Payments Archives | Bloomerang https://bloomerang.com/topic/payments/ Thu, 30 Apr 2026 02:59:46 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 Accountability Means Consequences. It’s Time the Nonprofit Sector Acted Like It. https://bloomerang.com/blog/nonprofit-platform-accountability-consequences/ https://bloomerang.com/blog/nonprofit-platform-accountability-consequences/#respond Thu, 30 Apr 2026 02:59:33 +0000 https://bloomerang.com/?p=149509 A Chronicle of Philanthropy opinion piece published last week laid out a reasonable position on online giving platforms. The authors, leaders from Association of Fundraising Professionals (AFP), GivingTuesday, and The Nonprofit Alliance, argued that the sector needs self-regulatory standards, not legislation. They worried, reasonably, that sweeping state laws and mandatory opt-in requirements could cut off […]

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A Chronicle of Philanthropy opinion piece published last week laid out a reasonable position on online giving platforms. The authors, leaders from Association of Fundraising Professionals (AFP), GivingTuesday, and The Nonprofit Alliance, argued that the sector needs self-regulatory standards, not legislation. They worried, reasonably, that sweeping state laws and mandatory opt-in requirements could cut off billions in donations and hurt the smallest organizations most. On the narrow question of legislative risk, they’re not wrong.

Today, AFP published something more concrete: a formal set of nonprofit-first considerations for platforms, reviewed by AFP’s ethics committee and endorsed by GivingTuesday and The Nonprofit Alliance. I’ve read it carefully. It deserves a specific response.

There’s a frustration I keep hearing from fundraising professionals who work on the front lines of this problem every day. Not frustration with the principles being proposed. Frustration with the gap between the principles and anything that could actually enforce them.

What actually happened

Last year, GoFundMe created 1.4 million donation pages for nonprofits. No consent. No notice. Pages timed to go live before year-end giving season, when donation volume is highest and competition for donor attention is fiercest. They pulled data from public IRS records, took a percentage of every donation, and let their pages rank above the organizations’ own websites.

Nonprofits found out by accident. A board member googling the organization. A donor asking a question. What they found was a page collecting money in their name, with no access to donor information, no way to thank anyone who gave, and no path to a relationship. To claim the page, they had to accept GoFundMe’s binding arbitration terms.

This was not a product launch that moved too aggressively. It was not an engineering team that didn’t think through the implications. It was a calculated decision to build a revenue stream on assets that belong to someone else. The identity. The mission. The donor trust that nonprofits spend years earning.

When I wrote about it at the time, I called it a full-frontal assault on donor trust. I’d use the same words today.

What AFP got right, and where the gap remains

AFP’s considerations document names the GoFundMe behavior directly. Consideration two says platforms may not proactively promote a nonprofit’s donation link in search results unless the nonprofit or a supporter has actively created a campaign. That is the GoFundMe problem, in plain language, called out as unacceptable. The sector has now said, in writing, that what happened was wrong.

The fee transparency provisions are right. The data portability provisions are right. Nonprofits should own their donor relationships. Donors should know what percentage of their gift actually arrives. These are the right principles.

My question is still the same one. What does a platform lose by ignoring them?

The endorsement language from GivingTuesday and The Nonprofit Alliance commits to “working alongside… to gather feedback, build alignment, and strengthen these ideas over time.” More process. More dialogue. No consequences.

Self-regulatory principles work when the parties involved have aligned incentives to follow them. Platforms and nonprofits don’t have aligned incentives. GoFundMe created unauthorized pages and captured year-end donations. It made money. The nonprofits those pages represented lost donor relationships. The principles proposed after the fact didn’t change that math. They didn’t cost GoFundMe anything.

That is the accountability problem. Not the content of the principles. The absence of consequences.

What real accountability requires

The organizations behind these efforts set the professional standards this sector runs on. AFP defines what ethical fundraising looks like for tens of thousands of professionals. GivingTuesday mobilizes millions of donors and nonprofits around the world every year. The Nonprofit Alliance advocates on behalf of organizations across the country.

Employers that run matching programs ask these organizations which platforms to use. Community foundations ask which platforms they should recommend. Major donors ask which platforms are trustworthy. Small nonprofits across the country look to these organizations for guidance on where to direct their supporters.

They don’t endorse platforms. But they define what acceptable behavior looks like. That’s real authority.

A public standard isn’t a product recommendation. It’s a line. When AFP says a practice is inconsistent with ethical fundraising, fundraising professionals pay attention. When GivingTuesday and The Nonprofit Alliance say the same, employers running matching programs pay attention. Foundations pay attention. The platforms themselves pay attention.

That influence is an asset. Right now it’s not being used like one.

Real accountability looks like this: sector organizations establish clear, public behavioral standards for giving platforms. Platforms that meet those standards earn endorsement. Platforms that don’t lose that endorsement. Publicly. With an explanation of why.

That removal has to matter enough that platforms change behavior to get it back. That’s what a consequence looks like.

On fee transparency specifically: the AFP considerations list it as a nonnegotiable. I agree. But we’ve been talking about fee transparency in this sector for years and donors still regularly don’t know what percentage of their gift actually arrives. If something is genuinely nonnegotiable, there has to be a cost for not doing it. Inclusion in a public scorecard. Loss of a certification. Something a platform’s leadership has to explain to its board.

The opt-in versus opt-out debate is a distraction from the more important question. It’s not about a default setting. It’s about whether a platform can use a nonprofit’s identity and donor relationships as raw material for a revenue model without that organization’s knowledge or agreement. The answer to that question should not be determined by a checkbox. It should be determined by whether the sector has decided this behavior is acceptable. Right now, the answer appears to be: acceptable enough.

What I’m asking for

I understand the nervousness about legislation. State attorneys general acting independently, mandatory opt-in rules written without sector input, legal frameworks that make no distinction between fundamentally different platforms. These are real risks. The organizations arguing against blunt legislative approaches are right to flag them.

But you can’t tell state regulators to stand down and then offer a principles document in return. That’s not a trade. State regulators are acting because someone has to. If sector organizations want to fill that role, they need to fill it with actual authority. Not aspirational standards.

AFP’s document calls these considerations “a baseline and a starting point.” The sector now has a shared, written definition of what good platform behavior looks like. The next step is deciding what it costs platforms to fall short of it.

Fundraising professionals at AFP ICON this week know exactly which organizations in their communities got hurt. They know about the small food bank that discovered a GoFundMe page collecting donations in its name and couldn’t do anything about it without a lawyer. The animal shelter that lost months of donor acquisition because a third-party page was outranking its own site. The youth arts program whose executive director spent a week trying to navigate a claims process designed to frustrate her.

These organizations don’t need a framework. They need the sector to treat protecting them as the actual job.

Principles are where accountability starts. Consequences are what make it real. The sector has the authority to create those consequences. The question is whether it’s willing to use it.

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Bloomerang’s Vision for 2026: Living the Promise of One Platform https://bloomerang.com/blog/vision-for-2026/ https://bloomerang.com/blog/vision-for-2026/#respond Mon, 26 Jan 2026 20:08:00 +0000 https://bloomerang.com/?p=146110 There are moments when ambition is easy to talk about—and moments when it’s time to deliver on it. This blog is about the latter. At Bloomerang, we’ve spent years building toward a simple but demanding promise: one platform that allows nonprofit staff to focus on what truly matters. Serving their causes. Sharing their stories. Building […]

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There are moments when ambition is easy to talk about—and moments when it’s time to deliver on it.

