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Square gives nonprofits powerful tools to grow donations without breaking the bank.
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Square is known for its simplicity and affordability, and it’s a solid choice for small businesses as a payment processor and POS system for restaurants and retail. But can it work for nonprofits, too?
This guide covers everything you need to know about using Square for donations, including costs, fees, features, and whether it’s the right payment processor for your nonprofit.
Table of Contents
Square’s nonprofit tools combine affordability with versatility. Square makes it easy to collect donations online, in person, or via mobile apps, with no hidden fees or long-term commitments.
One standout feature is Square’s Cash App integration, which allows individuals to donate via QR code, either in person or online. This works alongside Square’s other tools, including the point of sale app, Square Terminal, Stand, and Register, giving nonprofits multiple ways to receive contributions.
Square is designed to simplify payment processing while providing a range of tools that many small to mid-sized nonprofits need. It’s ideal for nonprofits that want to start quickly without upfront costs.
Some key benefits include:
Despite its advantages, Square has some drawbacks nonprofits should consider before committing.
Square keeps its fees transparent, but unfortunately, there are no discounts for nonprofits. Fees are based on how donations are collected:
| Donation Method | Fee |
|---|---|
| In-person (tap, dip, swipe) | 2.5-2.6% + $0.10-$0.15 |
| Keyed-in or virtual terminal | 3.5% + $0.15 |
| Online (donation button, invoice, Square Online) | 2.9% + $0.30 |
These rates are for organizations that process under $250,000 per year. Nonprofits that exceed this threshold can request custom pricing.
Getting started with Square is simple — just sign up on Square’s website, create an account, and download the Square app. You’ll need:
Once your account is active, link your organization’s bank account, and you’re ready to start collecting donations and tracking donations and donor information on the Square Dashboard.
Square offers multiple tools to streamline donation and fundraising efforts. Here’s a breakdown of Square’s online donation and fundraising tools:
| Tool / Feature | How It Helps Nonprofits |
|---|---|
| Cash App | Create a unique “cashtag” (e.g., cash.app/$Your_Nonprofit) for peer-to-peer donations. |
| Square Online | Use templates to build a free site or eCommerce store to accept donations, sell merchandise, or run campaigns, or use a plug-in for your existing site. Square Online integrates with Cash App and Square hardware. |
| Square Donate Button | Embed buttons in emails, social media, or messaging apps to extend fundraising reach. |
| Recurring Donations | Set up ongoing contributions to support daily operations and future growth. |
| Merchandise Sales | Sync inventory across POS and online stores, track items, and sell at events or online. |
| Event Registration & Ticketing | Sell tickets online or in person, with e-delivery or pickup options; integrates with Eventbrite. |
| Donor Engagement | Export donor data, track contributions, and build email lists for future campaigns. |
And here’s a breakdown of Square’s offline tools:
| Tool / Feature | How It Helps Nonprofits |
|---|---|
| In-Person Donations | Accept payments using Square POS, NFC-compatible terminals, or QR codes through Cash App. |
| Phone Donations | Use Square’s virtual terminal for safe, secure credit card processing over the phone. |
| Bookkeeping & Donor Tracking | View sales history, categorize income, and analyze donor trends. Integrates with QuickBooks for nonprofit accounting. |
Square works well for many nonprofits, but it’s not the only option. If your organization needs different features, higher transaction volume support, or international processing, consider these alternatives.
Square is a strong starting point for most nonprofits, offering free software, competitive fees, and multiple donation channels. Account stability and the lack of a nonprofit-specific discount are considerations, but these issues are not unique to Square.
For organizations just getting started or that process modest donation volumes, Square is a practical, low-cost solution. As your nonprofit grows, you can assess whether more advanced tools or specialized software are needed.
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