Nowadays, accepting donations online is crucial for charities and nonprofit organizations. It not only broadens your reach but also simplifies the process for donors to support your cause. With the right online donation methods, you can significantly boost your fundraising efforts and ensure a steady stream of support.
This blog will highlight the top 5 ways to accept donations online, highlighting their importance and how they can transform your fundraising strategy. Each method is selected for its reliability, ease of use, and ability to connect with supporters, making it easier for your organization to achieve its goals.
1. Paypal
First on the list of ways to accept donations online is PayPal due to its widespread recognition and trust among users. It offers a secure, convenient way for donors to contribute, with the option to use credit, debit cards, or PayPal accounts.
The platform is especially appealing because it's available in over 200 countries and regions, providing global reach for your fundraising efforts.
Setting Up a PayPal Donation Button
- Create a PayPal Business Account
Sign up and link your bank account. If you're a nonprofit, register and apply for confirmed charity status to access lower fees.
- Share Your Donation Link
Use your custom PayPal.Me link or add a PayPal donate button to your website. You can also include PayPal as a payment option at checkout.
- Collect Donations
After transaction fees are deducted, the funds are yours. Donors can make one-time or recurring donations and specify donations for particular programs.
Pricing for Accepting Donations
- Standard Fees: Typically, PayPal charges 2.89% + $0.49 per transaction.
- Nonprofit Rate: Eligible 501(c)(3) nonprofits pay reduced rates of 1.99% + $0.49 per transaction.
While PayPal offers a convenient and trusted platform for transactions, it's important to consider its limitations. It may lack comprehensive fundraising tools and flexibility in payment methods compared to specialized fundraising platforms.
However, for donation collection, PayPal's ease of use and global reach make it an attractive option
2. Stripe
Stripe is another leading online payment processor that is known for its security, reliability, and global reach.
It's an excellent choice for accepting donations online due to its comprehensive features that ensure both the security of transactions and a wide range of payment options.
Stripe is available in 195 countries, supporting 135+ currencies, making it a versatile platform for global donations​​.
Setting Up Donations Online Through Stripe
- Create a Stripe Account
Sign up for a Stripe account by providing your organization's details.
- Set Up Payment Links
Use Stripe's Dashboard to create Payment Links for one-time or recurring donations. You can specify fixed amounts or let donors choose their contribution​​.
- Customize Your Payment Page
Personalize the payment page to match your branding, including logos and colors, and select the payment methods you want to accept.
- Share Your Donation Link
Send your Payment Link through email, social media, or embed it directly on your website to start receiving donations.
Pricing When Accepting Donations Online
- Standard Transactions: 2.2% + $0.30 per transaction for most cards and 3.5% for American Express donations​​.
- ACH Transactions: 0.8% with a cap of $5 per transaction, offering a low-cost option for larger donations​​.
- Nonprofit Discounts: Stripe offers discounted rates for nonprofits. You'll need to apply by providing your organization’s details and confirming that most transactions will be tax-deductible donations​​.
Stripe is known for its high level of security, being PCI Service Provider Level 1 compliant, and using encryption to protect all transactions​​.
Donors can use various payment methods, including credit/debit cards, ACH transfers, Apple Pay, and Google Pay, providing flexibility and convenience​​.
3. BetterWorld
At number three, we have the complete package. BetterWorld is an online platform designed to support nonprofits with their fundraising efforts.
It offers a wide range of tools for online donations, auctions, and event ticketing, making it a versatile choice for organizations looking to diversify their fundraising strategies.
BetterWorld is 100% free for nonprofits, with no platform, setup, or subscription fees.
BetterWorld goes above and beyond PCI standards to secure its pages through encryption, safeguarding against unauthorized access, and ensuring that all donor information remains private.
Setting Up Donations on BetterWorld
- Register Your Nonprofit
Start by creating an account on BetterWorld.org. Provide essential information about your organization to get started.
- Enter Organization Details
Fill in your nonprofit's mission, objectives, and banking information to set up the receipt of donations.
- Launch a Fundraising Campaign
Choose from BetterWorld's fundraising options to start your donation drive. Your fundraiser could range from direct donations to auctions or ticketed events.