This blog is about the latter.

At Bloomerang, we’ve spent years building toward a simple but demanding promise: one platform that allows nonprofit staff to focus on what truly matters. Serving their causes. Sharing their stories. Building real relationships with the people who believe in their mission.

The promise of the Giving Platform is not more features or more time spent in software. It’s the opposite. It’s about giving nonprofit teams clarity faster, helping them uncover insights they never had access to before, and enabling them to act with confidence—while spending the least possible time inside the system to do it.

That promise has guided every hard decision we’ve made along the way. In 2026, our focus is clear: delivering fully on that promise—not in theory, but in the daily lived experience of nonprofit teams.

If there has ever been a time to be excited about making complex problems work simply, this is it.

The hard work we did first

For nonprofits, fundraising has never lacked heart. It has lacked infrastructure that respects time, context, and continuity.

Most nonprofits move from one fundraising moment to the next—events, appeals, campaigns—without the benefit of momentum compounding behind the scenes. Each effort generates insight, engagement, and signals from supporters, but too often those signals are trapped in disconnected tools so teams feel like they’re from scratch with each new initiative.

That feeling is understandable—but it’s also deeply misleading. Opportunity never resets. The system and tools you trust just fail to carry that opportunity forward.

That’s the problem we set out to solve first.

In 2025, we made a deliberate choice to do the hard work of unifying the core of nonprofit operations. Not slapping logos on acquired tools. Not loosely integrating data. Not bolting separate systems together and calling it a day. But building a single Giving Platform where donor activity, fundraising performance, volunteer engagement, and payments live together and reinforce one another.

That foundation is now real—and it’s already delivering measurable impact.

Nonprofits using the complete Bloomerang Giving Platform grow 1.5x faster than those relying on disconnected tools. They see an average 22% increase in the number of monthly recurring donations, and those recurring gifts are 58% larger than the industry average. Organizations using the full platform also achieve meaningfully higher donor retention year over year.

These results don’t come from working harder or adding complexity. They come from clarity. When systems are unified, insight compounds. Decisions improve. And teams stop losing ground between fundraising moments.

That was the work that had to come first.

Deepening the Giving Platform—so the work feels seamless

With that foundation in place, the question for 2026 is not whether the Giving Platform works. It does.

The question is how far we can take it.

Nonprofits using the full platform can already see how donors, volunteers, and prospective supporters behave across moments that used to live in isolation. Engagement is no longer fragmented. Patterns are visible. Momentum carries forward instead of resetting after every campaign.

In 2026, our focus is on deepening that experience—making the platform feel seamless in daily work, not just conceptually unified. This is the year we remove even more friction so insight surfaces faster, actions feel more confident, and nonprofit teams spend less time navigating systems and more time advancing their mission.

That focus centers on three deliberate areas:

First, deepening the platform itself.
We are strengthening the connective tissue across fundraising activity, constituent data, volunteer engagement, and payments so every interaction contributes to a single, continuous story. The goal is to eliminate the sense of “starting over” and allow learning, relationships, and results to compound naturally over time.

Second, delivering AI that works for fundraisers.
This is not AI layered onto disconnected data providing generic answers. Let’s be honest, you could just use Chat GPT for that. Bloomerang’s AI fundraising partner, Penny, is grounded in your data stored securely within the Giving Platform and informed by real nonprofit best practice–over 2,000 consulting wins to be exact. Its role is to surface what matters, explain why it matters, and help teams know where to focus next—without replacing judgment or human connection. AI should remove analytical friction, not add cognitive load.

Third, continuing fundraising innovation where performance matters most.
From checkout optimization to continuously improving conversion, we are taking responsibility for the mechanics of giving. Nonprofit teams shouldn’t have to become experts in optimization just to raise more. High performance should be built in, not bolted on. In 2026 all our customers will benefit from a dedicated team that will continually optimize the giving performance for free!

The promise we’re ready to deliver

Across all three areas, the principle is the same. Technology should expand human capacity, not compete with it. It should make insight easier to reach, decisions easier to trust, and action easier to take—while demanding as little time as possible in return.

That is how we deliver on the promise of the Giving Platform.

Less time managing systems.
More time serving causes.
More space to share stories that inspire generosity.

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8 best nonprofit credit card processing options in 2026 https://bloomerang.com/blog/nonprofit-credit-card-processing/ https://bloomerang.com/blog/nonprofit-credit-card-processing/#comments Thu, 08 May 2025 12:23:13 +0000 https://bloomerang2dev.wpengine.com/?p=105787 Leveraging a secure payment solution throughout the donation process strengthens donor trust and provides supporters with a convenient payment method. Credit card payments are donors’ preferred giving methods—63% of donors prefer to give online with a credit or debit card, followed by direct mail (16%), PayPal (10%), wire transfer (5%), cash (4%), digital wallet (1%), […]

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Leveraging a secure payment solution throughout the donation process strengthens donor trust and provides supporters with a convenient payment method. Credit card payments are donors’ preferred giving methods—63% of donors prefer to give online with a credit or debit card, followed by direct mail (16%), PayPal (10%), wire transfer (5%), cash (4%), digital wallet (1%), and text-to-give (1%).

In this guide, we’ll review the top credit card processing solutions for nonprofits and best practices for choosing the right platform. We’ll cover:

Leverage a secure payment processor built specifically for nonprofits. Explore Bloomerang.

Nonprofit credit card processing FAQs

What are nonprofit credit card processors?

Nonprofit credit card processing solutions are tools nonprofit organizations use to complete credit and debit card transactions quickly and in compliance with donation processing standards. They encrypt sensitive financial data and ensure that payments are securely transmitted from donors’ accounts to the organization’s account.

Why is your nonprofit’s payment processing platform important?

A powerful payment processor allows nonprofits to collect funds quickly, easily, and securely. These tools make it easy to start using donated funds as soon as possible to keep your mission moving forward.

Choosing the right payment platform can also help build trust with supporters. The 2025 Give.org Donor Trust Report found that 73% of donors say it’s important to trust a nonprofit organization before giving. However, only 19% highly trust charities.

By leveraging a secure payment processor that protects donors’ information, you can reassure supporters that your organization is a responsible steward of their gifts.

What payment types can nonprofit payment processors accept?

These platforms can manage a wide range of transactions, including:

  • Credit cards
  • Debit cards
  • Google Pay
  • Apple Pay
  • Samsung Pay
  • ACH (i.e., electronic bank transfer)

Many platforms also offer modern payment methods like donor-advised funds, cryptocurrency, and Venmo.

Do nonprofits have to pay payment processing fees?

Yes, and it’s important to understand how payment processing fees work so you can find the right solution that fits your budget and generates the highest return on your investment.

When evaluating costs, it’s helpful to distinguish between payment processing fees and platform fees, since they cover different services.

Here is some terminology that you might see when exploring payment processing costs:

Nonprofit credit card processing terms to know (explained in the list below)

  • Platform fee:  Typically, a monthly or annual fee for using the payment platform. Platform fees support the tools and infrastructure that allow your nonprofit to collect, manage, and track donations. Depending on the provider, this may be a monthly or annual subscription fee, a percentage-based fee applied to donations, or a combination of both.
  • Transaction or payment processing fee: Charges incurred per transaction, typically calculated as a percentage of each transaction plus a fixed fee, such as 2.0% + $0.30 per transaction. Payment processing fees vary based on the payment method, whether credit card, ACH, etc.

