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Writer's pictureJonathan Rosenblum

7 Best Payment Processors for Nonprofits

Want to know the secret to maximizing your nonprofit's donations?


It starts with your payment processor!


As someone who's helped countless nonprofits optimize their donation systems, I can tell you that choosing the right payment processor isn't just about fees - it's about creating a seamless donation experience that keeps supporters coming back.


Let's dive into this comprehensive comparison of the best payment processors that will help your nonprofit thrive.

Payment Processor

Best For

Best Feature

Processing Fees (Credit + Debit)

Payout Time

Bloomerang

Simple Donor Database Integration

Donor Management Integration

2.2% + $0.30 per transaction

Daily deposits, two-day delay

PayPal

Small to Mid-Sized Nonprofits

PayPal Giving Fund

1.99% + fixed fee per transaction

2-3 business days

Stripe

Tech-Savvy Nonprofits

Developer-Friendly API

2.2% + $0.30per transaction

Daily deposits, two-day delay

DonorBox

Maximizing Recurring Donations

Recurring Donation Platform

1.5% platform fee + processing fee

2-3 business days

Zeffy

Minimizing Donation Fees

0% Platform Fee Policy

0% per transaction

1-3 business days

Square

In-Person Donations

Point-of-Sale Integration

2.9% + $0.30 per transaction

1-2 business days

Security-Focused Nonprofits

Advanced Fraud Detection

2.9% + $0.30 per transaction + $25/month

3-5 business days



Bloomerang (Best for Simple Donor Database Integration)


Best for:


  • Organizations prioritizing donor database integration

  • Nonprofits with a focus on recurring giving programs

  • Teams wanting to minimize manual data entry

  • Organizations that value comprehensive donor reporting


Best Feature:


Donor Management Integration


Bloomerang Payments' native integration with the its donor management system can reduce your nonprofit's administrative costs.


This integration means every donation automatically syncs with your donor database, eliminating the manual data entry that I've seen plague many nonprofits.


Donor Cover Fees


Bloomerang's donor fee offset feature can potentially save you thousands in processing fees.


Here's how it works:


  • During checkout, donors are presented with an option to cover processing fees.

  • This feature alone has helped my nonprofit clients save thousands in processing fees annually.


Fee Structure


Bloomerang's transaction fee model:


  • Credit and Debit Payments: 2.2% + $0.30 for credit and debit card payments

  • ACH transactions: 0.8% + $0.30


Accepted payment methods: Visa, Mastercard, American Express, Discover, ACH, JCB, Apple Pay, Google Pay, Microsoft Pay, Diners Club,


Payout time: 2 business days


Notable Benefits


With Bloombergs integrated donor management system, you can:


  • Send personalized emails to increase recurring donations

  • Save time using Recurring Donation Ask template

  • Increase donations by tracking and maximizing donor engagement level

  • Center your focus by viewing donation timelines, setting tasks to engage with donors, and executing tasks all within the same software

  • Integrate with Quickbooks for simple and compliant financial reporting


Fundraising Tools


This platforms lets you create customizable donation pages which drives higher conversion rates. You can add:


  • Your brand elements: font, theme colors, and imagery

  • Smart donation amounts that adapt based on each donor's giving history and capacity, helping you maximize contributions.

 

Schedule a free 30-minute consultation to learn more about Bloomberg Payments or other nonprofit donation processors.


I'll help you:


  • Evaluate your current payment processing costs and identify potential savings

  • Compare features across top nonprofit payment platforms based on your needs

  • Assess integration requirements with your existing tech stack

  • Create a custom implementation timeline and migration plan

  • Understand available security features and compliance requirements

  • Review nonprofit-specific discounts you may qualify for


Book your consultation today to start optimizing your donation process and reducing processing fees.



 

PayPal (Best for Small to Mid-Sized Nonprofits)


PayPal is ideal for:


  • Nonprofits just starting their online fundraising journey

  • Organizations needing quick, low-cost donations processing

  • Charities seeking international donation capabilities

  • Nonprofits running peer-to-peer fundraising campaigns


Best Features


PayPal Giving Fund


The PayPal Giving Fund is a platform that helps people support their favorite charities online through donations made via PayPal.


There's no transaction fee for Giving Fund donations, meaning you receive 100% of every dollar.


Mobile Optimization


PayPal's mobile-optimized donation experience makes giving seamless across all devices.


