The Complete Guide To Square For Nonprofits

Square gives nonprofits powerful tools to grow donations without breaking the bank.

WRITTEN & RESEARCHED BY
Erica Seppala
Editor & Senior Staff Writer

Last updated onUpdated September 17, 2025

REVIEWED BY

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Key Takeaways

Square is easy to use and cost-effective for nonprofits, offering tools like Cash App, donation buttons, and fundraising websites.
Nonprofits pay standard processing fees, so make sure to factor in these costs.
Square supports in-person, online, recurring, and event-based donations, plus merchandise sales and donor management tools.

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

Why Should You Use Square For Donations?
Advantages Of Using Square For Nonprofits
Limitations Of Using Square For Nonprofits
Square Fees & Rates For Nonprofits
How To Set Up Square For A Nonprofit
Using Cash App & Square For Donations
Alternatives To Square For Nonprofits
Is Square Right For Your Nonprofit?

Why Should You Use Square For Donations?

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.

Advantages Of Using Square For Nonprofits

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:

Flat-rate processing: Easy-to-understand pricing helps nonprofits budget effectively.
No hidden fees: There are no monthly or setup fees, and the backend has no surprise markups.
Fast and simple setup: Create donation buttons, sell merchandise, or launch a fundraising site, all on the same day.
Feature-rich tools: Square provides a one-stop platform for donations, event registration, and donor management.
Cash App functionality: Donors can quickly contribute via QR code in person or online.

Limitations Of Using Square For Nonprofits

Despite its advantages, Square has some drawbacks nonprofits should consider before committing.

No nonprofit discount: Processing fees are the same as for other users.
Account stability: Account freezes or terminations are rare but possible, as with any third-party processor.
Prohibited goods & services: Be sure to accurately disclose your organization type and avoid restricted items, or you could be classified as high-risk.
Not fully comprehensive: Square meets most small to mid-size nonprofit needs, but larger organizations may need more advanced tools that can cost thousands annually.

Square Fees & Rates For Nonprofits

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)	2.4% - 2.6% + $0.15
Keyed-in or virtual terminal	3.5% + $0.15
Online (donation button, invoice, Square Online)	2.9% - 3.3% + $0.30

These rates are for organizations that process under $250,000 per year. Nonprofits that exceed this threshold can request custom pricing.

How To Set Up Square For A Nonprofit

Getting started with Square is simple — just sign up on Square’s website, create an account, and download the Square app. You’ll need:

Full names for each account holder
Social Security Number and date of birth of the main account holder
US-based bank account
US home address
EIN (optional, but helpful)

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.

Using Cash App & Square For Donations

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.

Alternatives To Square For Nonprofits

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.

Dharma Merchant Services

Dharma is ideal for nonprofits that process a higher volume of transactions. With Dharma, you’ll get a dedicated merchant account, which is more stable and less prone to freezes than third-party processors like Square, Stripe, or PayPal.

Discounted rates are available for nonprofits.

Stripe

Stripe is primarily online-focused, making it a strong option for nonprofits taking most donations digitally. Like Square, it’s a one-stop payment platform, but with more robust support for international transactions.

Registered 501(c)(3) organizations get discounted rates.

PayPal

PayPal is another online-focused option with a large ecosystem, including peer-to-peer payments and in-person donations via PayPal Point of Sale.

Nonprofits registered as 501(c)(3) get reduced rates.

Shopify

Shopify works well for nonprofits that sell merchandise or want to accept donations through social media. As a full eCommerce platform, it supports integrated online stores and offers discounted processing rates for nonprofits.

Is Square Right For Your Nonprofit?

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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Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick

Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.

View Erica Seppala's professional experience on LinkedIn.