In short, processing fees pay for the secure transfer of funds, while platform fees pay for the software and tools that make online fundraising possible.

When choosing the right platform for your nonprofit, calculate the effective rate for each option by dividing total fees by total expected donations. This can give you an idea of how much you will pay for each platform.

Additionally, many payment platforms offer discounts for nonprofits or other ways to reduce costs, such as enabling donors to cover processing fees. Look into these benefits as you compare top options.

Do nonprofits get credit card processing discounts?

Often, yes. If you’re interested in using a payment processor that’s not specifically built for nonprofits, like PayPal or Stripe, look into fee discounts and other perks available to nonprofits.

Are there any hidden fees involved with payment processing?

In addition to monthly or transaction fees, some payment processors may come with extra fees that aren’t included in the initial pricing information. Look out for additional fees like:

  • Setup fees
  • Monthly minimums
  • Integration fees

Depending on your nonprofit’s budget, these fees may add up over time and reduce your ROI. Be thorough with your questions in each demo to ensure you fully understand each platform’s fee structure and choose the best solution for your fundraising efforts.

How quickly can nonprofits access donated funds?

It depends on the payment processing system. Typically, platforms make funds available in one to three business days. Some platforms may offer same-day or instant payment transfers for an extra fee, which can come in handy in times of urgent need.

The top nonprofit credit card processors

Note: It’s important to understand that many payment processors advertise “processor-only” pricing. This means they charge a fee to securely process credit card or ACH transactions—but they do not include the tools nonprofits need to fundraise online, such as donation forms, peer-to-peer campaigns, event registration, reporting, or donor management.

Most organizations using a standalone processor will also need a separate fundraising platform, which comes with its own fees. Those platform fees can vary widely depending on the provider and the specific tools, features, and fundraising capabilities a nonprofit chooses to use.

Top Features Payment Methods Payout Timeline Processing Fees
Bloomerang Payments
  • Instant approval
  • Ability to process one-time and recurring gifts
  • Automatic card updates
  • Mobile app compatibility
  • Industry-leading PCI compliance and fraud monitoring
Google Pay, Apple Pay, credit/debit cards, ACH, and in-person donations Flexible payout schedules that your organization can fully control A processing fee of 2.0% + $0.30 per transaction
Stripe Access to over 100 payment methods and global reach Credit/debit cards, Apple Pay, Afterpay, PayPal, Google Pay, and more Daily automatic Nonprofit rate of 2.2% + $0.30 transaction fee per transaction after application and approval
Square Automatic sorting of donors into a segmented directory Cash, checks, ACH bank transfers, credit/debit cards, swipe or chip cards, and contactless NFC payments like Apple Pay and Google Pay 1-2 business days 2.9% + 30¢ per transaction
PayPal Donate button for your nonprofit’s website Major credit/debit cards, PayPal, and Venmo 2-3 business days Discounted rate for charities of 2.89% and a fixed fee
Authorize.Net Automatic, monthly credit card updates Credit/debit cards, PayPal, Apple Pay, and eCheck 2-3 business days Monthly gateway is $25 with a 2.9% and $0.30 transaction fee
Clover Point-to-point encryption, tokenization, and EMV Cash, checks, credit/debit cards, Apple Pay, Google Pay, and Samsung Pay 1-3 business days Rates start at 2.3% + $0.10 per transaction
KeelaPay In-house support contained in one service Visa, Mastercard, American Express, and ACH Customizable disbursements; payments can be withdrawn nightly, weekly, or monthly Uses Stripe and PayPal to process donations; transaction fees of 2.2% + $0.30
Dharma Merchant Services eCommerce integration Credit cards 2 business days $15 per month fee, processing fees of 0.10% + $0.08 for storefront payments, and 0.10% + $0.11 for virtual payments

1. Bloomerang Payments: Best for a unified payment solution for nonprofits

Best for: Nonprofits that want to leverage a secure payment processor integrated with their Bloomerang CRM and online fundraising tools.

Top Features: 

Bloomerang is the top integrated payment processing option for nonprofits that want to protect donor information, leverage donor data for future campaigns, and accept and deposit payments all in one place.

Other payment processors integrate with Stripe and PayPal, so nonprofits may not be able to access nonprofit-specific giving methods and may be charged additional fees. Bloomerang Payments is built on top of Stripe, allowing for customization to suit your nonprofit’s needs.

One of the greatest benefits of the Bloomerang Payments system is its industry-leading fraud management and protection. Fraud management is included in the system, so nonprofits aren’t charged extra for this service. Bloomerang Payments is PCI-compliant, and we prioritize donor data protection.

Here are a few additional features that make Bloomerang Payments a top option for nonprofits:

  • Instant approval
  • Ability to process one-time and recurring gifts
  • Automatic card updates
  • Real-time payout information
  • Automatic updates of outdated card information
  • Daily deposits
  • Mobile app compatibility
  • Industry-leading PCI compliance and fraud monitoring
  • Simple setup with expert support
  • Seamless donor data collection with a native Bloomerang CRM integration

In addition, tap-to-pay is an exciting new feature within Bloomerang Payments. With this functionality, donors can tap their credit card, Apple Pay, or Google Pay digital wallet onto a mobile device and have their gift processed through the Bloomerang mobile app. Tap-to-pay creates a speedy in-person donation process and doesn’t require any specialized card readers.

Bloomerang’s Tap-to-Pay feature is shown processing a mobile donation.

Additional Payment Methods Accepted: Google Pay, Apple Pay, debit, credit, ACH, in-person donations

Payout Timeline: Bloomerang Payments provides flexible payout schedules that your organization can fully control

Pricing:  A processing fee starting at 2.0% + $0.30 per transaction.

Bloomerang Payments offers the secure payment system you need to build donor trust. Schedule a demo here.

2. Stripe

Screenshot of the Stripe homepage, a nonprofit credit card payment processing option

Tool for: Nonprofits looking to easily accept global payments and access instant payouts if needed.

Top Features: 

  • Access to over 100 payment methods
  • Global reach
  • Machine-learning optimizations that help mitigate fraud

Payment Methods: Credit/debit cards, Apple Pay, Afterpay, PayPal, Google Pay, and many more

Payout Timeline: Daily automatic

Pricing: Nonprofit rate of 2.2% + $0.30 transaction fee per transaction after application and approval

3. Square

Screenshot of the Square homepage, a payment processing option for nonprofits

Tool for: Nonprofits looking to manage point of sale and online transactions.

Top Features: 

  • Square Reader to accept payments on a tablet or smartphone
  • Automatic sorting of donors into a segmented directory
  • Square Analytics to access real-time reports and track fundraising progress

Payment Methods: Cash, checks, ACH bank transfers, credit/debit cards, swipe or chip cards, and contactless NFC payments like Apple Pay and Google Pay.

Payout Timeline: 1-2 business days

Pricing: 2.9% + 30¢ per transaction

4. PayPal

Example of a donation page built by PayPal, a nonprofit credit card processing option

Tool for: Nonprofits looking for a payment processor that prioritizes digital conversions.

Top Features: 

  • Ability to add a donate button directly to your nonprofit’s website
  • Use invoicing tools to collect pledged donations
  • Ability to build a custom donation flow with PayPal Payments Pro

Payment Methods: Major credit cards, debit cards, PayPal, and Venmo

Payout Timeline: Two to three business days

Pricing: Discounted rate for charities of 2.89% and a fixed fee

5. Authorize.Net

Screenshot of the Authorize.Net homepage, a payment processing option for nonprofits

Tool for: Nonprofits looking for a wide variety of payment types to offer donors, from eCommerce to eCheck, point of sale, mobile payments, and more.