Fee Structure


PayPal's nonprofit pricing model:


  • Standard Rate: 1.99% + fixed fee per transaction

  • PayPal Giving Fund: 0% fees for registered nonprofits

  • International Transactions: Additional 1.5% fee

  • Digital Wallet Payments: No additional fee


Accepted payment methods: PayPal, Venmo, Apple Pay, Visa, Mastercard, Discover, American Express


Payout time: 2-3 business days


Notable Benefits


Easy Donation Integration


PayPal's customizable donation tools simplify online giving through:


  • Embedded pop up displays that keep supporters on your website

  • Smart suggested giving amounts to boost donations

  • Program-specific giving options for targeted fundraising


Fundraising Tools


The platform offers versatile donation options to maximize giving:


  • Simple donation buttons for quick implementation

  • Customizable checkout pages with your branding

  • Social media fundraising integration

  • Peer-to-peer fundraising capabilities


For organizations prioritizing ease of use and rapid deployment, PayPal's combination of simple setup and comprehensive features makes it a compelling choice in the nonprofit payment processing space.


Stripe (Best for Tech-Savvy Nonprofits)


Best for:


  • Tech-savvy nonprofits needing advanced customization

  • Organizations accepting international donations

  • Nonprofits needing instant access to funds

  • Teams with complex integration requirements

  • Organizations running multiple fundraising campaigns


Best Features


Developer-Friendly API


Stripe's robust API capabilities enable seamless integration with virtually any fundraising platform, website, or donor management system.


This flexibility allows you to create custom donation experiences while maintaining security.


Instant Payouts: Quick Access to Donations


Stripe's instant payout feature helps nonprofits manage cash flow more effectively.


Here's how it works:


  • Receive donations in your bank account within minutes instead of days

  • Enable instant transfers for a small additional fee (1% of transfer amount)

  • Schedule automated transfers based on your organization's needs

  • Access funds 24/7, including weekends and holidays


Fee Structure


Stripe's nonprofit pricing model:


  • Standard Rate: 2.2% + $0.30 per successful card charge (discounted nonprofit rate)

  • International Cards: Additional 1% fee

  • Instant Payouts: 1% of transfer amount

  • ACH Payments: 0.8% (capped at $5)


Accepted payment methods: Visa, Mastercard, Discover, American Express, ACH, JCB, China UnionPay, Diners Club


Payout time: Daily deposits with a two-day delay


Notable Benefits


With Stripe's comprehensive payment platform, you can:


  • Accept donations in 135+ currencies with automatic conversion

  • Implement strong fraud prevention with Stripe Radar

  • Access detailed analytics and reporting tools

  • Set up automated recurring donation recovery

  • Create custom donation experiences with Elements UI


Fundraising Tools


This platform offers flexible donation integration capabilities including:


  • Embeddable donation forms that maintain your branding

  • Mobile-optimized checkout experience

  • Smart payment routing for higher authorization rates

  • Dynamic 3D Secure authentication for enhanced security



DonorBox (Best for Maximizing Recurring Donations)


DonorBox is ideal for:


  • Small to medium-sized nonprofits seeking affordable donation tools

  • Organizations focused on building monthly giving programs

  • Nonprofits needing multilingual donation capabilities


Best Feature


Recurring Donation Platform


DonorBox's recurring donation system drives sustainable funding through smart donor retention tools and flexible subscription options.


Donors can easily select flexible giving frequencies (weekly, monthly, quarterly, annually), helping you maximize predictable revenue streams.


Fee Structure


DonorBox's nonprofit pricing model:


  • Platform Fee: 1.5% for nonprofits

  • Credit Card Processing: 2.9% + $0.30 (Stripe/PayPal rates)

  • ACH/Bank Transfer: 0.8% + $0.30

  • Free Plan Available: For organizations raising under $1,000/month


Accepted payment methods: Credit card, PayPal, Google Pay, Apple Pay, ACH, SEPA and iDEAL.


Payout time: 2-3 business days


Notable Benefits


With DonorBox's integrated giving platform, you can:


  • Create donation forms in multiple languages

  • Offer suggested giving amounts based on campaign types

  • Enable company matching gift tools to double donations

  • Track donor engagement with built-in reporting tools

  • Deploy donation forms across multiple websites or campaigns


Fundraising Tools


This platform provides conversion-optimized donation forms to boost giving rates.


You can add:


  • Mobile-responsive designs that work across all devices

  • Multiple currency support for international donations

  • Custom branding elements including logos and color schemes

  • Smart donation amounts that adjust based on campaign type and donor history


Zeffy (Best for Minimizing Donation Fees)


Zeffy is ideal for:


  • Nonprofits seeking zero-fee fundraising

  • Nonprofits looking to maximize their donation dollars

  • Teams needing simple, straightforward fundraising tools


Best Feature


0% Platform Fee Policy


Unlike other processors that charge platform fees, Zeffy covers all costs through optional donor contributions.


Keep in mind, this approach can lower donor retention rates and potentially impact long-term fundraising success.


In my experience consulting with nonprofits, I've observed that while the zero-fee model is attractive initially, some donors express fatigue when asked to cover both processing fees and platform contributions.


