Cash App is a popular payment processing platform among donors that nonprofits can use to collect cashless donations quickly. In this article, we’ll share more about Cash App, how it is used, and highlight some pros and cons of the platform.
Cash App is growing in popularity among donors, and nonprofits are tapping into its potential to collect cashless donations quickly and conveniently.
In this article, we’ll provide you with more information about Cash App, how to set up and use a Cash App account, and spotlight some benefits and potential drawbacks of the platform. We’ll also answer some frequently asked questions.
Let’s dive in!
Cash App is an online payment processing platform by Block, Inc., formerly Square. With more than 50 million active users, the popular peer-to-peer payment platform is used to send and receive money instantly using a user’s email address, unique $cashtag, or QR code.
$Cashtags are shortened, shareable URLs that act as “usernames” unique to a specific Cash App profile. They may look something like, “cash.app/$yourcashtag.”
Donors can give to causes they are passionate about without inputting their full banking details when using another Cash App user’s $cashtag or email address.
Additionally, Cash App offers Cash App Card, a Visa debit card that connects to your Cash App account so you can make purchases with no additional fees. It also supports the sending and receiving of cryptocurrency and stock donations. The platform places a large focus on Bitcoin, which generates 81% of its total revenue.
Since many donors are already familiar with the platform, nonprofits have started leveraging Cash App to boost convenience for supporters who want to donate to their causes.
When donors give via a QR code or $cashtag, money is withdrawn from their Cash App balance.
If there are insufficient funds in the account, then funds will be deducted from your donor’s linked debit card. The payment will automatically decline if there are no linked payment sources and the Cash App balance doesn’t cover the cost of the transaction.
To start using Cash App, download the app to your mobile device and link it to your nonprofit’s bank account.
You’ll then be able to start receiving donations via a QR code, which you can share on your donation page, website, or marketing materials. Or, choose to share your unique $cashtag on your website and social media platforms to accept donations to your campaign.
Here’s how to create an account on Cash App and boost donations to your cause.
To get started, create a Personal Account on Cash App, which you will need to change to a Business Account once set up (more on this below).
Here are the steps to create a Personal Account:
Once you’ve set up your Personal Account on Cash App, follow the steps below to enable Cash App for business use:
Note: Starting June 1, 2025, Cash App will implement a new processing fee of 2.6% + $0.15 for every donation you receive in your Business Account.
Personal accounts on Cash App are used solely for individual, non-commercial purposes, like splitting the bill with a friend. The app strictly prohibits the use of a personal account to receive payments for goods and services rendered. If you use a Personal Account for this purpose, you risk being suspended.
Since November 2023, the IRS has required services like Cash App for Business to report payments for goods and services on Form 1099-K when transactions equal or exceed $600 in a calendar year. To remain compliant with the IRS by reporting all donations as income to your nonprofit organization, you must use a Business Account on Cash App.
Donorbox’s multi-step donation forms make it easy for you to collect donations via Cash App Pay and other payment methods, including credit/debit cards, ACH, and digital wallets like Apple Pay and Google Pay.
This means you can provide your supporters with multiple ways to give to your cause – removing any boundaries for them to make a gift.
Create a brand-aligned donation form and host it for free on Donorbox or embed it on your website. Add compelling visuals and text to tell your fundraising story effectively and include donation designations that empower donors to give to specific areas of need.
Plus, add up to four giving intervals to your form – choose from one-time, daily, weekly, biweekly, monthly, quarterly, and annual. Indicate your preferred interval with a heart to let donors know which gift will have the greatest impact. By including repeat giving intervals like “monthly,” you’ll be able to secure more recurring donations and boost financial stability and growth for your organization.
Donorbox makes it easy for you to fundraise without worrying about the safety of sensitive organizational or donor data. All Donorbox donation forms follow industry-leading security standards, ensuring your and your donors’ information remains secure.
See how this organization is using a Donorbox donation form to help raise funds for dogs in need.
It’s important to understand the benefits and potential drawbacks of using Cash App! Let’s highlight some of the pros and cons of Cash App for nonprofits.
Once you have your Business Account on Cash App, your nonprofit can set up instant transfers to your linked bank account, which takes between 1-3 business days to reflect.
This ensures quick access to much-needed funds in your bank account and streamlines your financial management.
Cash App is not only easy to set up, but also simple to use. It features a fairly basic user interface that makes it easy for almost anyone to navigate – even if you aren’t particularly tech-savvy!
Nonprofits and faith-based organizations can accept donations easily without a complex setup. For example, churches can quickly accept tithes when church members are most moved to give back.
As a nonprofit, you need to issue compliant donation receipts to your supporters.
Unfortunately, you must manually track donations and issue receipts to donors since Cash App doesn’t automate this process. This can be tedious and add to your workload.
While Cash App has fraud prevention tools in place, it doesn’t offer nonprofit-specific fraud prevention tools that protect donors who may be targeted by fraudulent transactions or scams.
Since donors only need an email address, QR code, or $cashtag to send money, they are often targeted by scammers using social engineering tactics. Money is transferred almost instantly via the platform, so Cash App cannot guarantee a refund for transactions. This poses a security risk for your donors and may make it difficult to maintain donor trust.