Top Features: 

  • Automatic, monthly credit card updates
  • Store credit card information to simplify repeat donations
  • Digital invoicing to receive payments faster

Payment Methods: Credit/debit cards, PayPal, Apple Pay, eCheck

Payout Timeline: 2-3 business days

Pricing: Monthly gateway is $25 with a 2.9% and $0.30 transaction fee

6. Clover

Example of Clover’s POS system

Tool for: Nonprofits looking to accept donations via multiple giving methods, including POS, mobile, and desktop

Top Features: 

  • Keep donor data secure with point-to-point encryption, tokenization, and EMV
  • Customized integrations to suit your nonprofit’s needs
  • Access to integration help and growth support

Payment Methods: Cash, checks, credit cards, debit cards, Apple Pay, Google Pay, Samsung Pay

Payout Timeline: 1-3 business days

Pricing: Rates start at 2.3% + $0.10 per transaction

7. KeelaPay

Representation of Keela’s native integration between their payment processing system and their donor management system

Tool for: Nonprofits looking for a payment processing system that integrates with the Keela CRM and fundraising tools.

Top Features: 

  • In-house support contained in one service
  • Level 1 PCI DSS compliance
  • Native integration with the Keela donor management system

Payment Methods: Visa, Mastercard, American Express, ACH

Payout Timeline: Customizable disbursements; payments can be withdrawn nightly, weekly, or monthly.

Pricing: Uses Stripe and PayPal to process donations; transaction fees of 2.2% + $0.30

8. Dharma Merchant Services

Screenshot of the Dharma Merchant Services homepage, a nonprofit credit card processing option

Tool for: Nonprofits looking to simplify payments while keeping costs low.

Top Features: 

  • eCommerce integration
  • Option to add a donate button to your website
  • No cancellation fees

Payment Methods: Credit cards

Payout Timeline: 2 business days

Pricing: $15 per month fee, processing fees of 0.10% + $0.08 for storefront payments, and 0.10% + $0.11 for virtual payments

How to choose the right nonprofit payment platform

How can you determine which of these payment processors is right for your nonprofit? Follow these steps to narrow down your top options and choose the best system for long-term growth.

1. Consider your nonprofit’s size.

Often, choosing the right payment processor comes down to your nonprofit’s size. That’s because some fee structures work better for different-sized organizations. Here’s a breakdown of the structures that work best for large and small nonprofits:

  • Large nonprofits with more transactions: Some payment options offer lower fees for higher donation volumes, which can be helpful for larger organizations that process more gifts.
  • Small nonprofit with fewer transactions: A pay-as-you-go or flat-rate model works best for these organizations. These fee types are more predictable and cost-effective.

Carefully assess your nonprofit’s needs and compare fee structures to find the right fit for your fundraising efforts.

2. Assess integration needs.

Leveraging a payment processor that integrates with your other software solutions makes it easier to gather donor data and use it in future transactions. Plus, when your payment processor is visually similar to your online donation form and branded to your organization, you can reassure donors that they’re giving to the right organization.

Search for a payment processor that integrates with software tools like your:

These integrations will ensure seamless, secure data transfers and simplify your fundraising process.

Optimize your fundraising efforts with a donor management system and built-in payment processor. Download the donor management software buyer’s guide here.

3. Fundraising features for nonprofit payment processors.

Your payment processor can do much more than just manage financial transactions. Advanced systems, especially those built specifically for nonprofits, offer additional features to increase revenue and improve the payment experience. Look for features such as:

  • Recurring gifts.  Your payment processor should be able to accept both one-time and recurring donations. Donors should be able to turn their gift into a recurring payment with the click of a button.
  • Mobile-friendly interface. 57% of nonprofit website traffic comes from mobile devices. Look for a mobile-friendly payment processor that facilitates simple transactions on both mobile and desktop devices.
  • Online and in-person payments. Your payment processing platform should offer digital and in-person donation processing functionality. This ensures that you can easily gather donations during in-person experiences, like fundraising events.

Determine whether these features are built into the platform or if they’re available for an additional fee.

4. Seek out security credentials.

A secure payment process is critical to keep donor information safe and stored securely, build trust, and inspire repeat donations. Make sure the payment process you choose offers security measures like:

  • PCI-compliance. This means the payment tool complies with regulations set by the Payment Card Industry Security Standards Council. Requirements include installing a firewall system, encrypting data, protecting against malware, and following other security regulations.
  • Fraud monitoring tools. Your payment processor should leverage fraud monitoring tools to catch and evaluate suspicious activity. This includes machine learning algorithms that scan for unusual patterns and tools that verify that the donors’ CVV code and billing address match the information provided by their bank.
  • Regular software updates. Check the changelog for your top option to ensure the platform receives regular security updates and fixes. This includes minor bug fixes as well as larger core updates that keep the system fresh and reliable.

Request a demo for each of your top options and ask each representative to walk through their system’s security credentials. Ask plenty of questions to make sure you feel comfortable with your final choice.

5. Assess the level of customer support.

Your payment processing platform should offer access to an experienced support team that can answer your questions promptly. This is necessary to quickly address and resolve any payment issues and maintain donor satisfaction and trust.

The support team should be available via live chat, phone, or email and provide a wide variety of support services to handle different needs. For example, Bloomerang’s support team provides implementation and onboarding support, coaching, and consulting services based on the level of support you require.

6. Read reviews of nonprofit payment processors.

Use third-party software review aggregators to get insight from real customers. Search for your top payment processing options on platforms like G2 and Capterra. These resources will provide an unbiased look at each payment processor and insights into what customers like or dislike about the systems.

7. Consider generational giving preferences.

Offering a variety of payment methods beyond credit card processing is essential to appealing to different generational preferences.

According to Nonprofit Tech for Good, these are the preferred giving methods of each generation:

Chart explaining generational giving preferences (explained in the text below) 

  • Silent Generation (1925-1945): Prefer communicating and donating via direct mail and phone calls
  • Baby Boomers (1946-1964) and Gen X (1965-1980): Prefer communicating via calls, text, email, or social media and giving online
  • Millennials (1980-1996) and Gen Z (1997-2012): Prefer communicating via text and social media and donating online

Offering in-person, direct mail, and online payment methods is important to connect with all generations. When determining what payment processor to invest in, find a solution that aligns with your supporters’ preferences.

8. Choose a solution with your team’s input.

Consult with your nonprofit’s fundraising team to gather their input and make your final payment processing decision. Gathering feedback from fundraising team members will help you choose a platform that works best for your unique donor base. Plus, they’ll be able to provide insight into which options work best based on your donors’ demographics and giving preferences.

Additional nonprofit credit card processing resources

Careful research is required to find the right credit card processing option that will support your nonprofit’s long-term goals. If you need more support to find the right choice and understand how payment processing works in a fundraising context, start with these additional resources:

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The power of new donation methods in connecting with the next generation https://bloomerang.com/blog/the-power-of-new-donation-methods-in-connecting-with-the-next-generation/ https://bloomerang.com/blog/the-power-of-new-donation-methods-in-connecting-with-the-next-generation/#comments Fri, 03 May 2024 14:00:00 +0000 https://bloomerang2dev.wpengine.com/?p=113758 The fundraising landscape is changing, and to keep up, we need to adapt our strategies. One way to do that? Embrace new donation payment methods like QR codes and Tap to Pay, which are bridging the gap with younger donors in incredible ways. Let’s take a look at how these new methods are revolutionizing donor […]

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The fundraising landscape is changing, and to keep up, we need to adapt our strategies. One way to do that? Embrace new donation payment methods like QR codes and Tap to Pay, which are bridging the gap with younger donors in incredible ways. Let’s take a look at how these new methods are revolutionizing donor engagement.

