Which Online Giving Platform is Right for Your Nonprofit?

The multitude of ways in which nonprofits can receive donations has drastically changed over the years with the ever-changing use of technology. While the tried and true hand-written check still has its popularity with many donors, there has been a gradual shift to online giving. As with many aspects of technology, there are multiple choices that a nonprofit can make when receiving online donations. We have done research on a few of the options that we run across on a frequent basis. Below is a list of the popular online donation platforms along with pros, cons, and pricing for each of the platforms.

 

PayPal

Pros

  • Easy setup and integration into existing nonprofit website
  • Donors do not need to have a PayPal account to donate
  • Donors can opt into automatic monthly giving
  • No monthly fees
  • Donations are secure – PayPal is PCI compliant
  • Nonprofit can download monthly statements and donor information such as mailing address, email address, and phone number
  • Money is easily transferred to Nonprofit’s checking account in 3-5 business days

Cons

  • Must go through non-profit verification before receiving special nonprofit rate

Pricing

  • Standard rate: 2.9% + $0.30 per transaction
  • Nonprofit rate: 2.2% +$0.30 per transaction
     

Facebook

Pros

  • Able to raise money directly from Nonprofit’s Facebook page
  • No fees if processing donation directly through Nonprofit’s Facebook page
  • Able to raise money through posts and Facebook live
  • Others can set up fundraisers on your behalf
  • Downloadable monthly statements
  • Facebook sends a payment receipt to donors
  • Donors do not have to leave Facebook, can make donation directly without going to separate webpage

Cons

  • Donors need to have a Facebook page
  • Payment may take up to a month to reach Nonprofit
  • Nonprofit may not receive all donor data such as mailing address, phone number, email address

Pricing

  • Donations through Nonprofit’s page – Free
  • Personal fundraiser’s rate: 2.6% + $0.30 per transaction
     

Stripe

Pros

  • Two-day rolling automatic bank transfer
  • Nonprofit can download monthly statements and donor information such as mailing address, email address, and phone number
  • Donations are secure – Stripe is PCI compliant
  • No monthly fees
  • Donors can opt into automatic monthly giving 

Cons

  • Slightly higher price

Pricing

  • Standard rate: 2.9% + $0.30 per transaction
     

Amazon Smile

Pros

  • No fees for Nonprofit
  • Nonprofit receives 0.5% of sales of qualified product

Cons

  • Donors must log into specific portal to reach Amazon Smile
  • Not well advertised- Charities need to do their own advertising
  • Not all products qualify for 0.5%

Pricing

  • Free
     

Qgiv

Pros

  • Easy to use donation pages
  • Event registrations
  • Able to accept in person donations
  • One control panel/website for all fundraising efforts
  • Unlimited customer support

Cons

  • Price

Pricing

  • 3.95% + $0.30 per transaction
     

Author: Chris Roche, Kollath CPA

 

 

 

Kollath

CPA

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Payroll.  Tax.  Accounting.  HR Consulting