For many nonprofits, handling transactions efficiently and cost-effectively can be a major pain. Many payment processors include hidden fees, are tough to navigate, and lack some key features necessary for effective fundraising.
In this complete guide, we'll delve into the ins and outs of Stripe for nonprofits, and the best alternatives to help you figure out which payment payment processor is right for you.
What is Stripe for nonprofits?
Stripe is an online payment processing platform that allows businesses, including nonprofits, to accept payments over the Internet.
Stripe for nonprofits is a popular, user-friendly, and secure solution for processing various payment methods—such as credit cards, debit cards, and ACH transfers.
What are the Stripe nonprofit fees?
Stripe offers discounted fees for qualifying nonprofits that use the platform.
Eligible nonprofits that will be processing 80% or more of donation payments on Stripe get access to reduced pricing of 2.2% + $0.30 per transaction.
Unlike lots of other payment processes—which often don't offer nonprofit discounts—using Stripe for donations doesn't include any other hidden fees.
However, it is important to note that other income outside of donations—like membership dues and ticket sales—are not eligible for discounted rates with your Stripe account.
What you need to apply for Stripe's nonprofit pricing
Only eligible nonprofits can access the discounted rate Stripe's payment processing fees. To apply to Stripe for nonprofits, organizations must supply the following information:
- EIN (Employer Identification Number) or a letter from the IRS stating 501(c)(3) status
- Confirmation of the primary email address
- Confirmation that greater than 80% of your payment volume will be tax-deductible donations
3 steps to start using Stripe's nonprofit discount
Creating a nonprofit Stripe account, and getting access to the Stripe nonprofit pricing, involves a few straightforward steps.
1. Gather necessary information
Before you start the account creation process, gather essential information about your nonprofit organization. In addition to the information listed above, your nonprofit will need to provide:
- EIN
- The organization's legal name
- The organization's physical address
- Bank account information for where you'll receive donations
2. Sign up for a Stripe account
- Sign up: Visit the Stripe website and click on the "start now" button to initiate the account creation process.
- Select account type: During the signup process, Stripe will prompt you to choose the type of account you want. Select "Nonprofit" as your business type.
- Provide necessary legal info: Fill out the required information about your nonprofit organization, including your EIN, legal name, address, and other relevant details.
- Link to bank: Input relevant bank account information.
- Create a Stripe account: Follow the remaining prompts to create a Stripe account, like setting up a username and password.
3. Verify your nonprofit status
In order to receive access to the discounted Stripe fees for nonprofits, Stripe requires verification of your nonprofit status. To verify, email Stripe at [email protected] using this email template:
Dear [Stripe],
I am sending the required information to register my nonprofit as a verified 501(c)(3), in order to receive the discounted Stripe nonprofit rates:
- [Insert nonprofit name]
- [Insert EIN number or a letter from the IRS designating your 501(c)(3) status]
- [Insert primary email address associated with your Stripe account]
- [Insert proof that greater than 80% of your payment volume will be tax-deductible donations.]
Thank you,
[Name]
After completing these steps, and receiving approval from Stripe, your nonprofit Stripe account should be set up and ready to use for online fundraising and payment processing.
What to look for when choosing a nonprofit payment platform
Stripe is a great choice for organizations looking for a simple, easy-to-use payment processor. However, it's important to consider alternative options to see if there is a different platform that's a better fit for your organization.
When choosing a payment platform for your nonprofit, it's important to look for a few key features.
- Ease of use: A user-friendly interface ensures that both donors and staff can navigate the platform without hassle.
- Mobile responsiveness: About 25% of donors give to charity from their mobile devices. That's why it's essential to choose a payment processor that's responsive and consistent across various devices.
- Security and compliance: Prioritize platforms with robust security measures to protect donor information. Your chosen platform should comply with relevant data protection and privacy regulations.
- Recurring donations: In the last year, monthly giving made up 17% of all online revenue. To avoid losing out on donations, an effective payment processor should accept regular gifts.
- Payment options: The platform should support a variety of payment methods (credit/debit cards, ACH, digital wallets) to accommodate donor preferences.
- Costs associated: Some payment processors, like Stripe, offer discounted rates to nonprofits. Some platforms (like Zeffy, 100% free!) always offer one of the best online donation platform—no verification process needed.
- Automated tax receipts: Not all payment processors send donors receipts with necessary tax information. Be sure that your chosen platform offers this automation, so your team can streamline their fundraising.
- Support: It's inevitable that your charity might face obstacles. Choose a platform with a robust knowledge base and unlimited support to help your team out in a pinch.
- Donor management tools: Choose a payment processor that integrates with a CRM or has one built in so you can streamline your donor management and payments.
- Customization: A payment processor should also come with the ability to design specific pages to help you create a perfect donation page.
- Nonprofit-specific tools: When it comes to fundraising, a payment processor has to do a lot more than accept donations. A great platform will come with lots of tools for nonprofits like donor management, P2P capabilities, event ticketing, and more.
3 alternatives to Stripe for nonprofits
While Stripe for nonprofits does offer discounted fees and has quite a few pros, there are lots of payment processors that offer better discounts, more features, and even better support.
