PayPal Alternatives for Nonprofits
January 19, 2021
When it comes to selecting an online payment service to funds and payments, nonprofits are in kind of an awkward position. Receiving donations is the lifeblood of every nonprofit, but online payment options, like PayPal, often come with a host of additional features and costs that might not fit the specific needs of your institution.
PayPal has become a household name that offers convenience and security to businesses all around the world. For nonprofits who need to hold onto every dollar they earn, however, there might be better options available to them other than PayPal.
Below we’ll go into all the pros and cons of PayPal, what to look for in a donation platform, and some of our favorite alternative payment options that you can start utilizing today.
PayPal for nonprofits
If you’re looking into payment options for your nonprofit, you’ve surely considered PayPal’s services by now. PayPal’s ubiquity is well-deserved as one of the most convenient, customizable, and trusted platforms out there.
As a service specifically catered to the needs of nonprofits, however, PayPal might fall short for some organizations. Below, we’ll get into the pros and cons of PayPal for nonprofits.
Some of PayPal’s most notable benefits include:
- Easy set up process
- A myriad of different payment and currency options
- Easy-to-add donation options at checkout pages
- Popularity, familiarity, and brand recognition
- Security and safety
- PayPal’s ability to stare and manage customer data so you don’t have to
Some of PayPal’s cons for nonprofits include:
- High Cost – PayPal typically charges two fees for every transaction, a flat fee of $0.30 per transaction as a well as value fee that runs anywhere from 2-3%.
- Lack of seamless integrations – As a third-party, it can be difficult to integrate PayPal into your current website, requiring your customers to redirect to a separate PayPal page which could make them hesitant about completing their donation or payment.
- Global accessibility – Not everyone can use PayPal. If you plan on receiving donations from individuals outside of PayPal’s domain, you might need to start looking for other options.
- Limited donor management – Because donations and fundraisers are a primary source of income for many nonprofits, you want a service that offers advanced donor management capabilities.
A lot of nonprofits don’t necessarily need all the additional features, perks, and customization capabilities that PayPal offers. And because nonprofits rely on donations to survive, taking a significant percentage from each payment may not make the most sense for every institution.
If you know that PayPal isn’t the best option for you but don’t know where to look, we’ve got you covered. Below are some of our favorite alternatives for nonprofits.
PayPal alternatives for nonprofits
When considering PayPal alternatives, there are a few things you should be looking out for regardless of the service or software.Ideally, the platform will provide:
- Lower transaction costs
- Donor management capabilities
- Ability to make payments with a number of currencies and favorable exchange rates
- Embedding within your website
- Easy set up and implementation
- Multiple payment methods, including CC, debit card, and ACH, among others
- PCI compliance
- A service that doesn’t overcharge for payment options or methods that aren’t relevant to your needs
- A priority on donations and fundraisers if that’s your primary need
Now that we’ve gone over some of the main things to look out for in a payment option, let’s get into our alternative favorites.
- DonorsChoose – DonorsChoose is the choice for schools, colleges, and universities. DonorsChoose focuses on school supply fundraisers and takes care of all the purchasing and shipping fees, including cost of shipping, sales tax, and fulfillment and labor fees.
- Donorbox – Donorbox is all about ease and convenience. You can have a robust recurring donation system within 15 minutes. Enjoy seamless integrations, recurring donations, and a number of different payment features with Donorbox’s user-friendly platform.
- Donately – Donately offers a sleek donating service for organizations of any size. With easy integrations, intuitive form giving pages, and a pricing model that rewards institutions for reaching their fundraising goals, Donately is a top choice for any nonprofit.
- ACME Ticketing – ACME is a comprehensive ticketing solution with an integrated online payment system designed to meet the unique needs of public-facing nonprofits and cultural institutions. ACME’s membership management, donation management, and ticketing platform integrates with Salesforce for safe and easy monetary transactions at every step of the donor and visitor journey.
ACME Ticketing has it all
ACME is an all-in-one ticketing solution designed to meet the specific donor and payment needs of nonprofits and cultural institutions. ACME’s cloud-based membership and donation software makes it easier to receive donations and to implement fundraising and donor strategies for the future.
Request your free demo here to see if ACME is right for you.