Stripe makes accepting and processing payments easy, but it isn’t a tool reserved for businesses alone. Nonprofit organizations that accept donations can use Stripe at a discounted rate.
Stripe offers a secure and efficient way for nonprofits to accept and provide multiple payment options, including cards, wallets, and more. This versatility is crucial for nonprofits looking to broaden their donor base.
In addition to the in-platform features that Stripe has to offer—when integrated effectively with platforms like Salesforce Nonprofit Cloud or Sage Intacct—Stripe can transform the way your organization collects and manages donations by way of automated donation reconciliation, centralized donor data and real time financial insights.
Why Your Nonprofit Needs a Payment Processor
Before we dive into the specifics of Stripe, you might be wondering if your nonprofit even needs a dedicated payment processor. It’s a fair question, and it’s easy to think that your current setup might be “good enough.” But just like any tool, the right one can make all the difference—streamlining donations, building trust with your supporters, and ultimately helping your organization grow. Let’s take a moment to explore why choosing the right payment processor is about more than just transactions—it’s about creating a smoother experience for both you and your donors.
In one 2024 study, more than 60% of donors stated they prefer making donations online. This shift underscores the need for nonprofit organizations to adopt modern payment solutions. With over 1.5 million nonprofit organizations operating in the United States, the competition for donor dollars is fierce. Nonprofits can greatly benefit from implementing a reliable payment processor to accept donations online efficiently and securely.
Stripe's nonprofit rates and features are specifically designed to support recurring donations and online payments, making it a superior choice to other payment processors.Stripe ensures seamless donation processing and enhances nonprofit fundraising efforts.
Stripe's Special Features for Nonprofits
Let’s take a closer look at why Stripe is an excellent choice for your nonprofit. First and foremost, their reduced processing fees make accepting electronic donations significantly more affordable. Sure, to qualify for that discount, you need to process at least 80% of your donations through Stripe. But consider it a nudge towards a more streamlined donation process, which can help you create consistency and ease for your supporters.
While it’s true that this discount doesn’t apply to product sales or American Express transactions, that’s just a small trade-off for what you gain. Stripe empowers you to craft secure, customizable online donation forms with tools like Stripe Elements and Payment Links. This means you can set predefined donation amounts and personalize templates, making it simpler for donors to contribute to your cause. When you combine competitive fees with enhanced fundraising capabilities, you’re not just processing donations; you’re enhancing the entire donor experience. Once you start using Stripe, you'll see how it can elevate your fundraising efforts!
Recurring Donations: A Strategic Move for Nonprofits
Recurring donations can truly elevate your nonprofit's funding strategy by providing a reliable income stream without the need for constant reminders to donors. With Stripe, setting up these recurring contributions is straightforward, allowing you to engage with supporters who prefer to give on a regular basis. This approach not only smooths out your cash flow but also aids in revenue forecasting and planning for future initiatives.
We’ll give you the numbers: the average monthly online donation is $52 ($624 per year) compared to the average one-time gift of $128. According to Network for Good’s donation data, the average recurring donor will give 42% more in one year than those who give one-time gifts. That’s a notable difference that can add up quickly!
Donors have the flexibility to schedule their recurring payments via debit cards, credit cards, or ACH transfers, making it convenient for them. Now, what about the additional fee of 0.5% to 0.8% per transaction depending on the selected plan? Think of it this way: this fee is a small investment in ensuring a steady stream of revenue. The benefits of predictable funding and enhanced donor engagement far outweigh the costs. Once you embrace this model with Stripe, you’ll see how much it can contribute to your organization’s sustainability and growth.
Custom Donation Forms with Stripe Elements
Let’s chat about custom donation forms, shall we? No one knows how important it is to make your donors feel valued and understood better than you do, right? But how can you take that to the next level? That’s where Stripe Elements comes in. It allows nonprofits to create donation forms that really reflect your brand and mission—no need to juggle third-party tools that could add complexity.
As far as the form creation, there can be a bit of a learning curve involved. Some technical experience is helpful to get those forms just right. But think of it as an opportunity to elevate your donor experience. You want to provide a space where supporters feel connected to your cause, and that tailored touch can go a long way in fostering engagement and increasing contributions.