Zeffy: Best for free solution—for all nonprofits
Unlike other payment processors like Stripe for nonprofits, Zeffy is the only zero-fee fundraising platform for fundraisers. That means no processing, platform, or monthly fees—plus no hidden fees, either. Plus, with Zeffy, nonprofits can create custom donation forms, charge membership fees, accept recurring payments and more.
Secure, easy to use, and built with nonprofits in mind, Zeffy is a one-stop shop for processing donations, and making the most out of your fundraising efforts. Trusted by 10,000+ nonprofits throughout North America, Zeffy is 100% transparent and 100% free.
Fees:
Zeffy : 0% fees. 🙂 Every other platform: 3% - 10% fees.
Pros:
- 100% free
- Online donations
- Event ticketing
- Memberships
- Peer-to-peer campaigns
- Automated tax receipts
- Unlimited support
- All-time transaction and tax receipts
- Contact information
- Custom donor profiles
- Custom donation forms
- Marketing and engagement tools
- No application process required
PayPal: Best for secure transactions
PayPal, like Stripe, is a popular payment processing platform. Like Stripe, the platform offers discounted fees for charities and has several great tools and gadgets for processing donations.
2.2% + $0.30 per transaction for eligible charities only
Pros:
- Easy navigation
- Embedded PayPal button
- Integrations with lots of third-party software
- Nonprofit-friendly tools
- Mobile friendly
- Recurring donations
Cons:
- Can handle fewer currencies than Stripe
- No customization
- No fundraising features or donor management
Google Pay: Best for mobile giving
Google Pay is another mobile-friendly payment processor with a sleek interface. Lots of nonprofits choose this Stripe alternative for the name recognition, and ease of use. Like Stripe for nonprofits, Google Pay is widely recognizable and trusted by thousands of users.
Fees:
None for domestic donations
Pros:
- No fees
- Trustworthy and reliable
- Encourages mobile giving
- Donors can preload multiple kinds of cards
- Recognizable
- Easy online transactions
Cons:
- Lack of donor data
- Isn't acceptable in all countries
Square: Best for donor data
Unlike lots of payment processors, Square for nonprofits is an excellent choice for organizations that want to capture donor data. Though the platform wasn't specifically designed with charities in mind, its secure and easy-to-use platform is a great fit for nonprofits in need of a payment processing solution.
Fees:
3.5% - $0.30
Pros:
- Collect donor data
- Versatile payment options
- Square reader for in-person payments
- Mobile app
- Great customer support
- Easy online payments
Cons:
- Large fees
- No nonprofit discount
- Lack of some other important fundraising features
- No receipts
Braintree: Best for organizations with developers
Braintree, owned by PayPal, is a payment processing platform that enables businesses and organizations to accept online and mobile payments. Mobile-optimized, the platform is often used by a wide range of businesses, including nonprofits, to process payments using multiple methods of giving.
Fees:
Up to 3.49% + $0.49 per transaction
Pros:
- Web and mobile-optimized
- Phone and email support
Cons:
- Difficult setup
- Requires a website developer
Authorize.net: Best for customer support
Authorize.Net, a payment gateway service that enables businesses and nonprofits to process transactions, offers charities tons of features. Various payment methods and customization options make it a great option.
Fees:
2.9% + $0.30 per transaction plus a monthly fee of $25
Pros:
- Mobile payments
- Multiple payment options
- Mobile app
Cons:
- Complex setup
- Fees
Venmo: Best for social media style giving
is a mobile payment service that allows users to make payments and transfer money to others using a mobile app. It's widely used in the United States and is known for its ease of use, especially for peer-to-peer transactions among individuals.
Fees:
1.9% + $0.10
Pros:
- Recognizable and trustworthy,
- Engaging social media style feed
- Easy use for younger generations
- Convenient
Cons:
- No recurring gift options
- No receipt information
- Lacks other nonprofit features
Cash App: Best for flexible giving options
Cash App, developed by Square, Inc., is a mobile payment service that allows users to send and receive money through a mobile app. Easy to use and quick to launch, using Cash App for donations allows nonprofits to enjoy a swift payment solution.
Fees:
3% per transaction made using a credit card, 0.5% -1.75% fee for instant deposits
Pros:
- Easy to use and set up
- Direct deposit
- P2P capabilities
- Send bitcoin, stocks, and more
Cons:
- No recurring payment options
- No receipts
- Limited features
- Poor customer service
Zeffy: The best free nonprofit payment processor
Stripe for nonprofits is a great option for organizations, but like a lot of payment processors, it's not specifically designed with charity work in mind. Stripe, like others, lacks crucial features essentials for a fundraising software for nonprofit. Like the ability to accept recurring donations, track donor data, and send automated tax receipts. Plus, most payment processors come with hefty fees—but not Zeffy, which is 100% free to use.
While every other platform takes fees away from your mission, Zeffy delivers 100% of it to your nonprofit. In the last year, nonprofits paid $3 billion in transaction fees. With Zeffy, nonprofit organizations can rest assured that they'll never be charged a cent, and that all donations are used to support their mission.
Stripe for nonprofits: FAQs
