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How To Easily Accept Donations For Your Nonprofit Organizations

Every penny makes a difference, which is why your nonprofit should accept liquid currency during donation drives. Though if you rely solely on cash, you may be leaving money on the table. This is because many donors prefer making contributions using other payment methods. In fact, a growing percentage of Americans don't carry cash at all — and those who do rarely carry large amounts.

Checks are another popular option, although this payment method carries certain drawbacks. When you factor in the time and materials required to send, receive and process each paper-based check, the costs quickly add up. Many organizations spend anywhere from $4 to $20 for every check received.

How can you more easily accept donations for your nonprofit organization?

Harness the Power of Online Giving

When you take your giving campaigns online, you have access to a much wider pool of contributors. Donors all over the world can send money 24/7 — even when your organization is closed.

Yet, just like cash and checks, online donations have certain limitations. Most merchant accounts charge 2 to 5 percent for each credit card-based transaction.  Electronic payment services, like PayPal, carry processing fees of 2.2 percent (for charities) plus an additional $0.30 per transaction.

This means that for every dollar that comes in, your organization only collects $0.95 to $0.98.

However, it is possible to receive 100 percent of each donation:

  • Some banks provide "no-hassle giving" that allows donors to send zero-fee contributions to registered nonprofits.
  • Other banks permit donors to use reward points to make penalty-free contributions.
  • By setting up a Facebook account with a "donate" button, it's possible to accept 100 percent of each contribution made via debit card, credit card and PayPal. 

If you are concerned about capturing every penny, it may be worth exploring these “free” payment solutions. However, there's a limit to how much money you can save. 

A better approach is to increase the number and size of contributions since there's no limit to how much donors can give. 

Crowdfunding sites and other online giving aggregators allow you to easily expand your reach and tap into a much larger audience. Many of these sites carry their own fees, which range anywhere from 3 to 8 percent. Though despite these higher costs, crowdfunding can supercharge your campaigns.

Download the Case Study: Integrating Payments to Increase Donations

How BluePay Can Help You Attract More Donations

At BluePay, we offer a number of payment solutions that are specially tailored for the nonprofit world. Our PCI-compliant data security can help you reduce donor fraud. The following tools allow you to streamline your campaigns, reduce operating costs, and connect with more donors:

  • With BluePay's mobile credit card processing, you can accept donations at off-site events. Never turn away a credit card contribution again because someone forgot to bring the bulky POS terminal.
  • We provide payment integration with some of the most popular CRM platforms in the world, allowing you to stay connected with donors throughout the year. You can even tailor all messages and payment options based on each donor’s individual preferences.
  • Recurring billing allows you to automatically keep donations coming in without having to manually send periodic reminders to your members.

These represent just a fraction of the tools we provide to our nonprofit clients. To learn how BluePay can make your next giving campaign more successful, contact us today for a free consultation.


Topics: Nonprofits, Getting Started with Payments

Welcome to the BluePay Blog!

Whether you're a small business, an enterprise corporation, a financial institution, or a software partner, we have created a series of blog posts to help you and your customers, learn more about the complex nature of payments. Take a look to learn how payments can help to simplify your business operation, and may even help to grow your revenue.

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