Best Payment Processing for Nonprofits

Nonprofit payment processing isn't just about accepting credit cards — it's about making giving easy, collecting recurring donations, generating tax receipts, and keeping as much of each donation as possible. Many processors offer discounted nonprofit rates (saving 0.5–1% per transaction), and purpose-built donation platforms include features like fundraising pages, peer-to-peer campaigns, and donor CRM integration. The right choice depends on your giving volume, whether you need event ticketing, and how important integrated donor management is. Here are seven processors nonprofits are using in 2026.

Detailed Reviews

Stripe (Nonprofit Rate) — 2.2% + $0.30

Stripe offers discounted processing for verified 501(c)(3) organizations: 2.2% + $0.30 vs. the standard 2.9% + $0.30. That 0.7% discount adds up — on $100K in annual donations, it saves $700. Stripe handles one-time and recurring donations, supports Apple Pay and Google Pay, and integrates with virtually every website platform and donation tool. The API flexibility means you can build custom donation experiences. For tech-savvy nonprofits with development resources, Stripe's nonprofit rate is the most cost-effective option. The limitation: you need technical resources to implement (or use a platform that integrates Stripe). Stripe is infrastructure, not a turnkey donation page.

Verdict: Best processing rate for tech-savvy nonprofits with development resources or a platform that uses Stripe.

PayPal Giving Fund — 0% processing

PayPal Giving Fund covers 100% of processing fees for enrolled charities, meaning donors' entire contribution goes to your nonprofit. Donors give through PayPal's charity search, eBay for Charity, or other PayPal-integrated channels. Your nonprofit receives 100% of the donation (PayPal absorbs fees from a separate fund). This is the only true zero-fee option for nonprofits. The limitation: you must be enrolled in PayPal Giving Fund (requires 501(c)(3) status), you can't customize the giving experience, and you don't receive donor contact information for every gift (PayPal controls the donor relationship). It's free money, but with less control.

Verdict: Best for nonprofits wanting zero processing fees (with the tradeoff of less donor data).

Tithe.ly — 2.9% + $0.30

Tithe.ly is the leading digital giving platform for churches and faith-based nonprofits. Donation pages, mobile giving, text-to-give, kiosk giving, and recurring donations are all included on the free plan. The processing rate (2.9% + $0.30) is standard, not discounted. Contribution statements generate automatically. The church-specific features — giving campaigns, pledge tracking, integration with ChMS platforms — make it the default for religious organizations. Tithe.ly also offers a church app builder and event registration. For churches already using Tithe.ly for Sunday giving, it's the natural choice for all donation processing. The limitation: the rate is higher than Stripe's nonprofit discount, and the platform is faith-oriented (secular nonprofits may prefer other options).

Verdict: Best donation processing platform for churches and faith-based nonprofits.

Bloomerang Payments — 2.4% + $0.30

Bloomerang is a donor CRM that includes integrated payment processing. When a donor gives through your Bloomerang-powered donation page, their gift, payment, and donor profile are all updated in one system — no syncing between a payment processor and a separate CRM. The processing rate (2.4% + $0.30) includes the discount for nonprofits. Recurring giving, peer-to-peer fundraising, and event registration are built in. The limitation: you need to be a Bloomerang CRM customer (plans start around $99/month) to use the payments integration. For nonprofits already using Bloomerang, the integrated experience is seamless. For those on another CRM, the switching cost may not be worth it.

Verdict: Best for nonprofits using Bloomerang CRM who want integrated payments and donor management.

Square — 2.6% + $0.10 (in-person)

Square is the easiest way for nonprofits to accept in-person donations — at galas, events, fundraiser dinners, or walk-a-thons. The free card reader connects to your phone. No monthly fee, no setup, no contract. Processing is 2.6% + $0.10 for tap/chip and 2.9% + $0.30 online. Square Invoices (free) handles pledge collection. For nonprofits that receive significant in-person giving (events, walk-ins, Sunday services), Square removes friction. The limitation: Square isn't a donation platform — no tax receipts, no donor management, no recurring giving management. You'll need to handle those separately.

Verdict: Best for event-based and in-person donation collection where simplicity matters.

Donorbox — 1.5% platform fee + processing

Donorbox provides embeddable donation forms, fundraising pages, and peer-to-peer campaigns that work with Stripe or PayPal as the payment processor. The free plan covers basic donation pages (with 1.5% platform fee on donations). Paid plans ($39–$139/month) reduce or eliminate the platform fee and add features like text-to-give, donor management, and crowdfunding. The donation pages are clean, mobile-optimized, and quick to set up (most nonprofits launch in under 30 minutes). Recurring giving, designation (fund choice), and tribute gifts are included. The limitation: the 1.5% platform fee (on the free plan) stacks on top of Stripe/PayPal processing fees, bringing total fees to 3.7%–4.5% per donation.

Verdict: Best for nonprofits wanting quick, professional donation pages with peer-to-peer fundraising.

Classy — Custom pricing

Classy is the enterprise fundraising platform for large nonprofits running major campaigns: galas, peer-to-peer events, crowdfunding, and year-end giving drives. The platform manages the entire campaign lifecycle from page design to donation processing to donor follow-up. Integrations with Salesforce, HubSpot, and other enterprise CRMs consolidate donor data. Processing rates are custom, and the platform fee (typically 5–8%) is significant. For nonprofits running $1M+ in annual online fundraising, Classy's campaign management tools justify the cost. For smaller organizations, the pricing is prohibitive.

Verdict: Best for large nonprofits managing complex, multi-channel fundraising campaigns.

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