How Should Nonprofits Collect Donations Online?
I constantly hear nonprofits say “we use PayPal to collect donations online.”
I want to respond: “And, how many donations do you collect?”
Certainly not many.
Stripe, PayPal, and other online money collection options are built to do just that - collect money. These platforms are not built to be user-friendly OR entice people to donate.
And that's one of your nonprofit's goals, right? To entice people to donate.
There are plenty of online fundraising platforms for your nonprofit to collect donations:
Your nonprofit may have chosen the cheapest option at default. But the cheapest option isn’t always the best option.
For example, the budget-friendly donor management system we recommend - Little Green Light ($39+/mo) - doesn't provide built-in options for taking donations through your website or Facebook. Psst: if your nonprofit still uses an excel spreadsheet to track donations, please click here to upgrade.
At the same time, your nonprofit agency might want to use a donor management system like Donor Perfect ($89+/mo), which supports donation collection with a nominal fee (between 1.9%-4.9%).
So, if you use a donor management system, check and see what they recommend.
If your nonprofit uses a donor management system that doesn't provide built in options for taking donations (like Little Green Light), then keep reading for Grit HQ's secret solution to collecting donations online.
How should small nonprofits collect donations online?
If you are a nonprofit with a budget less than $1,000,000 and you receive less than $1,000 in donations per month, there is a secret solution.
We strongly, STRONGLY, STRONGLY recommend DonorBox + Stripe. DonorBox starts free (up to $89/mo.) and Stripe has a per transaction fee of 2.9% + $0.30.
- is simple to set up,
- allows you to brand your donation tab easily,
- provides a code you can embed into your website, and
- allows you to set specific donation rates and opt-in for monthly giving.
Although Grit HQ still recommends GiveGab for targeted campaigns, DonorBox + Stripe are the perfect solutions to receive ongoing donations.
Cheaper isn't always better
That unbranded PayPal donation button of yours sitting on your nonprofit's website isn't cutting it.
There's a difference between doing stuff and doing stuff the right way.
Take 15 minutes out of your day to set up DonorBox and create a fast, branded experience for your donors.
Want to get access to Grit HQ's library full of free resources for nonprofit and small business owners?
Leave your email below to get the password and subscribe to Grit HQ's newsletter.