This can lead to:


  • Reduced recurring donation conversions

  • Lower overall donor lifetime value

  • Increased donation abandonment rates


Here's how it works:


  • Donors are given the option to add a contribution to support Zeffy's platform

  • All processing fees are covered by Zeffy, regardless of donor contribution

  • Organizations receive their full donation amount


Fee Structure


Zeffy's pricing model:


  • Credit and Debit Payments: 0% platform fee

  • ACH transactions: 0% platform fee


Accepted payment methods: Visa, Mastercard, American Express, Discover, ACH JCB, UnionPay, Apple Pay, Google Pay,


Payout time: 1-3 business days


Notable Benefits


With Zeffy's integrated fundraising platform, you can:


  • Access comprehensive donor management tools at no cost

  • Generate tax receipts automatically

  • Create unlimited fundraising campaigns

  • Track donor engagement and giving patterns

  • Export detailed reports for financial reconciliation

  • Manage event registrations seamlessly


Fundraising Tools


This platform offers modern fundraising features to boost your donation success:



Square (Best for In-Person Donations)


Square is ideal for:


  • Nonprofits that frequently host fundraising events

  • Organizations needing both online and in-person payment solutions

  • Teams requiring mobile donation capabilities

  • Nonprofits wanting simple financial reporting and analytics


Best Features


Point-of-Sale Integration


Square's mobile point-of-sale system transforms your smartphone or tablet into a donation processing terminal, perfect for fundraising events and on-the-go collections.


The system allows your team to collect donations anywhere with cell service or WiFi, making it ideal for charity events, auctions, and street fundraising.


Multi-Channel Donations


Square's omnichannel payment processing lets you accept donations across all channels seamlessly.


Here's how it works:


  • Accept in-person payments via contactless, chip, or swipe

  • Process online donations through your website

  • Send digital invoices for pledge fulfillment

  • Track all transactions in one unified dashboard


Fee Structure


Square's pricing model:


  • In-Person Payments: 2.6% + $0.10 per tap, dip, or swipe

  • Online Donations: 2.9% + $0.30 per transaction

  • Virtual Terminal: 3.5% + $0.15 per transaction


Payout time: 1-2 business days


Notable Benefits


With Square's integrated payment system, you can:


  • Generate detailed reports for board meetings and tax purposes

  • Track donation patterns across different channels

  • Manage staff permissions and access levels

  • Accept payments offline with automatic syncing

  • Access real-time analytics on donation patterns


Fundraising Tools


Square's platform offers versatile payment solutions including:


  • Mobile card readers for event donations

  • Digital receipt options with customizable thank-you messages

  • QR code payment options for contactless giving



Authorize.Net (Best for Security-Focused Nonprofits)


Authorize.Net is ideal for:


  • Large nonprofits handling sensitive donor data

  • Organizations with complex recurring donation programs

  • Nonprofits requiring advanced fraud prevention

  • International organizations accepting multiple currencies


Best Feature


Advanced Fraud Detection


Authorize.Net's Advanced Fraud Detection Suite (AFDS) provides enterprise-level security that protects both your donors and your organization from fraudulent transactions.


This robust system uses machine learning to identify and block suspicious donations while ensuring legitimate contributions process smoothly.


Fee Structure


Authorize.Net's pricing structure:


  • Monthly Gateway Fee: $25

  • Transaction Fee: 2.9% + $0.30 per transaction


Accepted payment methods: Visa, Mastercard, American Express, Discover, ACH, E-check, JCB, Visa SRC, PayPal, Chase Pay, Apple Pay


Payout time: 3-5 business days


Notable Benefits


With Authorize.Net's security-first platform, you can:


  • Accept donations in multiple currencies

  • Access detailed transaction reporting

  • Set up customized fraud filters

  • Integrate with major accounting software


Choosing the Right Processor


Choosing the right payment processor is crucial for your nonprofit's fundraising success.


By carefully evaluating factors like processing fees, donor experience, integration capabilities, and available payment methods, you can select a solution that supports your long-term growth.


Consider starting with a platform that aligns with your organization's size and technical capabilities – whether that's Bloomerang's robust CRM integration for established nonprofits, Zeffy's zero-fee platform for smaller organizations, or another solution we've discussed.


Remember that the best choice isn't always the cheapest option; focus on finding a processor that helps you build stronger donor relationships while efficiently managing your donations.


Ready to take the next step?


Schedule a consultation to discuss which payment processor best fits your nonprofit's unique needs and goals.



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About

My name is Jonathan Rosenblum

As a payment processing consultant, I help businesses optimize their transaction systems and reduce costs. After founding a successful nonprofit, I discovered my passion for streamlining payment solutions. With an MBA from American Public University focusing on business strategy and finance, I combine academic expertise with hands-on experience to help clients navigate the complex world of payment processing. I specialize in negotiating better rates, implementing efficient systems, and providing personalized solutions that drive business growth.

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