Cash App donations can be collected quickly using smartphones. However, your donors appreciate having more ways to give – which means more donations to fuel your mission!
Instead, consider a donation platform that offers multiple payment methods so every donor feels empowered to support you.
Recurring donors give 42% more annually when compared to one-time donors! Recurring donations are the bread and butter of almost any nonprofit organization.
Cash App enables users to set up recurring payments as scheduled transactions on their accounts. However, it isn’t designed specifically for nonprofits that want to promote recurring giving and convert one-time donors into monthly givers.
This is a notable consideration to be mindful of when assessing your fundraising strategy.
Having access to nonprofit-specific features like donor management and in-person fundraising tools like donation kiosks and text-to-give is essential to optimizing your fundraising success.
Unfortunately, Cash App does not offer in-person fundraising solutions, donor management tools to build stronger donor relationships, or mainstay fundraising tools like crowdfunding and peer-to-peer fundraising. This can make it difficult for you to build lasting connections and increase your donor retention rate in the long run.
You may experience some issues with support on Cash App. Capterra rates their customer service 3.5 out of 5 stars. While the app has some help articles available, you may find them a bit limited.
However, Cash App does offer daily support via its direct line (1 (800) 969-1940). It also provides in-app chat support.
Donorbox’s AI-powered fundraising and donor management platform has helped more than 100,000 nonprofits raise more than $3 billion – and counting! Let’s compare Donorbox vs. Cash App for nonprofits.
| Feature | Donorbox | Cash App |
|---|---|---|
| Donation forms | x | |
| Recurring donations | x | |
| Fraud prevention and security | x | x |
| Multiple payment methods | x | |
| Tax-compliant receipts | x | |
| Donor management tools | x | |
| In-person fundraising tools | x | |
| Crowdfunding and peer-to-peer fundraising | x | |
| QR codes for easy fundraising | x | x |
| Pricing | No sign up costs. 2.95% platform fee for our Standard plan. 2.2% + 30¢ payment processing fee. | 2.6% + .15¢ processing fee per card transaction on business accounts. 0.5% - 1.75% fee for instant deposits. |
Cash App is a convenient way for nonprofits to collect donations using a popular peer-to-peer payment platform. However, it may not meet your fundraising needs if you want to boost donations, streamline operational efficiency, and nurture relationships with donors.
Donorbox is designed to scale your online and in-person fundraising efforts with enhanced features, growing with you to help you achieve your mission and maximize your impact. From peer-to-peer and crowdfunding to event ticketing, donation kiosks, and brand-aligned donation forms, we help you raise funds easily and effectively.
We’ve compiled answers to some frequently asked questions you may have about Cash App for nonprofits.
Yes. Cash App does not have special fees for nonprofits or faith-based organizations, like churches. This means you will be charged a 2.6% + $0.15 processing fee for every card transaction made on a Business Account from June 1, 2025 (3% for transactions made on Personal Accounts). There is also a 0.5%-1.75% charge for instant transfers.
It’s important to note that, while churches aren’t required to file for official 501(c)(3) status in the U.S, you will need to set up a Business Account to remain tax-compliant with the IRS and report all charitable donations as income. Cash App prohibits the use of Personal Accounts for goods and services rendered, and you may risk having your account suspended if you don’t follow these guidelines.
Cash App allows donors to verify payments by enabling a Security Lock setting, which requires a passcode, Face ID, or Touch ID to complete a purchase. They can also opt into transaction tracking via email or SMS. Cash App is PCI-compliant and uses encryption and fraud detection technology to keep sensitive data and money secure.
However, donors are prone to scams and social engineering tactics on Cash App. This means that if a donor falls victim to a scam and tries to get a refund for their transaction, it isn’t guaranteed that they will receive their money back. This may cause supporters to hesitate when contributing to your cause via the platform, resulting in fewer donations and a lack of donor trust.
Remember to weigh your options and compare Cash App’s fraud prevention features with those of a powerful fundraising platform that prioritizes security specifically for nonprofits and donors.
Yes, you can. You would first need to create a Personal Account on Cash App before switching to a Cash App for Business account. Then, you’d need to set up a Business Account to ensure compliance with the IRS by reporting all donations as income to your organization.
Cash App prohibits the use of Personal Accounts for goods or services rendered, and you will need to report donations received as income to your Business Account if it exceeds $600 in a calendar year.
Providing your donors with multiple donation options and cashless alternatives in an ever-evolving digital landscape brings in more funds for your mission.
Cash App is handy for accepting cashless donations, but you may want to consider a fundraising platform that allows your supporters to give to your cause using credit/debit cards, other digital wallets, and more.
Donorbox’s fundraising and donor management platform streamlines the giving process for you and your supporters. Our online and in-person fundraising features and tools provide you with numerous ways to boost donations and donor retention. We also follow industry-leading security standards, empowering you to fundraise with ease.
Sign up for free today and start fundraising in minutes!
Visit our Nonprofit Blog and YouTube channel for more helpful fundraising tips and ideas. And sign up for our newsletter to receive exclusive fundraising insights and tips sent straight to your inbox every month.
Subscribe to our e-newsletter to receive the latest blogs, news, and more in your inbox.
Jamy-Lee Holt