Key Factors in Choosing a Payment Gateway for Your Nonprofit
Nonprofits must rely heavily on online donations to support their missions and sustain their operations. But gone are the days where checks in the mail are the preferred non-cash payment method. The ability to accept payments quickly and securely is crucial, but with a variety of payment gateway options available, choosing the right one can feel overwhelming. A well-chosen payment gateway not only ensures smooth transactions but can also help build trust with donors, streamline your nonprofit’s financial processes, and even boost your overall fundraising efforts. In this article, we’ll explore what a payment gateway is, why it matters for nonprofits, and the key factors to consider when selecting the best option for your organization.
Statistics are staggering, with nearly half of adult Gen Zers having never written a check! Giving must be fast, easy, and immediate. Skills for Rhode Island’s Future’s Eduardo Naya, VP of Marketing and Communications understands this changing landscape. “With the right payment app, supporting causes is just a tap away—secure, fast, and always accessible when you’re ready to give.” Choosing a payment gateway was almost as important a choice as the user experience when redesigning the non-profits employment website. Naya chose his payment gateway based on 4 factors: the advice of his web devs, ease of use, tool comparisons and economics of cost.
What payments gateways are available?
Here are some of the best payment gateways for nonprofits that offer competitive fees, essential features, and support for tax-exempt organizations:
PayPal
- Why it’s good for nonprofits: PayPal offers discounted transaction fees for verified 501(c)(3) nonprofits (2.2% + $0.30 per transaction) and integrates easily with most donation platforms.
- Key features: Recurring donations, donor tracking, and customizable donation buttons. PayPal also allows for international transactions, making it great for global outreach.
Stripe
- Why it’s good for nonprofits: Stripe offers nonprofits a discount (2.2% + $0.30 per transaction for U.S.-based nonprofits). It provides robust developer tools and supports integrations with popular fundraising platforms.
- Key features: Customizable checkout, support for over 135 currencies, mobile payments, and detailed financial reports.
Authorize.Net
- Why it’s good for nonprofits: While this one might be a little more expensive that the previous two, Authorize.Net offers discounted rates for nonprofits, and they have a well-established reputation for security and reliability.
- Key features: Recurring donation processing, fraud prevention tools, and easy integration with websites. Authorize.Net also supports e-checks.
Donorbox:
- Why it’s good for nonprofits: Although growing in popularity, Donorbox is still less known compared to larger gateways like PayPal. It’s tailored for nonprofits and allows for easy recurring donations, customizable donation forms, and a variety of payment options.
- Key features: Low Fees, Easy Setup, Customizable, Recurring Donations, Tax Receipts, and Multi-Currency Support.
Your Bank:
- Why it’s good for nonprofits: With no intermediaries, your own financial institution may be the best bet as your payment gateway. Using a trusted financial institution can provide peace of mind. You’re working with a known entity that offers reliable services, reducing concerns over payment security or processing issues.
- Key features: The key features will vary from bank to bank, but may include lower transaction fees, integrated financial services, better support, customized solutions, faster transfers, and local relationships.
Read the Fine Print
During one of our recent client appreciation calls, we learned of a heartbreaking scenario. The client signed up for online giving through their bank. They were locked in to whatever payment processor their bank told them to use. Because they were already banking there, they thought “This is great! We trust out bank. This will be perfect.”
However, after a year or more of “collecting” donations on their website, they realized that they needed to log into the payment processing gateway to accept each and every donation. They didn’t do this. After 90 days, each donation was returned to its giver. The organization who thought they were collecting donations the whole time missed out of a huge chunk of change because they did not read the fine print.
Marrying your Payment Gateway with your Website
Typically your web developer will just need a link to your payment gateway to link your donate button to the gateway. However, if you want to get fancy, create forms, or track donations for specific items, it may require special connection between your financial institution and the website.
WordPress has many plugins available to tie forms to payment gateways. This makes it pretty easy to accept donations right from your website while not storing credit card information on the actual site (which is a PCI compliance no-no unless your server is secure).
Note: With PCI 4.0 changes, you may need scans where you did not before! It’s wise to talk to your payment gateway provider or IT professional if you have questions.
Tying your chosen payment gateway to your website should be a collaborative process with your web developer. Whatever payment gateway you choose, it’s important to discuss your immediate and future goals with your web developer to ensure they set up the right solution for your site. Whether you’re using a simple donate button or implementing more advanced features, ensure your site is optimized for security, PCI compliance, and donor trust. By carefully evaluating your payment options and integrating them effectively into your website, you can create a seamless donation experience that fosters long-term support for your mission.
The gateway to smarter giving
Choosing the right payment gateway for your nonprofit is a critical decision that can impact your fundraising efforts, donor experience, and overall operational efficiency. By selecting a gateway that aligns with your organization’s needs—whether it’s ease of use, low transaction fees, or advanced features like recurring donations and donor tracking—you set the stage for streamlined donations and greater engagement with your supporters.
