Venmo for Nonprofits: A Guide to Digital Fundraising in 2025

Younger donors are increasingly asking nonprofits, "Can I just Venmo you?".

This shift isn't surprising when you consider that 84% of millennials donated to charitable causes in 2023, with digital payment methods being their preferred way to give?

In reality, many people now handle most of their financial transactions through mobile apps.

One platform that's gained impressive traction is Venmo, the peer-to-peer payment app with over 80 million active accounts. It's basically become synonymous with splitting dinner bills or paying rent.

Let me share the best practices I've developed from helping nonprofits successfully integrate Venmo. I'll also walk you through the key benefits that make it an attractive option and address the real challenges you should consider before integrating.

Let's get started!

Understanding Venmo’s Nonprofit Features

Source: WPGive

Venmo isn't designed for fundraising, but you can get some great benefits by incorporating it into your payment processing system.

As a payment processing consultant who runs a nonprofit that uses Venmo, I've experienced benefits and challenges. Here's everything I've learned that can help you make an informed decision.

What is Venmo?

Venmo is a peer-to-peer payment app that allows users to send and receive money instantly.

Originally designed for personal transactions, Venmo has expanded its features to accommodate nonprofit fundraising platforms. With the introduction of Venmo charity profiles, registered 501(c)(3) organizations can now create verified accounts to accept online donations directly within the app.

Unlike traditional nonprofit payment processing platforms, Venmo’s setup is geared toward casual and social giving, making it ideal for peer-to-peer fundraising campaigns and small contributions.

However, nonprofits should be aware of key factors such as tax receipt limitations and potential account management challenges.

How Venmo’s Charity Profiles Work

How Venmo Compares to PayPal and Other Fundraising Platforms

Why Consider Venmo for Your Nonprofit?

Advantages	Limitations
Convenience for donors	Lack of automatic tax receipts
Enhanced fundraising potential	Account setup challenges
Low transaction fees	Account transfer issues
Simple integration with other platforms	Platform inconsistencies
Social fundraising advantage	Venmo’s fundraising restrictions

Let's be real - if you're not making it super easy for people to donate, you're leaving money on the table.

After working with countless nonprofits across New York, I've seen firsthand how Venmo can be a game-changer. Here's why:

1. Convenience for Donors

Think about it - most of your donors are probably already using Venmo to split bills or pay their friends. So when they want to support your cause, it's like second nature.

No fumbling with credit card forms or remembering passwords. Just a few taps, and they're done.

2. It's Social Media for Donations

Here's why Venmo appeals to younger crowd - it turns donations into social moments.

When someone supports your cause, it shows up in their Venmo feed, which often sparks interest from their friends. I've seen this create some impressive ripple effects for fundraising campaigns.

3. The Fees Won't Break the Bank

Venmo keeps their fees reasonable. While you'll still pay something, the rates are generally lower than what you'd pay with traditional fundraising platforms.

That said, I always recommend comparing the specific rates with alternatives to make sure you're getting the best deal.

Standard Transaction Fees:

• 1.9% + $0.10 for digital payments

• No fee for donors sending payments

• Additional 1% fee for instant transfers to bank accounts

• Standard transfer to bank accounts (1-3 business days) is free

Tip: Consider incorporating transaction fees into your suggested donation amounts to maximize your net contributions.

Venmo vs Other Payment Processors

Payment Processor	Standard Transaction Fee
Venmo	1.9% + .10 per transaction
PayPal	2.2% + $.30 per transaction
CashApp	2.75%
Stripe	2.2% + $.30 per transaction
Square	2.6% + $.30 pertransaction

4. Perfect for Events

Venmo is a lifesaver during events. Those QR codes they provide are pure gold. Just print them on your event materials, and donors can contribute instantly.

I recently helped a local arts nonprofit set this up at their annual gala - the ease of giving notably increased their donations compared to previous years.

5. It Integrates with Other Tools

While Venmo isn't a complete donation management system, it works well with other platforms.

I often help nonprofits connect it with tools like Givebutter or PayPal to create a more robust fundraising setup. This way, you get the ease of Venmo while still maintaining solid donor tracking and management.

