switching from PayPal to Zeffy
- Donation volume: $42,760 raised through donations, ticketing, and eCommerce
- Mission impact: Funded 3 years of carpooling services with the cost savings
"I knew I had found the magical unicorn of giving platforms!"
— Corey Turnpenny, Pastor
> Church in the Wild - Read the full case study!
Faith-based nonprofit: Autism Meets Faith
By moving away from PayPal and similar tools, Autism Meets Faith was able to embed donation forms directly on their site, streamline their fundraising campaigns, and keep more of each donation — turning what would have been lost to fees into direct support for families.
- Financial savings: $1,952 saved in fees after switching from PayPal
- Donation volume: $39,000+ raised through online donations and campaigns
- Mission impact: Funded 9 therapy grants for children with autism using the savings
"With PayPal, $50 donations became $48 — the fees added up fast. Switching saved us nearly $2,000 this year alone. That covered 9 therapy grants."
— Holly Odogwu, Founder & CEO
> Autism Meets Faith - Read the full case study!
When It's Time to Move Beyond PayPal
If your nonprofit looks like any of these, it may be time to consider an alternative:
- You're managing payments across multiple tools: A more centralized platform can save time and reduce confusion.
- You rely on frequent or smaller donations: Transaction fees can quietly add up and reduce your total impact.
- You're running events, registrations, or recurring programs: Tools built for nonprofits can replace manual work and disconnected systems.
If that sounds like you, it's worth exploring why many organizations eventually move away from PayPal, and what to look for instead.
Learn How Much PayPal Really Costs
How to Choose the Right PayPal Alternative
A good PayPal alternative should make it easier to run your fundraising day-to-day, not add more steps. That usually comes down to keeping more of what you raise, reducing manual work, and creating a smoother experience for your donors.
Here's what to pay attention to:
1. Simple System to Process Donations
Look for a platform that makes it a great process for someone to give, whether they're on their phone, laptop, or standing in front of you at an event. Fewer steps usually means fewer drop-offs.
Things like payment links, QR codes, and tap-to-pay can make a big difference, especially for small teams running events or sharing donation links quickly.
2. Mobile Responsiveness
A lot of donations happen on mobile. If a page is hard to navigate or takes too long to load, people tend to drop off.
A clean layout, clear buttons, and a quick checkout flow can help more donors actually complete their gift.
3. Zero-Fee Donations
Our research shows that donors are more likely to hesitate when they feel a portion of their gift is lost to fees or unclear costs. Many donors also notice when part of their gift is taken out for processing.
Some platforms now reduce or eliminate fees entirely, while others rely on standard processing rates or ask donors to cover them. It's worth understanding exactly what you'll keep from each donation.
4. Donor Management
Streamlined donor management is essential for nonprofits, especially if you're building your community. Look for tools that let you easily see who donated, track giving history, and follow up without exporting spreadsheets or using multiple systems.
This is where many teams start to outgrow PayPal.
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
When something goes wrong with a payment, it usually needs to be fixed quickly.
Having access to responsive support — especially from a team that understands nonprofits — can save time and prevent missed donations. This matters even more if you're accepting payments across different methods or locations.
FAQs
Does Zeffy use Stripe?
Yes. Zeffy uses Stripe to securely process donations. This means nonprofits benefit from Stripe's enterprise-grade payment infrastructure while Zeffy covers the processing fees, allowing organizations to keep the full amount of each donation.
Is Stripe safer than PayPal?
Both Stripe and PayPal are secure and widely trusted. Stripe is often preferred for its modern infrastructure and advanced fraud protection, while PayPal is known for its familiarity and widespread use. The right choice depends on your setup and how you plan to accept donations.
Who is PayPal's biggest competitor?
Stripe is one of PayPal's main competitors as a payment processor, offering flexible online, recurring, and in-person payment options. For nonprofits, there are also platforms like Zeffy, Give Lively, and Donorbox that combine payment processing with fundraising tools, which can make them a better fit depending on your needs.
Is there a free alternative to PayPal?
Some platforms offer ways to reduce or eliminate fees. For example, Zeffy covers all transaction and processing fees through optional donor tips, allowing nonprofits to keep the full value of each donation. Other tools may reduce fees or give donors the option to cover them at checkout.
Do nonprofit organizations pay credit card processing fees?
In most cases, yes. Payment processors typically charge a percentage plus a fixed fee per transaction. Some platforms reduce these costs or offer alternative models, such as optional donor contributions, which can help nonprofits retain more of each donation.
Is Venmo a good alternative to PayPal for nonprofits?
Venmo can be a helpful addition, especially for mobile-friendly, peer-to-peer giving. However, it's typically used alongside other tools, since it doesn't offer full fundraising features like donation forms or donor management.
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