When it comes to accepting donations on your nonprofit website, there are a ton of options out there. Some of the biggest names include PayPal, Authorize.net and Stripe. We realize the details surrounding payment processors can be hazy at best, and you probably have better things to do than research pros and cons. To make your decision easier, we’ll come out and tell you that we recommend Stripe for nonprofits that we work with.
We’re not getting any compensation from Stripe to say this.Our recommendation comes from working with various payment processors through our nonprofit clients and experiencing the differences first hand.
We believe that Stripe is currently the best payment processor for nonprofits, and we based our decision on the following criteria:
As you’re weighing your options, price will likely take a front seat. Stripe for nonprofits charges a fee for every transaction, but there aren’t any additional fees that you need to worry about. Many payment processors charge a fee for every transaction, but some also add fees for things like setup, monthly usage and account cancellation.
Rates and Nonprofit Discount
These are taken out of every online transaction that goes through the payment processor. Check out Stripe’s standard pricing:
- 2.9% + 30¢ for every successful transaction
Although they’re not currently advertising these rates on their website, nonprofits in the US with a 501(c)3 designation with the IRS can expect the following rate from Stripe:
- 2.2% + 30¢ for non-American Express transactions
- 3.5% for American Express transactions
For new users, Stripe will waive these fees for first $15,000, meaning your nonprofit won’t pay anything unless you exceed $15,000 in online revenue. But this sweet deal only lasts a year. Once your nonprofit exceeds $15,000 or on the one year anniversary of the discount being applied, those fees will kick in. Unfortunately, this discount isn’t available for existing Stripe customers.
To get the nonprofit discount, reach out to Stripe at firstname.lastname@example.org. They’ll need the following information to update the pricing on your account:
- Your EIN
- A determination letter stating that you’re a 501(c)3 organization
- The email address associated with your Stripe account
It’s that easy! Making the switch to Stripe could end up saving your nonprofit a decent-sized chunk of change and give your supporters a great online donation experience.
Have any questions on why we like Stripe for nonprofits? Want to talk more about payment processors? Ask away in the comments.