Younger donors are all about convenience, and they’re not shy about using new tech to support their favorite causes. Using Tap to Pay and QR codes, nonprofits can craft seamless, interactive donation experiences that captivate younger donors and make giving easier than ever. A quick tap or scan, and they’re right where they need to be to contribute.

In partnership with Dynata, we surveyed 1,000 U.S.-based adults (18+) in February 2024 to uncover their thoughts and preferences around QR codes, Tap to Pay, and other digital donation methods.

New Donation Methods In Connecting With The Next Generation

You can take advantage of these new donation methods to streamline your donation process, deliver instant access to essential information, and foster transparency and connection with your supporters. It’s a surefire way to keep your organization relevant and ready for the future.

You can view and download the stand-alone .png version of the infographic here.

How have new donation methods impacted your fundraising? We invite you to share your thoughts and experiences on QR code usage for donations in the comments below.

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Make giving easier for your donors in 2024 https://bloomerang.com/blog/make-giving-easier-for-your-donors-in-2024/ https://bloomerang.com/blog/make-giving-easier-for-your-donors-in-2024/#respond Tue, 05 Mar 2024 10:00:00 +0000 https://bloomerang2dev.wpengine.com/?p=110479 Recurring payments, donor portals, contactless payments, donor-covered fees. What do all of these fundraising tools have in common? The donor experience is central. As a fundraising organization, you work day in and day out to inspire your donors to open their hearts and wallets for your cause. You spend time prospecting, building the relationship with […]

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Recurring payments, donor portals, contactless payments, donor-covered fees. What do all of these fundraising tools have in common? The donor experience is central.

As a fundraising organization, you work day in and day out to inspire your donors to open their hearts and wallets for your cause. You spend time prospecting, building the relationship with intentional cultivation, and preparing for the actual ask.

When that time comes, you want the transition of funds to be as easy as possible for the donor. The easier it is for the donor to support your organization, the more donations your organization will receive.

Picture this: Your organization has worked tirelessly to prepare for your annual gala over the last three months. You and four other major gift officers are soliciting donations from your major donors throughout the event. The donor you’re working with is prepared to make a five-figure donation to your organization, but your card swiper isn’t working, and—not to add more pressure—another major gift officer is waiting for it. You’ll need to come back to that donor with a written pledge form and collect the donation later, and your colleague will need to do the same.

Not only was your donor unable to donate during their peak moment of inspiration, but it was a missed opportunity—for you and for your organization. That single technical issue you experienced at the gala could potentially trigger a domino effect:

  • Reducing the number of solicitations you can make.
  • Significantly decreasing the overall amount of funds your organization raises.
  • Directly impacting the effectiveness of your mission.

It’s crucial to address these issues to maximize the success of your fundraising efforts.

When evaluating the donation process at your organization, always consider keeping the donor’s experience at the center. Using Bloomerang Tap to Pay in the Bloomerang Mobile App makes the donor experience at in-person events seamless: multiple donors can tap to donate on numerous devices at the same time. The donor just needs a WiFi-enabled card they can hold to your organization’s device to process the payment. The donor can even use their phone if they don’t have a credit card handy.

Contactless payments means there’s no need to handle anyone’s personal devices or for your donors to share their payment details, making this the most secure way to process donations in person.

But, the donor experience encompasses more than in-person events. And as fundraisers, we need to consider the full spectrum.

Does your online giving form encourage donors to set up recurring donations? Does the form offer an option to select the start date or the frequency of their recurring donation? How about managing that recurring donation?

Whether you’re ordering a pizza, booking your next vacation, or purchasing a prefabricated house on Amazon (yes, you really can do that), all of these actions have something in common: you can do them online—by yourself—at any time.

Most donors prefer to give online—regardless of their generation—with younger generations particularly influenced by social media posts. You can link these social media posts to your online campaign pages, cutting the time between receiving the appeal and donating versus other solicitation types like direct mail and personal asks.

When giving, donors today expect a personalized experience they can complete as quickly as purchasing on Amazon. Does your tool today adapt to meet your donors where they are—for example, with suggested donation amounts based on their likelihood to give? Personalize the experience by prepopulating their information? Or enable donors to skip the check-out and just give in two clicks—like they can on their favorite shopping apps?

Providing donors with the same ease to contribute to your cause can be just as simple. Online giving tools make it easy for your organization to create personalized experiences that make your donors feel like superheroes. Now, you can empower donors to give in seconds, creating their own logins to make future one-time gifts or set up and manage recurring donations.

Donors can manage payment methods, upgrade their giving, and download tax summaries independently. This not only gives donors a sense of ease and autonomy, but it significantly reduces administrative time for your organization to manage ongoing commitments and eliminates having to chase down a donor when a card expires or declines.

When your donors give through Bloomerang + Qgiv, they’ll have the tools to make donations the way they want.

Credit Card? Check.

ACH? Check.

Apple Pay? Check.

PayPal? Check.

Venmo? Check.

Tap to Pay? Check.

According to the Fundraising Effectiveness Project Q1 2023 report, the nonprofit sector is showing decreases in all areas: major donors, total dollars, and new donors. That means it’s more important than ever for giving to be easy, manageable, and flexible. Organizations like yours are already facing hardships when it comes to funding. Your giving tools don’t have to be one of them.

Are there any contactless payments that you would add to this list? 

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The Future Of Giving: Strategies For Modern Philanthropy https://bloomerang.com/blog/the-future-of-giving-strategies-for-modern-philanthropy/ https://bloomerang.com/blog/the-future-of-giving-strategies-for-modern-philanthropy/#respond Mon, 19 Feb 2024 10:00:00 +0000 https://bloomerang2dev.wpengine.com/?p=109193 In the world of philanthropy, the intersection of technology and generosity has ushered in a new era of giving. The transformation in how we support causes close to our hearts is not just a fleeting trend but a fundamental shift toward a more inclusive, efficient, and impactful form of philanthropy. The evolving landscape of philanthropy […]

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In the world of philanthropy, the intersection of technology and generosity has ushered in a new era of giving. The transformation in how we support causes close to our hearts is not just a fleeting trend but a fundamental shift toward a more inclusive, efficient, and impactful form of philanthropy.

The evolving landscape of philanthropy

Gone are the days when cash was king in the realm of donations. A significant 35% decrease in traditional cash donations since 2017 marks a pivotal change in donor behavior, shifting towards digital avenues for their philanthropic endeavors. This transition is fueled mainly by the digital revolution, which simplified transactions and made giving a seamless experience. It’s not just about convenience; it’s about connecting with a generation that relies on and values the integration of technology into all facets of their lives.

Millennials and Gen Z are leading this transformation. With a combined buying power exceeding $350 billion, their approach to philanthropy extends beyond financial contributions. They’re champions of online giving, using digital platforms to advocate, share, and crowdsource funds for causes they believe in. Their active engagement and preference for organizations that offer transparency and demonstrate real impact set them apart as the new driving force in charitable giving.

