7 Best Nonprofit Payment Processing Tools in 2024

Why Helcim is good for nonprofits

With zero monthly fees and interchange-plus pricing, Helcim stands out as one of the best payment processors for nonprofits. This pricing model ensures that nonprofit organizations benefit from lower Visa and Mastercard interchange fees if they qualify for the Merchant Category Code (MCC) 8398, designated for Charitable and Social Services Organizations. This can result in significant savings on transaction costs. However, regular interchange rates will apply to organizations not classified under MCC 8398.

Helcim offers automatic volume discounts, further reducing costs for high-volume transactions. Its adaptable tools, like the CRM system for managing donor information, surcharging to pass processing fees onto donors, and subscription management for recurring donations, are valuable for nonprofits. Despite lacking specific nonprofit discounts and dedicated fundraising tools, Helcim’s cost-effective and versatile features make it a top choice for nonprofits.

Why Givebutter is good for nonprofits

Nonprofits looking for a cost-effective platform dedicated to them will find Givebutter suitable and easy to use. Aside from using Helcim’s surcharging tool, this is the only provider on the list that offers the potential of zero platform fees with full nonprofit functionalities. Its extensive fundraising tools include donation forms, auctions, events, and other campaign types. 

Additionally, the built-in CRM system helps manage donor relationships efficiently and integrations with over 1,000 third-party apps enhance functionality. It also has real-time engagement tools like personalized emails and video messaging that boost donor interaction and support. Overall, Givebutter’s user-friendly and feature-rich platform makes it an excellent choice for nonprofits.

Why Stripe is good for nonprofits

Stripe is an excellent choice for nonprofits due to its discounted processing rate for 501(c)(3) organizations, which helps minimize costs, especially with its zero monthly fee. Its robust developer tools and API allow nonprofits to customize their payment solutions and integrate them seamlessly with their existing systems. 

The platform also offers 24/7 customer support, ensuring that any issues can be resolved promptly. Although it lacks dedicated fundraising tools, Stripe’s flexibility and powerful features make it a strong option for tech-savvy nonprofits seeking a tailored payment processing solution.

Why PayPal is good for nonprofits

PayPal is a standout choice for nonprofits due to its global reach and donor familiarity. With zero monthly fees, nonprofits only pay per transaction, which helps manage costs effectively. It offers a discounted charity rate of 1.99% + $0.49 per transaction for 501(c)(3) organizations, helping to reduce processing costs. 

The familiarity of many donors with PayPal increases the likelihood of contributions. It supports multiple payment methods, including credit/debit cards, PayPal balance, and Venmo, providing flexibility for donors. The quick setup process allows nonprofits to start accepting donations swiftly, making it a convenient and efficient option for organizations of all sizes.

Why Square is good for nonprofits

Square is an excellent choice for nonprofits, especially those with a focus on in-person donations and sales. Its flexible hardware options, including contactless chip readers and POS systems, make it easy to accept payments at events or in physical locations. 

Its no monthly fees and easy setup help nonprofits get started without upfront costs. Robust reporting tools provide valuable insights into donations and sales, while omnichannel capabilities support both in-person and online transactions, offering nonprofits the flexibility they need to manage their funds effectively.

Why iATS is good for nonprofits

iATS is an excellent choice for nonprofits seeking integrated payment solutions tailored to their specific needs. With a specialized focus on nonprofits, iATS offers dedicated donation management and fundraising solutions. The platform seamlessly integrates with leading nonprofit management software, ensuring smooth data synchronization and simplifying administrative tasks. Additionally, iATS prioritizes donor data protection with robust security measures and PCI-DSS compliance, instilling trust among supporters.

Support for recurring donations is a key advantage, enabling nonprofits to manage predictable revenue streams for long-term sustainability. iATS also provides dedicated customer support that understands the unique challenges of nonprofit operations, offering knowledgeable assistance tailored to the sector’s needs.

Why Donorbox is good for nonprofits

Donorbox is ideal for small nonprofits looking for flexibility in payment processing. It uses both Stripe and PayPal/Venmo, giving better control over operating costs. Its donor management tool gives more control to its donors. Donors can easily log in and manage their settings and payment methods, providing a smooth and user-friendly experience. 

Its free plan is feature-rich and allows you to start accepting donations right away without any upfront costs. Its higher plan also accepts crypto or stock donations — something that other providers on this list don’t have.