And if you’re thinking, “What if I just want something simple?” Stripe has customizable Payment Links for that too! These are perfect if you’re looking for an easier setup to accept one-time or recurring donations. It’s all about giving your organization the flexibility to meet donors where they are, making it a breeze for them to contribute. Whether you go all-in with custom forms or stick with Payment Links, Stripe helps you create a donation experience that aligns with your needs and values.
Applying for Stripe's Nonprofit Rates
Applying for Stripe's nonprofit rates is simple but requires preparation. You’ll want to start by signing up for a standard Stripe Payments account. To qualify for reduced rates, organizations must process 80% or more of their donations through Stripe and be a 501(c)(3) nonprofit.
To apply, email Stripe at nonprofit@stripe.com with organization details, proof of 501(c)(3) status, and tax-deductible donation confirmation. The review process takes up to two weeks, with discounted fees applied within 5-10 business days after approval.
Required documents include a valid EIN, an IRS confirmation letter, and, for EU organizations, a charity registry link or confirmation letter. Ensure all documentation is accurate for a smooth verification process.
Integrating Stripe with Your Nonprofit’s Software
Stripe offers extensive external integration options, making it compatible with various CRM platforms such as Salesforce Nonprofit Cloud, Virtuous, and other documented API platforms.. These integrations enhance donation management by providing tools for tracking, reporting, and analyzing payment data.
Popular Integrations for Nonprofits
Several popular software integrations can significantly enhance fundraising and donor management for your organization. For instance, embedding Stripe's payment buttons directly onto your website can improve the donor experience by making the donation process seamless. Integrating Stripe with an ERP system, like Sage Intacct, can also facilitate seamless donation processing and reconciliation, ensuring compliance with relevant tax regulations.
Managing Donations and Payments with Stripe
When it comes to accepting donations, flexibility is key for nonprofit organizations. Stripe truly shines here by supporting a variety of payment methods, including credit and debit cards, digital wallets like Apple Pay and Google Pay, and ACH transfers. This diversity ensures your donors can choose the payment method they prefer, which can significantly enhance their giving experience.
One of the standout advantages of using Stripe for nonprofits is the discounted payment processing fees tailored for charitable organizations. Here’s how the fees break down:
- Standard Credit Card Transactions (excluding AMEX): 2.2% + $0.30
- American Express Donations: 3.5%
- ACH Donations: 0.8% with a $5 cap per transaction
It’s important to note that while American Express donations incur higher fees, understanding your organization’s donation patterns can help you make an informed decision about whether Stripe is the right payment processor for you.
Tax Reporting and Compliance Made Easy
For nonprofit organizations, maintaining tax compliance is crucial to retain nonprofit status. Failing to manage this can lead to significant complications. One of the major benefits of using Stripe is the Stripe Tax feature, which simplifies the process of collecting and reporting financial information for both local and international taxes. Stripe Tax charges 0.5% per transaction, or 0.4% for those processing over $100,000 per month.
Additionally, Stripe provides 1099-K forms to any client processing at least 200 transactions annually with a total processing volume of $20,000 or more. For nonprofits managing a high volume of electronic transactions, these forms are invaluable for staying organized and ensuring smooth tax reporting. This feature helps take the hassle out of tax season, allowing your organization to focus on what truly matters—advancing your mission and making an impact in the community.
By leveraging Stripe's capabilities, you can streamline your donation processing and enhance your organization’s overall efficiency, making it easier than ever to focus on what you do best: serving your cause.
Comparing Stripe to Other Payment Processors
When it comes to choosing a payment processor, there are a variety of options to choose from.. Here's a quick breakdown of some popular choices to help you find the best fit:
Stripe
- Reduced Payment Processing Fees: Stripe offers discounted rates for nonprofit donations, including 2.2% + $0.30 for most credit cards.
- Recurring Donations: Nonprofits can easily set up recurring donations, providing predictable cash flow.
- Seamless Integration: Stripe integrates with a variety of nonprofit-specific software and platforms, making it adaptable for diverse fundraising strategies.
- Customization Options: Organizations can create personalized donation forms with Stripe Elements, offering flexibility in donation processing.
