Online Payment solutions for Non-profits
Running any non-profits takes huge amount of money. Educational charities and those non-profits that qualifies for IRS tax deductions usually have a leg up in the sense that most payment processors will waive off any interchange fess. These fees are those 2.9% standard fees that actual payment processors such as Visa, Mastercard, Discover, American Express and so on will charge to your payment processor such as Venmo, Paypal, Stripe, webpay, Google checkout/wallet and any other beta products that they have recently, their competitors from Microsoft or Apple pay, Square Cash and really a lot of them out there. On top of it, there is payment sites from Amazon and the merchants themselves such as Visa Checkout, Mastercard, American Express and so on. Many waive fees for non profits. It is really up to the non-profits to set this up for ease of the contributors as well as balancing this with the need to maximize donations and minimizing these pesky fees.
Some of the sites out there are Network for good, Neocm, popmoney charities (https://www.popmoney.com/charity.html) which all charge in the 3% + range. There are also platforms such as https://www.justgive.org which are more in the 5% range. Most nonprofits for waiver will require a 501(c)(3) status and not the 501(c)(4) status. One way is re-organize your nonprofit along these goals and set up specific funds for specific purposes. That would also be a bit time consuming. However, if you want to see better tools than Paypal or the regular ones which charge the 2.9% fee, then read on.
- Giving Tools: https://www.givingtools.com/online-giving/ but they do have a monthly fee of $14.95 .. not much for an organization raising large fees. The online credit card rate is 1.99% + 10cents more.
- Black Baud: https://www.blackbaud.com/bbms/bbms-tier1.aspx .. the pricing seems to be ~ 2.6% + 25 cents .. which gets it to the 2.9% range.
- Dharma merchant services: https://www.dharmamerchantservices.com/nonprofit-solutions/ seems to be competitive rates.
- There is a link to nerdwallet below which has reduced merchant charges of 1.35% for Visa ( charity ). Given that most credit cards are Visa or Mastercard, these could be an additional option at the risk of your donors getting confused about where to pay.
- National banks such as Bank of America and Citi and Chase offer payment gateway services. Best way is to contact them if you are a smaller nonprofit.
- FattMerchant: https://www.fattmerchant.com/cpoflatfreeprocessing/ is very similar to Dharma and has competitive rates
- https://paymentprocessing.hostmerchantservices.com/ .. [
Chat with the above yielded this:
Charities Charities Visa Charity Debit 0.05% + 21¢ MC Charity Debit 0.05% + 21¢ Visa Charity Credit 1.35% + 5¢ MC Charity Debit (non-regulated) 1.450 % + 15¢ MC Charity Credit 2.000 % + 10¢
]. That is very competitive and way beyond many of the other services.
- Similar to above, there are more: https://www.samsclubms.com/content/dam/samsclubms/creditcardprocessing/index.html
Given so many options, there is no point in reinventing the wheel and write a program that calls Visa, Mastercard, Amex, Discover and makes the transaction. And then takes on the additional risks and liability related to security of credit cards and integrity of the transaction. It is just a distraction for the users from their main goal of raising more money for the organization and other core activities.
Online fundraising garners millions in charitable giving for the nonprofit industry every year, but there are so many…nonprofithub.org
Online and mobile payments have made donating to charity easier. But this convenience often comes with a catch. A 2% to…www.nerdwallet.com
There are other fees such as set up fees, monthly fees, early termination fees and so on. A good read for that is this pdf below:
Best merchants for Non profits here:
Would you like to accept credit cards at your U.S. or Canadian nonprofit organization? This list of best merchant…www.cardpaymentoptions.com