• Direct integration with PayPal for Nonprofits

• Compatible with most donor management systems

• API access for custom integrations

• Social media platform connectivity

Best Practice: While setting up your payment processing system, create a clear workflow that outlines how Venmo donations will be tracked, acknowledged, and integrated into your existing donor database.

Should You Start Using Venmo to Collect Donations?

Source: Double the Donation

I tell this to all my clients - it's not about replacing your existing systems. It's about adding another convenient way for supporters to help your cause.

In my experience, the organizations that thrive are the ones that give their donors options.

Making Venmo a part of your fundraising strategy can lead to remarkable benefits. However, it's important to also understand the challenges so you know how to navigate them.

Challenges and Limitations of Venmo for Nonprofits

While Venmo for nonprofits offers convenience and accessibility, it also comes with notable challenges that you should consider before relying on it for fundraising.

1. Donor Receipt Management

Tax receipts are vital for your donors, but Venmo doesn't automatically generate these receipts for tax-deductible donations.

Tip: Set up a system to link your Venmo transactions directly to your donor management platform.

2. Setting Up Your Account

Here's something I wish every nonprofit knew before jumping into Venmo: account setup isn't always straightforward.

I've seen a number of nonprofits have issues verifying their charity profiles. Plus, you'll need a mobile number for verification which I've witnessed trip up organizations that only have landlines.

3. Account Management

Here's a critical point about account management that often gets overlooked:

If your Venmo account manager leaves, you can't just transfer the account to someone new. You'll need to start fresh with a new account.

This is particularly challenging for organizations like PTAs and religious groups where leadership changes are common.

Quick fix: Use a role-specific email and shared mobile number rather than tying the account to one person.

4. Venmo's Feature Limitations

Let me be upfront about what Venmo can't do for your nonprofit:

• No recurring donation options (a big limitation for sustainability)

• Basic donor data collection at best

• Limited campaign tracking tools compared to other platforms

  
  

Think of Venmo as your quick-and-easy donation tool, not your complete fundraising solution.

Most successful nonprofits I work with use it alongside more robust platforms.

5. Technical Issues to Watch For

Here's a quirk that's bitten several of my clients: QR code donations work great on Android but can be problematic for iPhone users.

Some donors get redirected to Venmo's external website where the donation process breaks down.

Always test your donation process across different devices before a big campaign launch.

6. Avoiding Account Freezes

   
   

A word of caution from the trenches: Venmo can be strict about fundraising activities.

I've seen nonprofit accounts get frozen during major campaigns.

Unlike PayPal's nonprofit platform, which has clear guidelines, Venmo's policies around fundraising can be a bit murky.

Also worth noting: if you're looking to accept international donations, Venmo won't be your solution. I always recommend having a backup payment processor for global supporters.

Wrap Up

Here's my honest take after years of helping nonprofits with payment processing:

Venmo can be a valuable tool in your fundraising toolkit, but it shouldn't be your only tool.

It's great for mobile-first donors and quick transactions, but you'll want to pair it with more comprehensive platforms.

Consider Venmo as one piece of your larger digital fundraising strategy. When integrated thoughtfully with other tools, it can help you create a smooth, donor-friendly giving experience while ensuring you have all your nonprofit bases covered - from tax compliance to donor tracking.

Let's Talk About Venmo and Other Payment Solutions

Want to make Venmo work for your organization?

Let's talk about building a system that matches your specific needs and donor preferences.

Having founded and run a nonprofit myself, I know firsthand how crucial it is to get your payment processing right.

Every dollar saved on fees is another dollar toward your mission, and every friction point removed is another potential donor retained.

I'd love to help you. Let's schedule a free (no obligation) consultation where we can:

• Review your current payment processing setup

• Identify opportunities to reduce fees

• Discuss whether Venmo makes sense for your specific needs

• Create a roadmap for optimizing your donation channels

Schedule Your Free Consultation

As someone who's been on both sides - running a nonprofit and advising organizations on payment solutions - I can offer practical insights that come from real experience.

Let's chat!

-Johnny