The PayPal donate button is a popular choice for nonprofits looking to accept online donations, but it has several limitations that can hinder your fundraising efforts.
From transaction fees to limited branding options and the inability to send automated tax receipts, there may be more effective solutions for your organization than relying solely on the PayPal donate button.
In this article, we'll explore how the PayPal donate button works, its pros and cons, and, most importantly, introduce you to Zeffy – a purpose-built, 100% free alternative designed specifically for nonprofits.
How Does the PayPal Donate Button Work: 5 Steps to Set it Up
The PayPal donate button offers a simple, convenient, and secure way to collect donations from all major credit and debit cards.
Once you've created a button for your website, you can place it anywhere. When donors click on it, they will be directed to the PayPal site to complete their payments.
Nonprofits that want to create a PayPal donation button can follow the given steps:
1. Open the Button Page
- Open the PayPal buttons page at https://www.paypal.com/buttons/
- Sign up or log in to the PayPal business account or personal account.
- Buy a button and add your nonprofit’s details.
2. Choose the Style of the Button
- Choose your country and language.
- Select between the PayPal button style given or upload your own image. Ensure the image is in PNG, JPG, GIF, or BMP format.
- Select Continue.
3. Set up the Button
- Upload the organization's logo and the cover image to customize the button.
- Enter your organization's purpose (optional).
- Select between a pop-up or full-page donation experience.
- Select Continue.
4. Customize Donation Details
- Choose the primary currency to receive donations.
- Set up specific preset amounts or enable them to add their custom amount.
- Select whether to allow donors to make recurring monthly donations.
- Choose whether to enable donors to increase their donations to help offset the cost of fees.
- Choose whether to let donors pick specific programs for their donation.
- Select Build it and Save button.
5. Integrate the Donate Button
- Add the button to your website by copying and pasting the generated HTML code.
- Use the shareable URL with social media, emails, and other notifications.
- Print the QR code to use on physical materials or at events.
Pros of Using a PayPal Donate Button
1. Easy to Set Up
You can create PayPal donate button with a few clicks - no programming skills are required. Embedding it on your donation page or website simply requires copying and pasting the HTML code generated. There is also no cost associated with setting up the donation button on your website.
2. Secure and Reliable
PayPal has an automatic fraud detection feature, helping protect your organization and its donors. It also complies with PCI’s (Payment Card Industry) rules, so your donors can rest assured that their financial information will be kept confidential.
3. Connects with Various Third-Party Systems
The platform collaborates with the most prominent CRM tools like Bitrix24, Salesflare, ActiveCampaign, etc. You can also connect your fundraising platforms to offer PayPal as a checkout option for charities and nonprofits.
Cons of Using a PayPal Donate Button
1. Takes Donors to a Third-Party Website
Making donations on PayPal can make donors feel less secure and prevent them from following through with the donation as they are redirected to a third-part website.
Zeffy’s 100% free online donation forms can be embedded directly into your nonprofit’s website, allowing donors to make a donation without leaving the page.
2. Limited Branding and Fundraising Options
PayPal's limited customization options can make creating a fully branded donation experience challenging. Without the ability to incorporate your nonprofit's colors, videos, and images, the checkout process may feel impersonal and confusing to donors, potentially leading to abandoned donations.
PayPal offers limited fundraising possibilities for nonprofits. It only focuses on donations and doesn't offer donor management or fundraising event capabilities like other alternatives.
Zeffy, the only 100% free alternative to PayPal, allows you to maintain consistent branding throughout your donor's giving journey. Create customize your donation forms and pages to match your nonprofit's color palette, logo, typography, and imagery, and build a seamless and recognizable experience for your supporters.
3. No Option to Send Tax Receipts to Donors
While PayPal immediately shares donation receipts with donors, nonprofits will have to manually send emails to donors with tax-deductible information. This not only wastes nonprofits' time but also does not offer an optimal donor experience. Supporters will have to keep track of receipts shared by PayPal and your nonprofit.
Unlike PayPal, Zeffy automates the process of sending tax-compliant donation receipts to your donors. Zeffy provides your donors with an annual summary of their tax receipts, simplifying their record-keeping and making it easier for them to claim tax deductions.
4. Processing and Transaction Fees
While PayPal typically charges 2.89% + $0.49 for each payment, nonprofit organizations with a 501(c)(3) status can benefit from lower processing fees. These reduced rates for eligible nonprofits are 1.99% plus $0.49 per donation processed through PayPal.
For example, for every $100 donation, you will receive $97.52 in your account and lose more than $2 to PayPal’s transaction fees.
Looking for a PayPal alternative that addresses these limitations? Check out Zeffy, a 100% free online donation platform designed specifically for nonprofits.
Alternatives to the PayPal Donate Button
While PayPal's donate button is a widely recognized option for accepting online donations, it has certain limitations that may not align with every nonprofit's unique needs. Transaction fees reduce the total amount your organization receives, while the lack of customization options may hinder your ability to create a fully branded giving experience.
Zeffy offers a 100% free, all-in-one fundraising platform tailored to the needs of nonprofits. Our innovative contribution model ensures that your organization retains the full amount of every donation without any deductions.
Why Zeffy is the Best PayPal Alternative for Nonprofits
- No transaction fees, ensuring every cent donated to the nonprofit goes directly to your nonprofit's bank account.
- Customizable donation forms that can be embedded directly on your nonprofit's website to maintain a consistent branding
- With Zeffy, you can easily add a donate button to your website, allowing supporters to make contributions without leaving your site.
- Automated tax receipt generation, saving time and enhancing the donor experience
- Comprehensive, all-in-one fundraising platform, including membership management, event ticketing, and online store creation
- Zeffy offers dedicated customer support to help you with any questions or issues you may encounter while setting up or managing your online fundraising.
Sign up for free and experience the difference of a purpose-built nonprofit fundraising platform.
FAQs on PayPal Donate Button
Is it safe to use the PayPal donate button?
Yes, it is completely safe to use the PayPal donate button to collect donations. PayPal's PCI-compliant platform conducts automatic fraud screenings while offering round-the-clock transaction monitoring.
How much does PayPal charge for donations?
PayPal has discounted prices for 501(c)(3) charities: 1.99% plus $0.49 per donation. Other organizations without the 501(c)(3) status need to pay 2.89% + $0.49 per transaction.
Can I accept donations with a personal PayPal account?
Yes, you can accept donations with a personal PayPal account. However, each donation will incur a transaction processing fee of 2.9% + $30. Your account won’t be eligible for a nonprofit status at PayPal.
To access reduced transaction fees, you can open a business account with PayPal and select “nonprofit” as the type of organization.
