There’s no doubt that PayPal is a popular option for processing all kinds of payments. Many nonprofits rely on PayPal to collect donations. However, while it might seem like a convenient option, PayPal comes with some limitations that can hamper your fundraising efforts.
As a result, PayPal might not be the best option for your nonprofit payment processing. In this post, we’ll explore 6 alternatives to PayPal for nonprofits.
Read on to discover dedicated nonprofit fundraising platforms that can help you collect more donations and better manage your donor interactions.
Why do Nonprofits look For Alternatives to PayPal?
It’s important to be aware of the pros and cons of any donation processing software before signing up for their services. PayPal has a number of drawbacks when it comes to fundraising for nonprofit organizations.
Disadvantages of using PayPal for nonprofit fundraising
- PayPal was not created with nonprofit fundraising in mind, therefore it lacks some of the features that many fundraisers would consider industry standard.
- With PayPal, recurring donations are limited to monthly or nothing. There are no options for weekly, quarterly, or annually recurring gifts. This is a big drawback for religious organizations and churches that want to collect weekly tithing donations, as well as membership organizations that wish to automatically renew yearly contributions.
- Donors are not able to log in and adjust their recurring gifts, update their information, or download their tax receipts.
- PayPal does not offer conversion tracking or donor information collection.
- PayPal’s donation form has very limited customization and does not allow you to express your organization’s preferred branding elements.
- With PayPal, there is no option to ask your supporters to cover the donation processing fee.
- PayPal does not offer donors the opportunity to make an anonymous gift, or to direct their gift toward a specific project.
- It does not offer crowdfunding features such as a landing page, goal meter, donor wall, and updates to supporters.
- It doesn’t have text-to-give functionality.
- A verification process is required to confirm your organization is a charity in order to access PayPal’s charity features.
- Apple Pay is not accepted as a payment method with PayPal.
As you can see, while PayPal is well-known, it lacks many of the features that allow fundraising professionals to meet donors’ needs and better serve their organizations. Let’s explore some other options and figure out which one might be best for your nonprofit.
6 Best PayPal Alternatives for Nonprofits
Best All-in-One PayPal Alternative for Nonprofits
Donorbox is a seamless all-in-one nonprofit fundraising solution trusted by more than 35,000 organizations from 40 countries. In just 15 minutes, you’ll be all set to start accepting donations!
Donorbox is user-friendly and can easily integrate with your existing website with no coding knowledge. It also offers capabilities for crowdfunding, text-to-give, flexible recurring giving, donor management, and more. Let’s have a quick look at some of the most interesting aspects of this powerful alternative to PayPal!
1.1 Secure payment processing
Donorbox uses Stripe as its main payment processor, which is a trusted, PCI Compliant software. It also utilizes anti-fraud tools and SSL/TLS encryption technology to protect you and your donors. It tokenizes all financial data and does not store your supporters’ credit card or bank account data.
1.2 Donation forms
With effective features like easy customization, multi-currency support, donation tier, donation designation, tribute donations, employer gift matching, etc., Donorbox can help you turn your simple donation forms into an all-in-one solution for successful fundraising.
1.3 Recurring donations
Donorbox allows your supporters to set up and manage their own recurring giving plan. This assures your donors that they’ll have a sense of control, flexibility, and security with regard to their giving. They can also upgrade, downgrade, or change the frequency of their giving as they wish.
1.4 Text-to-give campaigns
Text-to-give fundraising lets your donors give easily to your cause, just by sending a text.
With Donorbox, you can set up a text donation campaign in just 60 seconds – and your supporters can give with any iPhone, Android, or Windows phone! Learn more about Donorbox’s text-to-give features.
1.5 Automated tax receipts
Your donors will automatically receive an emailed tax receipt from Donorbox for each donation. This saves your team a lot of time by not having to prepare and send tax letters for each gift. Donorbox’s receipt template is completely customizable, so you can add your organization’s information or a special message with utmost ease.
1.6 Donor management
Donorbox allows your organization to easily collect and manage donor information, and sort the records based on donation amount, frequency, date range, location, and more. You’ll be notified every time a donor upgrades or cancels their recurring plan, makes a first-time gift, or completes their giving anniversary.
