The Complete Guide To Stripe For Nonprofits

The ability to accept online donations at a reasonable cost is a game-changer for modern nonprofits. Stripe makes this easier by offering discounted rates for 501(c)(3) organizations, along with a robust set of tools for collecting and managing donations.

This guide covers Stripe’s nonprofit pricing, features, setup process, and alternatives so you can decide if it’s the right fit for your organization.

What Is Stripe For Nonprofits?

Stripe is a third-party payment processor that gives qualifying nonprofits a 0.7% discount on transaction fees. Qualifying is easy, only requiring your organization to:

• Have verified 501(c)(3) status
• Process at least 80% of donations through Stripe

Keep in mind that some transactions (like American Express) do not qualify for the discounted rate.

Stripe Nonprofit Pricing

Stripe has no monthly fees for basic services. Most costs are rolled into a flat per-transaction rate:

If your donors use Amex often, you could end up paying more under the nonprofit pricing, so make sure to compare your options.

To better estimate your costs, get a full breakdown in our guide to Stripe processing fees.

How To Apply For Stripe’s Nonprofit Discount

Stripe doesn’t have separate nonprofit accounts. Instead, you’ll apply for a discount after opening a regular account. Here’s how to get started:

Step 1:  Create A Stripe Account

Sign up for a Stripe account by following the prompts on the website.

Step 2: Gather Required Documents

You’ll need to show that at least 80% of your donations are tax-deductible. Non-eligible transactions include membership fees, tuition, ticket sales, registration fees, and auction payments.

Step 3: Apply for your nonprofit discount

Finally, you’ll need to provide proof of your 501(c)(3) status with your EIN or IRS determination letter.

Submit this along with the information you gathered in step 2 by email to [email protected].

Using Stripe To Boost Nonprofit Fundraising

Stripe is a very customizable platform, so you can create a platform that works best for your nonprofit. Here are some of the most useful ways you can use Stripe for fundraising.

Alternatives To Stripe For Nonprofits

If Stripe feels too technical for your organization, or it doesn’t fit your fundraising strategy, you still have plenty of solid options.

• Square: Square is a great choice for nonprofits that need strong in-person payment tools. While it doesn’t offer discounted nonprofit rates, Square provides a wide range of donation features and business productivity tools. It’s especially useful if you plan to accept donations at events or in person.
• PayPal: PayPal is great for nonprofits that want something quick and easy to set up. While Stripe emphasizes customization and developer flexibility, PayPal is built for ease of use. It also gives nonprofits access to its large ecosystem, including peer-to-peer payments, eCommerce, and in-person payments through PayPal Point of Sale.
• Dharma Merchant Services: If your nonprofit processes higher volumes or you want a dedicated merchant account, Dharma is worth considering. Dharma charges a monthly fee but uses interchange-plus pricing, which can be more cost-effective at scale. Nonprofits can also qualify for discounted processing rates compared to standard business accounts.

Is Stripe Right For Your Nonprofit?

Stripe can be an excellent option for nonprofits, especially if:

• Most of your donations come in online
• You’re comfortable with tech setup or integrations
• You’ll benefit from recurring donations and eCommerce tools

Stripe’s nonprofit discount is competitive, but not all payment types qualify, and optional add-on fees can increase your costs. That’s why we always recommend shopping around before committing.

For tech-savvy organizations, Stripe is a cost-effective way to scale fundraising. If you’d prefer something simpler, Square or PayPal may be a better fit. And if you want even more options, make sure to check out our list of the best credit card processors for nonprofits to find the best match.