The Complete Guide To Stripe For Nonprofits
Stripe Payments can be a great tool for tech-savvy nonprofits, particularly those that take most of their donations online.
The ability to take online donations at a reasonable cost can be a huge benefit to modern nonprofit organizations. Stripe for nonprofits offers a wealth of useful tools that 501(c)(3) organizations can use to reach donors. Even better, Stripe for nonprofits comes at a discounted transaction rate.
Below, we’ll cover how much Stripe for nonprofits costs, what it offers, and how your organization can utilize Stripe’s nonprofit features. Is Stripe the best credit card processing company for your nonprofit? Read on.
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What Is Stripe For Nonprofits?
Stripe offers qualifying nonprofit organizations a 0.7% discounted rate on transactions. To qualify, you must have 501(c)(3) status, and at least 80% of your donations must be processed through Stripe.
It should be noted that, unlike Stripe’s default transaction rate, Stripe fees for nonprofits don’t cover quite as many features. For most nonprofits, this shouldn’t be a big deal, but it’s worth noting that features like Stripe Radar may cost more should you choose to use them. Additionally, some transactions, like American Express, do not qualify for the discounted rate.
Stripe Nonprofit Pricing
Stripe doesn’t charge monthly fees for basic services. Instead, all costs for non-premium features are bundled into a flat-rate transaction cost. Here’s how it breaks down:
- Credit Card Transactions (except American Express): 2.2% + $0.30
- American Express Transactions: 3.5%
- ACH Transactions: 0.8% (max. $5)
Note that American Express transactions can actually be more expensive under the Stripe nonprofit pricing, so keep that in mind if your organization processes a lot of Amex transactions. You can get a full breakdown of additional fees for Stripe services in our guide to Stripe processing fees.
How To Create A Stripe Nonprofit Account
Stripe doesn’t have nonprofit accounts per se; you just apply for a nonprofit discount. This can add to some confusion because Stripe uses the base processing rate to determine what other features are included in your account. Here’s how you do that:
How To Use Stripe For Nonprofits To Improve Your Donations & Fundraising
Stripe’s discounted nonprofit fees are nice, but you may be wondering how well the Stripe platform can meet the infrastructural needs of 501(c)(3) companies. The good news is that Stripe is a very customizable platform, although whipping it into the exact shape you want may take some technical skills or carefully selected integrations.
Alternatives To Stripe For Nonprofits
If Stripe sounds a little too technical for your nonprofit, or it just doesn’t fit your money-raising strategy, there are alternatives.
- Square: If you’re looking for an alternative third-party processor, especially one that excels at handling in-person transactions, you may want to consider Square for nonprofits. Square doesn’t offer discounted rates, but it does come with a robust set of donation options and a powerful suite of business productivity software. Square charges 2.9%+$0.30 for online transactions and 2.6%+$0.10 for in-person transactions. Get started with Square Payments here.
- PayPal: Perhaps the most similar competitor to Stripe, PayPal is an extremely popular third-party processor for nonprofits. Where Stripe is oriented toward customization and developers, PayPal is designed for ease of use and implementation. You’ll also be able to access PayPal’s massive ecosystem, which features peer-to-peer transaction support as well as eCommerce and in-person transactions through PayPal Zettle. Registered 501(c)(3) organizations are charged 1.99% + $0.49 for online transactions.
- Dharma Merchant Services: If you’re looking for a more stable option and don’t mind paying a monthly fee, you may want to consider Dharma Merchant Services. Dharma can set nonprofits up with a dedicated merchant account for $20/month. Dharma uses interchange-plus pricing for transactions rather than flat rates, making it a better fit for high-volume processing. Qualified nonprofits can get a discounted processing rate of interchange + 0.10% + $0.08 for in-person transactions, and interchange + 0.10% + $0.11 for virtual transactions. Check Out Dharma Merchant Services.
In Summary: Stripe For Nonprofits
Stripe Payments can be a great tool for tech-savvy nonprofits, particularly those that take most of their donations online. Stripe’s nonprofit discount is significant and competitive; just keep in mind that not all donations qualify for the discounted rate. You’ll also want to factor in the supplemental fees Stripe charges for advanced features; these can add up quickly.