Digital wallets: Transforming philanthropic engagement

The increasing adoption of digital wallets and online payments represents more than just a technological advancement; for nonprofits, it signifies a shift in how donors express their generosity. Platforms like PayPal, Venmo, Apple Pay, and Google Pay have not only increased the likelihood of donations but encouraged more frequent contributions. The key lies in reducing transactional friction and making the act of giving as effortless as possible while ensuring donor security.

This shift towards digital payments mirrors broader consumer behavior, challenging nonprofits to adapt or risk becoming obsolete. By embracing these modern payment methods, organizations like yours can meet donors where they are, offering the convenience and security they’ve come to expect in all aspects of their digital lives.

The impact of social media and crowdfunding

Social media and crowdfunding platforms have had an undeniable influence on philanthropy. These tools have democratized giving, enabling individuals to support and amplify causes globally. The strength of these platforms lies in their ability to foster community, engagement, and rapid mobilization for causes, making every donor an integral part of a larger narrative. Moreover, they enhance transparency and trust, enabling organizations to build and steward long-term relationships with their supporters.

Adapting to stay relevant

To thrive in this new era, adapting to digital payment methods is not optional—it’s essential. Aligning with your donors’ expectations for convenience and security is crucial for attracting and retaining their support. More importantly, incorporating technology into the process of managing your donor relationships will deliver essential data insights, enabling your organization to customize its approaches and engage more successfully with your supporters.

Guidance for implementing modern digital payment options

Here’s a step-by-step guide to integrating modern, digital payment options into your fundraising strategies:

  • Understand the impact. Recognize that adopting digital payment methods like digital wallets can significantly increase your donations. Statistics show that PayPal users are almost four times more likely to donate when PayPal is accepted, and donation conversions can increase by over 32% with the availability of digital payment options.
  • Enhance event fundraising. Incorporate contactless payment methods in your fundraising events to attract Millennial and Gen Z supporters. Options like Apple Pay or Google Pay make it easy for donors to contribute with a simple tap of their smartphones, enhancing their engagement and boosting donations​​.
  • Select the right payment processor. Choose a payment processor that integrates digital wallets and offers contactless capabilities. Look for solutions tailored to nonprofits like yours that deliver lower fees, better support, and comprehensive features like donation forms, event tools, manual addition of offline donations, and transparent reporting for digital wallet transactions​​.
  • Embrace mobile-friendly solutions. To attract and retain next-gen donors, prioritize mobile-friendly, digital payment options. This approach not only caters to modern donors’ preferences but also helps lower administrative costs, enabling you to allocate more funds to your mission​​.
  • Ensure financial stability and growth. Adopting digital payment methods is crucial for your organization’s financial stability and growth. It’s not just about convenience; it’s about continuing to make a positive impact and moving your mission forward in the digital age​​.

By following these steps, your nonprofit can successfully implement modern digital payment options, enhance donor experience, increase donations, and stay relevant in today’s evolving fundraising landscape.

The last word

The future of giving is vibrant, driven by technological innovation and the changing preferences of donors. By understanding and embracing these shifts, your nonprofit can stay relevant while expanding its impact. By offering many ways to contribute to your cause, you can help your potential donors make every donation, no matter the size, part of a greater effort to make the world a better place. As we continue to navigate this new era of giving, the potential for positive change is boundless, limited only by our willingness to adapt and embrace the possibilities ahead.

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Adopting modern payment methods to engage and keep a new generation of donors https://bloomerang.com/blog/adopting-modern-payment-methods-to-engage-and-keep-a-new-generation-of-donors/ https://bloomerang.com/blog/adopting-modern-payment-methods-to-engage-and-keep-a-new-generation-of-donors/#respond Tue, 19 Dec 2023 17:00:00 +0000 https://bloomerang2dev.wpengine.com/?p=107039 In today’s rapidly evolving world of nonprofit fundraising, nonprofits must adapt to changing donor preferences and behaviors. Traditional methods of receiving cash donations have seen a significant drop in recent years, with 70% of charities reporting a decline in cash contributions. This decline is further underscored by the fact that only 23% of donors used […]

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In today’s rapidly evolving world of nonprofit fundraising, nonprofits must adapt to changing donor preferences and behaviors. Traditional methods of receiving cash donations have seen a significant drop in recent years, with 70% of charities reporting a decline in cash contributions. This decline is further underscored by the fact that only 23% of donors used cash for contributions in 2022, marking a substantial 35% decrease from 2017.

One reason behind this transformation is the rise of Millennials and Generation Z as donors—who not only are generously contributing but also are driving a shift towards modern payment methods like contactless payments.

The generosity of Millennials and Gen Z: A shaping force

Millennials and Gen Z are not just the future of charitable giving; they are actively shaping it today. Together, they wield an impressive $350 billion in buying power—yes, you read that correctly! And, these cohorts are tech-savvy, deeply committed to making a difference with social causes, and hold a significant amount of generational wealth that they are eager to give back. 84% of Millennials give to charity, donating an annual average of $481 across more than 3 organizations, while 76% of Gen Zers give online. As these cohorts mobilize to support causes they believe in, they’re becoming highly-engaged advocates, sharing information on social media, and crowdfunding donations.

Digital wallets: The preferred choice for next-gen donors

Millennial and Gen Z donors today are looking for a giving experience that aligns with their online shopping habits. That means they expect to have access to modern payment methods and digital wallet options like PayPal, Venmo, Apple Pay, and GooglePay. Making these digital payment options available has been shown to reduce donor checkout friction, build trust, and increase unplanned gifts by 32% and repeat donations by 79%.

That’s especially important when considering appeals to next-gen donors. As of 2023, approximately two-thirds of Millennials and Gen Z individuals have embraced digital wallets. And 78% of Gen Zers would reconsider patronizing a business that doesn’t accept digital wallet payments. But there’s no need to be concerned about leaving potential donors behind as Gen Xers are also on board, with more than half reporting that they use digital wallets more than traditional payment methods.

Always be in a position to say “Yes” to potential gifts

One of the significant advantages of embracing modern payment methods like digital wallets is that you’re more likely to receive donations. PayPal users are almost four times more likely to donate when PayPal is accepted, and donation conversions increase by over 32% when digital payment options are available. Moreover, repeat donations can surge by 76% when using PayPal.

Venmo, with more than 80 million users, offers a familiar and trusted platform for next-gen donors, who donate at more than twice the rate of non-Venmo users.

When donors find it effortless to contribute, they’re more likely to make a gift. By providing a seamless donor experience with multiple payment options, you’re more likely to see an increase in the generosity of your supporters.

Engaging next-gen donors at events using contactless payments

Fundraising events play a key role in nonprofit fundraising efforts. A significant number of attendees are often Millennials and Gen Z supporters. To cater to their tech-savvy preferences, consider integrating contactless payment methods like Bloomerang Tap to Pay. Your donors can easily contribute using Apple Pay or Google Pay with a simple tap of their smartphones. By offering a seamless way for next-gen donors to give while they’re inspired by your mission, you can boost donations.

Take advantage of next-gen payment options with Bloomerang

Digital wallets and Tap to Pay are now an integral part of Bloomerang Payments, the payment processor built exclusively for nonprofits. Deliver a better giving experience for your donors, with lower fees, better support, and no need to use a third-party provider. Bloomerang Digital Wallet options not only enhance the giving experience for donors but also make it easy for your organization to address next-gen giving preferences. Bloomerang Digital Wallet offers the ability for nonprofits to:

  • Accept expanded payment options. Donors using Bloomerang fundraising tools, like donation forms, donation pages, events, and crowdfunding pages, will now see PayPal, Venmo, ApplePay, GooglePay, and Bloomerang Tap to Pay as convenient payment choices.
  • Add offline donations. You can manually add offline donations processed through digital wallet platforms, including PayPal, Venmo, ApplePay, and GooglePay.
  • Make the most of transparent reporting. Gain valuable insights into your fundraising efforts by tracking funds raised through digital wallet transactions.

