Payment processor for a nonprofit taking online donations

For a U.S. nonprofit taking online donations, Givebutter is a good place to start if you want a ready-made donation page and donor tools without an upfront subscription. With optional donor tips enabled, Givebutter says the nonprofit pays no platform or processing fees; if tips are off, a 3% platform fee plus processing fees applies. (help.givebutter.com)

Other options, depending on what you need:

• Stripe — A solid choice if you already have a website or developer support. Eligible nonprofits can request discounted processing rates; eligibility includes being a registered nonprofit and using the account primarily for donations. (support.stripe.com)
• Donorbox — Useful for embedded donation forms and recurring giving, but check the total: Donorbox charges a platform fee, and Stripe or PayPal processing fees are separate. (donorbox.zendesk.com)
• PayPal — Simple if your donors expect PayPal or Venmo. PayPal lists a discounted rate for confirmed charities, but verify the current rate and eligibility for your account before choosing it. (paypal.com)

Quick recommendation: Choose Givebutter for an easy all-in-one setup; choose Stripe if you want to integrate payments directly into your existing website. Compare the total cost, recurring-donation features, donor records, and how donations are receipted—not just the advertised processor rate.

Short answer: For most small U.S. nonprofits, PayPal (if you're an approved charity) or Stripe is the cheapest processor. If you want donation pages, donor records, and tips included, a giving platform like Givebutter or Zeffy may cost less overall. Fees change often, so confirm current rates before you choose.

Processors

• PayPal: Published pricing is 1.99% + $0.49 for confirmed charities. Unconfirmed charities pay more. The charity rate requires application and pre-approval. Funds typically arrive in about a business day.
• Stripe: The standard online rate is 2.9% + $0.30. Stripe offers discounted processing for verified 501(c)(3) organizations: 2.2% + $0.30. However, Stripe confirms it offers a nonprofit discount but does not publish the rate, so you must apply and ask. Stripe suits teams that want custom donation forms, since you'll need to build your own donation forms or use third-party tools.
• PayPal vs. Stripe on a $50 gift: One comparison estimates ~$1.75 (3.5%) on Stripe and ~$1.49 (3.0%) on PayPal's confirmed charity rate, based on published rates. Stripe is usually better on very small gifts. Many nonprofits offer both, since PayPal is trusted by donors who won't type a card number.
• Square: Mainly useful for in-person events. Online donations are 2.9% + $0.30 in one comparison.

All-in-one giving platforms

• Givebutter: With tips on, it can cost the nonprofit nothing, since the nonprofit pays 0% platform and 0% processing. With tips off, Givebutter charges a flat 3% platform fee on every campaign type, plus card processing.
• Zeffy: Zeffy charges your nonprofit nothing, not even processing, and asks donors for a contribution at checkout instead. It is available only in US, Canada and UK only.
• Donorbox: Charges a platform percentage on top of processing. One source lists 2.95% (up to 3.95% on some features). Its Pro plan is $139 per month.
• Avoid stacking fees: The 1.5% platform fee (on the free plan) stacks on top of Stripe/PayPal processing fees with some tools, which can push the total well above the processor's rate.

Caveats

• Sources disagree on some rates. For example, one lists PayPal's standard donation rate as 2.89% + $0.49 for non-confirmed charity donations, while another gives the confirmed rate as 2.2% for Stripe-style discounts. Check each provider's current fee page.
• Many giving tools route payments through Stripe or PayPal underneath, so the processor's fee still applies.

If you tell me your annual donation volume, whether you're in the U.S., and whether you already have a website or CRM, I can narrow this to one or two options.

Selecting the right payment processor for your nonprofit depends on your organization's size, technical capacity, and fundraising strategy. There is no single "best" provider, but several options are designed specifically to support nonprofits by offering discounted rates, platform integrations, and donor-friendly features.

Top Payment Processing Options for Nonprofits

When evaluating providers, consider both the transaction fees and the fundraising features (such as recurring donations, donor data management, or event registration).

• For Low-Fee / "Zero-Fee" Models:
  • Zeffy: Specifically built for nonprofits, Zeffy is unique for charging no platform or transaction fees. They operate on a model where donors have the option to add a voluntary contribution to cover the processing costs.
  • Givebutter: Widely used for its versatility, it allows nonprofits to accept many payment methods (cards, ACH, Venmo, digital wallets). It often utilizes a "donor-covered fee" model, where supporters can choose to cover the transaction costs, allowing your organization to keep 100% of the donation.

• For Trusted & Widely Recognized Options:
  • PayPal: Highly familiar to donors, which can help increase conversion rates. PayPal offers a discounted rate for verified 501(c)(3) organizations.
  • Stripe: A powerful, developer-friendly option that is highly flexible. It offers competitive nonprofit-specific rates and integrates with a vast array of fundraising software.

• For All-in-One Fundraising & CRM Platforms:
  • CharityEngine: An integrated solution that combines a donor CRM with a built-in payment processor. It is ideal for larger nonprofits that want to manage data, payments, and reporting in one place.
  • Bloomerang: Known for its strong focus on donor data management, it offers integrated payment processing that helps keep donor information secure and actionable.

Key Considerations for Your Choice

To choose the right partner, weigh these factors against your organization’s current needs:

1. Effective Fees: Don't just look at the advertised rate. Calculate the "effective rate" by factoring in any monthly fees, setup costs, and whether the platform allows you to pass the processing fee on to the donor.
2. Donor Experience: Can donors pay quickly without creating an account? Are there options for Apple Pay, Google Pay, or recurring monthly gifts? A smooth experience directly correlates to higher donation conversion rates.
3. Integration: Does the processor "talk" to your existing tools? If you use a specific CRM (like Salesforce or HubSpot) or a website builder (like WordPress), ensure the payment processor has a native integration to save your team from manual data entry.
4. Security & Compliance: Ensure the provider is PCI-compliant and reputable. Using a well-established processor builds trust with your donors and protects their financial data.

Summary Recommendation

• Small/Startup Nonprofits: Look at Zeffy or Givebutter to minimize costs and access easy-to-use fundraising tools.
• Established Nonprofits: Consider Stripe for its flexibility or an all-in-one platform like CharityEngine if you need robust CRM and data management capabilities.

Disclaimer: Fee structures can change frequently. Always visit the provider's official website or contact their sales team to verify their current pricing for registered 501(c)(3) organizations.

For a U.S. nonprofit, Stripe is a good default if you want donations to go directly through your website and need recurring gifts or integrations. Eligible nonprofits can apply for discounted processing; Stripe says eligibility depends on nonprofit status, region, and having at least 80% of payment volume from tax-deductible donations. Confirm the rate and terms for your account before choosing it. ¹

Other options:

• PayPal: Familiar to many donors and offers a confirmed-charity rate of 1.99% + $0.49 per domestic donation; approval is required. ²⁵
• Zeffy: A donation platform that says it charges nonprofits no platform or processing fee, using optional donor contributions to fund the service. Check that its tools and donor experience fit your needs. ¹⁵

Quick recommendation: choose Stripe for flexibility and direct website integration; PayPal if donors specifically prefer PayPal; consider Zeffy if minimizing fees is the priority. Compare the total cost—including any fundraising platform fee—and check support for recurring donations, donor receipts, and your donation-management system. Rates and eligibility can change.