PayPal
- Discounted rates for 501(c)(3): Nonprofits pay 1.99% + $0.49 per online transaction.
- Cost comparison: Higher fixed fee than Stripe but lower variable fee, benefiting nonprofits with large donations.
- Features similar to Stripe: Includes extensive online tools, customizable by developers.
- In-person donations: PayPal offers in-person donation capabilities through PayPal iZettle devices and POS software.
Venmo
- Mobile Giving: As a mobile-first app for iOS and Android, Venmo caters to the increasing demand for convenient, on-the-go donations.
- No Recurring Giving Option: Venmo charity profiles lack the ability to set up recurring donations, which are crucial for donor retention.
- No Tax Receipts: Venmo doesn't offer automatic tax receipts; charities must manually acknowledge and send them.
- No CRM Integration: Donor information isn’t automatically transferred to CRM software, requiring manual data entry.
Ultimately, comparing payment processors ensures that your nonprofit organization will receive the best rates and features for you fundraising efforts, and efficiently meet administrative needs of your organization.
Why Choose Stripe Over Other Payment Processors?
Stripe really sets itself apart with its competitive nonprofit fees, which can significantly boost your fundraising effectiveness. Many organizations find its rates more favorable than other processors, allowing you to make the most of each donation.
Beyond the rates, Stripe offers customizable payment forms tailored to your organization’s branding, enhancing the donor experience. Its robust support and powerful API enable seamless integration with existing software tools, streamlining operations and improving data management. Additionally, the Stripe Tax add-on simplifies tax compliance, making it easier for your nonprofit to stay organized.
By choosing Stripe, you're not just getting a payment processor; you're gaining a partner dedicated to enhancing your operational efficiency and helping your organization maximize its fundraising potential.
Case Studies: Success Stories with Stripe
Numerous nonprofit organizations have successfully leveraged Stripe to streamline their fundraising efforts and improve operational efficiency. For example, Venn Technology has worked with over 90 nonprofits, helping them integrate Stripe and achieve their fundraising goals. Adopting Stripe has increased efficiencies, expanded donor reach, and ultimately enhanced fundraising efforts for these organizations.
OSU Alumni Associations's Integration Success
The Oklahoma State University Alumni Association (OSUAA) enhanced its donation processing and event management by integrating Stripe into its operations. Prior to this integration, OSU Alumni Association faced challenges with outdated systems that hindered efficient handling of payments and donations.
By adopting Stripe, OSU Alumni Association optimized its financial transactions, allowing for a more seamless and secure payment experience for donors and event participants. The implementation of Stripe not only improved operational efficiency but also facilitated better tracking and reporting of financial activities, ultimately contributing to increased donor engagement and satisfaction.
Getting the Most Out of Your Stripe Payment Platform
Optimizing your operations is essential, and integrating Stripe with your donor management and event registration tools can take your organization to the next level. This approach goes beyond just processing payments; it automates workflows and minimizes the need for manual data entry. Picture the ease of tracking donations and financial activities when everything is consolidated! Moreover, Stripe integrates well with CRM systems, enhancing donor management and communication.
To truly harness these advantages, consider partnering with experts for your software integration. Their specialized knowledge can help ensure smooth connectivity, allowing you to sidestep potential compatibility issues and data discrepancies. This strategic move frees you to concentrate on your core mission while boosting your operational efficiency. With the right support, you’ll see meaningful progress in no time!
Summary
If you're still not using Stripe, it's worth a serious look. Stripe is a game-changer for nonprofits. Not only does it make accepting donations a breeze, but with its discounted rates and integration options, it’s like your fundraising sidekick. Imagine being able to set up recurring donations, offer a wide range of payment methods, and get real-time financial insights without the constant spreadsheet chaos. Plus, it plays nice with your existing tools like Salesforce Nonprofit Cloud. Trust us, once you see how easy it makes donor management, you'll wonder why you didn't start using Stripe in tandem with your most important applications sooner.
Stripe to Sage Intacct Integrations from Venn Technology
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Let's help you get the most out of the great software you're already using by building custom integrations that enable your finance team to focus less on manual data entry and more on the organization’s mission.
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