- Customize Your Campaign Page
Detail your fundraising goals and campaign specifics. Personalize your page with your branding to resonate with your audience.
- Promote Your Campaign
Use BetterWorld's promotional tools to spread the word about your campaign through emails, social media, and other channels.
Pricing and Fees
BetterWorld is particularly appealing for its cost structure:
- Platform Fee: $0 + 0%. BetterWorld does not charge any platform fees, making it a cost-effective solution for nonprofits.
- Credit Card Processing: 2.9% + $0.30 per transaction.
This is a standard rate for online transactions, comparable to other payment processors. Notably, most donors opt to cover these fees, allowing nonprofits to retain the full donation amount.
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4. Facebook Fundraisers
Facebook Fundraisers have the power of the world's largest social network, making it a prime platform for nonprofits to raise money.
Since its introduction, Facebook fundraising has generated over $5 billion in donations, predominantly in small amounts under $25.
This highlights the platform's ability to mobilize a wide audience to support causes they care about. Facebook's integration with PayPal Giving Fund in select countries further simplifies the donation process.
Setting Up Facebook Fundraisers
- Enroll in PayPal Giving Fund
To start donation payouts, ensure your nonprofit is enrolled in PayPal Giving Fund. It is crucial for receiving donations more quickly and efficiently​​.
- Create Your Fundraiser
Head to the "Fundraisers" section in your Facebook menu, select "Raise Money," and choose "Nonprofit." Search for and select your nonprofit organization, then personalize your fundraiser with a cover photo, message, fundraising goal, and end date​​.
- Promote Your Fundraiser
Actively promote your Facebook fundraiser through your nonprofit's page and encourage your community to share the fundraiser. Facebook offers various tools, including donation buttons and the ability to host fundraisers through Facebook and Instagram Live to maximize your fundraising efforts​​​​.
Pricing
Facebook Fundraisers boast no platform fees, allowing nonprofits to receive the entirety of the donation amount. However, with the recent changes, donors are given the option to cover processing fees, ensuring that nonprofits can potentially receive 100% of the funds raised.
The speed of receiving these funds varies based on the chosen payout channel, with PayPal Giving Fund offering payouts every 15-45 days​
5. GoFundMe
GoFundMe stands as a premier choice for accepting donations online for its ease of use, wide reach, and flexibility in fundraising for a variety of causes.
It's particularly well-suited for individuals, groups, or organizations looking to raise money for everything from medical expenses and educational costs to community projects and personal challenges.
GoFundMe is available in 19 countries, including major locations like the United States, United Kingdom, Canada, Australia, and several European countries such as Germany, France, and Italy. However, it's not supported in certain US territories like American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands​​.
Setting Up a GoFundMe Campaign
- Start Your Fundraiser
Visit GoFundMe's website and click on the 'Start a GoFundMe' button. This initial step involves answering a few questions to set the foundation of your fundraiser.
- Tell Your Story
You'll need to explain the purpose of your fundraising. This step includes writing a detailed story and possibly recording a video to make your cause relatable and compelling.
- Set Your Goal
Decide on the amount you need to raise. Remember, you can adjust this goal later if necessary.
- Share Your Fundraiser
Use email, social media, and direct contacts to spread the word about your fundraiser. The more you share, the more donations you're likely to receive.
- Manage Donations
You can track your progress, thank donors, and withdraw funds directly to your bank account within 2-5 business days after setting up withdrawals​​.
Pricing and Fees
There are no fees to start or manage a fundraiser. However, there is a small transaction fee for each donation, specifically 2.9% + $0.30, which goes towards covering the payment processing. The vast majority of the funds raised go directly towards your cause​​.
Choosing the Right Online Donation Method for Your Cause
Implementing online donation methods isn't just about keeping up with technology. It's about opening up new opportunities for your cause. Now's the time to take action. Reflect on what your organization really needs and start exploring your options.
Remember, the goal is to make donating as easy and accessible as possible for your supporters.
The journey to finding the best online donation platform might seem daunting at first, but it's definitely worth it. So go ahead, welcome the possibilities that online donations offer, and watch your organization grow and succeed.
