How To Accept Donations Online

Online donations can help nonprofits reach more supporters, but processing costs and platform features vary significantly. This guide explains how to accept donations online and choose a payment option that fits your fundraising needs and budget.

Accepting Donations Online: What You Need To Know

Accepting donations online can help your organization:

• Collect contributions around the clock
• Set up recurring donations
• Reduce manual administrative work
• Maintain donor records
• Promote future fundraising campaigns

Before accepting donations, confirm your organization’s legal and tax status. You don’t necessarily need 501(c)(3) status to collect funds, but donations generally are not federally tax-deductible unless they are made to a qualified organization.

You may also need to register before soliciting donations in certain states, including states where online donors are located. Requirements and exemptions vary, so check the applicable state charitable-solicitation rules.

Organizations without 501(c)(3) status may be able to raise funds through crowdfunding, fiscal sponsorship by an eligible nonprofit, or other fundraising arrangements. Clearly tell donors whether their contributions are tax-deductible.

Choosing A Donation Platform

When comparing donation platforms, consider:

• Fees: Compare processing rates, platform fees, monthly charges, and optional donor-covered fees.
• Integrations: Check whether the platform connects with your website, accounting software, email marketing tools, and donor database.
• Reporting: Look for useful reports on donation totals, recurring gifts, campaigns, and donor activity.
• User experience: Choose a donation form that is easy to use on both desktop and mobile devices.
• Fundraising features: Consider recurring donations, peer-to-peer fundraising, text-to-give, campaign pages, and donor management tools.

General payment processors such as Square and PayPal may work well for straightforward donation collection, while nonprofit-focused platforms typically offer more specialized fundraising and donor-management features.

Choose the platform that provides the features you need at a total cost your organization can afford.

How To Collect Donations Online

Ready to start collecting donations? Here’s what you need to know:

Step 1: Choose A Donation Platform

Compare fees, payment methods, fundraising features, integrations, and donor-management tools. Options range from general payment processors to nonprofit platforms and crowdfunding services.

Step 2: Create Your Donation Page

Set up a clear, mobile-friendly donation page with a strong call to action. Depending on your campaign, you may also use social media donation buttons, auctions, or peer-to-peer fundraising pages.

Step 3: Select Payment Methods

Choose which payment options to accept, such as credit cards, ACH transfers, digital wallets, checks, or text-to-give. Available methods will depend on your platform.

Step 4: Promote Your Campaign

Share the campaign through email, social media, your website, and outreach to previous donors and supporters. Make donation links easy to find and share.

Step 5: Thank & Follow Up With Donors

Send donation receipts and tax information when applicable, along with a prompt thank-you message. Continue communicating with donors about your organization’s work and the impact of their contributions.

Can You Accept Donations For Free?

Some fundraising platforms don’t charge nonprofits platform or processing fees when optional donor tipping is enabled. Other platforms let donors choose whether to cover transaction fees.

However, “free” does not always mean there is no cost. The platform may rely on donor tips, charge for premium features, or deduct fees when donors decline to cover them.

Before choosing a platform, review:

• Processing and platform fees
• How donor tips are presented
• Whether donors can decline added costs
• Fees for premium tools or withdrawals
• How much of each donation your organization receives

The Bottom Line On Online Donations

Accepting donations online can help nonprofits reach more supporters, collect recurring gifts, and simplify fundraising administration.

Choose a platform that fits your budget, payment methods, fundraising strategy, and donor-management needs. Before launching, make sure your donation page is easy to use, your fees are clearly explained, and your organization follows applicable tax and charitable-solicitation requirements.

The right platform should make it easier for supporters to give and for your organization to manage those contributions effectively.