Now’s the time to step into the future of giving

To stay relevant in today’s evolving fundraising landscape, it’s essential to adapt to the preferences of the donors of tomorrow. Consider embracing next-generation payment methods through Bloomerang Payments to:

  • Effortlessly grow donations: Attract and engage new donors with mobile-friendly options.
  • Save money for where it matters most: Streamline your operations and reduce administrative costs.
  • Set up your organization for success: Stay ahead of the curve and build a strong donor base for the future.

Incorporating these modern payment methods isn’t just about convenience; it’s about securing your organization’s financial stability and ensuring you can continue to make a positive impact on the causes you’re passionate about. So, step into the future with Bloomerang Payments and watch your donations soar while you make giving a seamless and enjoyable experience for your donors. A bright future awaits.

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Introducing The New PayPal And Venmo Integration With Bloomerang Payments https://bloomerang.com/blog/introducing-the-new-paypal-and-venmo-integration-with-bloomerang-payments/ https://bloomerang.com/blog/introducing-the-new-paypal-and-venmo-integration-with-bloomerang-payments/#comments Tue, 12 Dec 2023 15:00:00 +0000 https://bloomerang2dev.wpengine.com/?p=106664 Welcome to the new era of nonprofit fundraising—where technology meets generosity. Today, we’re thrilled to introduce a groundbreaking integration that is set to redefine your fundraising experience: PayPal and Venmo are now part of Bloomerang Payments! This integration not only broadens your digital payment capabilities, but by offering a wider range of digital wallet options […]

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Welcome to the new era of nonprofit fundraising—where technology meets generosity. Today, we’re thrilled to introduce a groundbreaking integration that is set to redefine your fundraising experience: PayPal and Venmo are now part of Bloomerang Payments!

This integration not only broadens your digital payment capabilities, but by offering a wider range of digital wallet options to enhance your fundraising strategy, it also expands contactless giving options, marking another step in adapting to modern donation preferences.

The rise of digital wallets in nonprofit fundraising

The past 24 months have witnessed a significant shift towards digital wallet adoption, accelerated by the COVID-19 pandemic’s impact on traditional donation methods. With 43% of the global population now using digital wallets, a number expected to reach 60% by 2026, it’s clear that nonprofits need to adapt to these changing donor preferences. Digital wallets like PayPal and Venmo offer speed, convenience, and trust, factors that are increasingly important to today’s donors.

Embracing change with Bloomerang Payments

Recognizing the escalating demand for PayPal and Venmo among donors, we’ve integrated these digital wallets into Bloomerang Payments. Why these platforms?

Integrating PayPal and Venmo into Bloomerang Payments is more than just adding payment options. It’s about enhancing the donor experience and meeting donors where they are.

For example, PayPal has been shown to help increase donation conversion by an average of 32%1 and repeat donations by 79% (vs. typical checkout).2 52% of U.S. donors prefer PayPal for repeat donations because they trust it3, and 37% of PayPal users donate more when using this method.4

Venmo, with its significant user base, offers a familiar and trusted platform for next-gen donors, who donate 2x more than non-Venmo users.5

Expanding donor demographics with Venmo

While integrating PayPal and Venmo is primarily about helping to diversify digital wallet options for your donors, it also presents an opportunity to engage with Millennial and Gen Z donors. Venmo’s largest user age group is in the 25-34 range, so this addition provides another way for nonprofits to connect with a more digitally-savvy audience. And it aligns with the growing trend of younger individuals preferring mobile and online payment solutions for their transactions—including charitable giving.

Using PayPal and Venmo with Bloomerang

You can enable giving through PayPal and Venmo—as well as with Apple Pay and Google Pay—using Bloomerang Payments. You can include all of these payment options on mobile-friendly donation forms and pages, events, Text to Donate, and crowdfunding tools available through Bloomerang Online Giving Tools. Beyond consolidating donation reports and tracking digital wallet donations like Venmo on a donor’s profile, your nonprofit can boost fundraising this season by giving donors the option to pay processing fees.

Step into the future with Bloomerang Payments

Get ready to transform your fundraising strategy with Bloomerang Payments. By integrating PayPal and Venmo, along with offering contactless giving options, you’re not just keeping up with technology—you’re staying ahead of it. Embrace this opportunity to enhance donor satisfaction, streamline your donation process, and expand your donor base.

Join us on this innovative journey as we continue to support your efforts in raising more funds and adapting to the ever-evolving landscape of nonprofit fundraising. With Bloomerang Payments, you’re equipped to meet the future of giving—today.

 

1 Nielsen, commissioned by PayPal, April 2022. Nielsen Media Behavioral Panel of US with 590 Non-Profit desktop donation transactions from January 2021 to December 2021. *Checkout conversion measured from the point at which customer starts to pay for donation.

2 Nielsen, commissioned by PayPal, April 2022. Nielsen Media Behavioral Panel of US with 590 Non-Profit desktop donation transactions from January 2021 to December 2021.

3 Nielsen, commissioned by PayPal, April 2022. Nielsen Media Attitudinal Survey of US (January 2022) with 400 recent donations (past 3 months) to Non-Profit organizations, including 200 PayPal donations & 200 non-PayPal donations.‘Typical Checkout’ includes other mobile waller options, credit/debit cards, buy now/pay later, prepaid/gift cards, cryptocurrency, and more.

4 Logica Research, Commissioned by PayPal, March23-April 2, 2021. Logica Research conducted an online survey averaged 10 minutes among a sample of 4,306 PayPal user respondents from four countries (U.S., Canada, Australia, and U.K.) who made a monetary donation to a non-profit PayPal merchant. N=1029.

5 Edison Trends, commissioned by PayPal, April 2020 to March 2021. Edison Trends conducted a behavioral panel of email receipts from 306,939 US consumers and 3.4+ M purchases at a vertical level between Pay with Venmo and Non-Venmo users during a 12-month period.

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Tap Into The Future: Transforming Nonprofit Donations With Bloomerang Tap to Pay https://bloomerang.com/blog/tap-into-the-future-transforming-nonprofit-donations-with-bloomerang-tap-to-pay/ https://bloomerang.com/blog/tap-into-the-future-transforming-nonprofit-donations-with-bloomerang-tap-to-pay/#respond Thu, 09 Nov 2023 15:00:00 +0000 https://bloomerang2dev.wpengine.com/?p=103432 Ready to bring your fundraising into the digital age? Welcome to Bloomerang Tap to Pay, a fresh way to boost your event fundraising and build stronger connections with your donors. In a world where cash is no longer king, our infographic will reveal the compelling numbers behind this shift. You’ll see why now’s the time […]

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Ready to bring your fundraising into the digital age?

Welcome to Bloomerang Tap to Pay, a fresh way to boost your event fundraising and build stronger connections with your donors. In a world where cash is no longer king, our infographic will reveal the compelling numbers behind this shift. You’ll see why now’s the time to adopt Tap to Pay, as today’s donors are reaching for their smartphones and credit cards instead of cash. With Bloomerang Tap to Pay, we’re excited to help you tap into this new era of modern fundraising and offer your supporters a convenient, contactless way to contribute to your cause.