1.7 Marketing, analytics, and CRM integrations
Donorbox can integrate with marketing, CRM, and productivity tools like Mailchimp, Salesforce, and Zapier. It also works seamlessly with web design platforms including WordPress, Squarespace, Wix, Weebly, Joomla, and others. Click here to read more about Donorbox’s integrations.
Pricing: Donorbox requires no set-up fees, no monthly fees, and no contract. It charges a minimal platform fee of 1.5% plus payment processor fees. But guess what – you can save money with Donorbox by empowering donors to cover the processing fee!
Best PayPal Alternative for Donor Management
Bloomerang is a donor management system that also offers payment processing through Stripe and Moolah. With Bloomerang, you can keep track of donor information, collect donations through online forms, design emails, and more. Bloomerang also integrates with a variety of marketing and administrative tools and apps.
While Bloomerang offers some of the same functionality as a tool like Donorbox, its pricing model is different. One drawback is that as the size of your nonprofit’s records grows, your pricing with Bloomerang will increase, too.
Pricing: Bloomerang ranges from $99-$499 per month, depending on how many records or contacts you track in their system. Additional payment processing fees also apply. Special pricing is available for very small nonprofits.
Best PayPal Alternative for Payment Processing
This payment processor is managed by VISA. Authorize.net allows you to accept global payments by credit card, contactless payment, and eCheck. With advanced fraud detection and the power of VISA behind it, this is certainly a trustworthy payment processor.
However, any system that isn’t designed with nonprofits and donors in mind is going to lack some of the functionality that development professionals need. In this case, Authorize.net doesn’t offer options for crowdfunding or text-to-give campaigns. Plus, language like “billing subscription” rather than “monthly gift” can feel generic, cold, and off-putting to donors.
Pricing: Authorize.net charges a monthly gateway fee of $25, plus transaction fees that vary depending on the plan you choose.
Cybersource is also powered by VISA. This PayPal donation alternative offers a focus on global compliance and security. As a result, this is a flexible and convenient option for international organizations that have a global donor audience.
Cybersource’s worldwide payment acceptance network allows you to accept donations in up to 50 currencies from supporters in more than 190 countries and territories. You can also accept money from digital wallets and alternative payment methods.
Stripe is a well-known global payment processor that partners with many other software systems (including Donorbox!) It’s a reputable processor, and its donation forms can be embedded directly into your nonprofit’s website.
However, Stripe lacks some of the features that make other systems ideal for nonprofit fundraising. For example, donors aren’t able to log in and manage recurring gifts. And, its customization options are more geared toward people with coding knowledge.
While Stripe does offer a “recurring payment” option, it’s set up under their Billing tool, for businesses that are billing customers with subscriptions or monthly invoices. Its website also shows that its services are focused on traditional corporations selling products and services, rather than nonprofits working to raise funds and manage donor relationships.
Pricing: Stripe’s standard pricing is a 2.9% credit card processing fee plus 30 cents per successful card charge – but if you apply and qualify, it offers a reduced rate for nonprofits. Other fees apply for ACH bank transfers, debit payments, and alternative payment methods.
6. iATS Payments
Unlike some of the other options mentioned above, iATS was specifically created with nonprofits in mind. Its mobile app allows you to securely accept payments on the go at fundraisers and events. It also allows your donors to opt to cover the processing fee for their transactions.
iATS’ online donation forms are uncomplicated and easy to set up. However, iATS notes that these forms are intended to be a “basic and affordable” option. As a result, you won’t be able to create a donation form with a ton of customization and special functionality without coding knowledge or a third-party partner.
Pricing: iATS does not provide pricing information on its website. Contact their sales department for details.
Over to You
When choosing a payment processor, it’s important to consider a variety of factors. Think about which system will allow your nonprofit to best connect with your donors in the years and decades to come.
Also, consider whether your payment processor offers enough customization and features you need. For example, the ability to create a beautiful, trust-inspiring donation page with flexible recurring gift options may perform better than a generic page that only allows for monthly giving.
With a streamlined, affordable, and user-friendly solution like Donorbox, you can put your organization’s best foot forward and focus your time and energy on the work that truly matters.
Know about some useful nonprofit management tips, trends, and resources on our nonprofit blog.