Bloomerang Tap to Pay

The numbers tell the story: Tap to Pay is an important new payment method that’s reshaping the way nonprofits like yours approach charitable giving. It’s not just about making transactions faster; it’s about meeting donors where they are and providing them with the convenience and security they expect. As the world shifts rapidly towards digital solutions, Bloomerang Tap to Pay ensures that your nonprofit stays ahead of the curve, increases revenue, and enhances donor engagement and retention.

To tap into the next-gen of payment options, download the Bloomerang Mobile App from the App Store or Google Play and start tapping into the future of donations today!

How does your organization attract and engage next-gen donors

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The future of nonprofit fundraising in human services: embracing next-gen payment options to attract and retain next-gen donors https://bloomerang.com/blog/embracing-next-gen-payments-to-attract-and-retain-next-gen-donors/ https://bloomerang.com/blog/embracing-next-gen-payments-to-attract-and-retain-next-gen-donors/#respond Mon, 30 Oct 2023 18:00:00 +0000 https://bloomerang2dev.wpengine.com/?p=104712 In the realm of human services nonprofits, evolving to meet the needs of those served means also adapting to the changing dynamics of donor behavior. As services are provided to some of the most vulnerable populations, there’s a need to ensure consistent funding. Traditional methods of receiving cash donations have seen a significant drop in […]

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In the realm of human services nonprofits, evolving to meet the needs of those served means also adapting to the changing dynamics of donor behavior. As services are provided to some of the most vulnerable populations, there’s a need to ensure consistent funding. Traditional methods of receiving cash donations have seen a significant drop in recent years, with 70% of charities reporting a decline in cash contributions. This decline is further underscored by the fact that only 23% of donors used cash for contributions in 2022, marking a substantial 35% decrease from 2017.

One reason behind this transformation? The rise of Millennials and Generation Z as donors—who not only are generously contributing but also are driving a shift towards modern payment methods. Their giving patterns are shaping the future of fundraising for human services.

The generosity of Millennials and Gen Z in human services

Millennials and Gen Z are not just the future of charitable giving; they are actively influencing human services organizations today. Together, they wield an impressive $350 billion in buying power—yes, you read that correctly! And these cohorts are tech savvy and socially conscious, with deep commitments to causes like welfare, healthcare, housing, and disaster relief. And they hold a significant amount of generational wealth that they are eager to give back. 84% of Millennials give to charity, donating an annual average of $481 across more than three organizations, while 76% of Gen Zers give online. As these cohorts mobilize to support causes they believe in, they’re becoming highly-engaged advocates, sharing information on social media, and crowdfunding donations.

Digital wallets: Meeting the needs of human services supporters

Millennial and Gen Z donors today are looking for a giving experience that aligns with their online shopping habits. That means they expect to have access to modern payment methods and digital wallet options like Apple Pay and GooglePay. When Human Services organizations make digital payment options available, it’s been shown to reduce donor checkout friction, build trust, and increase unplanned gifts by 32% and repeat donations by 79%.

That’s especially important when considering appeals to attract and retain next-gen donors. As of 2023, approximately two-thirds of Millennials and Gen Z individuals have embraced digital wallets. And if they find an organization that doesn’t accommodate these preferences? 78% of Gen Zers stop their support. No need to be concerned about leaving potential donors behind as Gen Xers are also on board, with more than half reporting that they prefer digital wallets over traditional payment methods.

Always be ready to say “yes”: Embracing modern payment solutions

One of the significant advantages of embracing modern payment methods like digital wallets is that you’re more likely to receive donations. PayPal users are almost four times more likely to donate when PayPal is accepted, and donation conversions increase by over 32% when digital payment options are available. Moreover, repeat donations can surge by 76% when using PayPal.

The ease of donation significantly affects donor behavior. When donors find it effortless to contribute, they’re more likely to make a gift. By providing a seamless donor experience with multiple payment options, you’re more likely to see an increase in the generosity of your supporters.

Contactless payments at human services events: Attract and retain next-gen donors

Fundraising events for human services—which often cater to vulnerable populations—play a key role in attracting a significant number of Millennial and Gen Z supporters. To cater to their tech-savvy preferences, consider integrating contactless payment methods like Bloomerang Tap to Pay. Your donors can easily contribute using Apple Pay or Google Pay with a simple tap of their smartphones and instantly support initiatives like homeless shelters, medical aid, or community programs. In this way, you enhance their engagement and boost donations while they’re invested in the spirit of your mission.

Bloomerang Payments for human services nonprofits

Bloomerang Payments, the payment processor built exclusively for nonprofits, now incorporates digital wallets and Tap to Pay. Make sure your organization is set to deliver a better giving experience for your donors, with lower fees, better support, and no need to use a third-party provider. Bloomerang digital wallet options not only enhance the giving experience for donors but also make it easy for your organization to meet the preferences of next-gen donors. Features include expanded payment options through tools like donation forms and events, manual additions of offline donations, and transparent reporting for digital wallet transactions

Now’s the time to step into the future of giving

To stay relevant in today’s evolving fundraising landscape, it’s essential to adapt to the preferences of the donors of tomorrow. Consider embracing next-generation payment methods through Bloomerang Payments to:

  • Attract and retain next-gen donors with mobile-friendly, digital options.
  • Maximize the funds you can allocate to supporting your mission with lower administrative costs.
  • Stay ahead of the curve and build a strong donor base for the future.

Incorporating digital payment methods isn’t just about convenience; it’s about securing your organization’s financial stability and ensuring you can continue to make a positive impact and move your mission forward. So, step into the future with Bloomerang Payments and embrace the next generation of givers by delivering a seamless and enjoyable experience. A bright future awaits.

What are some strategies you use to attract and retain next-gen donors?

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What’s a GoFundMe Tip & who’s receiving it? https://bloomerang.com/blog/gofundme-asks-donors-to-tip-them-whats-up-with-that/ https://bloomerang.com/blog/gofundme-asks-donors-to-tip-them-whats-up-with-that/#comments Mon, 30 Oct 2023 09:00:00 +0000 https://bloomerang2dev.wpengine.com/?p=103575 In the world of online fundraising, GoFundMe has become a household name for individuals, communities, and nonprofits. While most are familiar with the practice of donating to causes they care about on the platform, less may be aware of the tip feature built into the platform, and even fewer may know why it’s there in […]

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In the world of online fundraising, GoFundMe has become a household name for individuals, communities, and nonprofits. While most are familiar with the practice of donating to causes they care about on the platform, less may be aware of the tip feature built into the platform, and even fewer may know why it’s there in the first place.

What is a GoFundMe tip?

To put it simply, a GoFundMe tip is a voluntary additional contribution aimed at covering the platform’s operating costs.

Tipping on GoFundMe is different from the type of tip option you’d see on a nonprofit’s website. Those extra contributions are generally used to cover transactional fees, not operational expenses for the organization as a whole. GoFundMe tips have nothing to do with transactional costs. Those are covered by taking out 2.9% + 30 cents from each donation. Their tips are solely to help support the platform, and, as they put it, “offer powerful and trusted fundraising tools, customer support, and a global team of Trust & Safety experts.”

So, what does tipping actually look like on GoFundMe? Once you’ve entered the “Donate Now” page, you’ll see a sliding scale to adjust the percentage you’d like to tip on top of your donation. It’s important to note that if a donor does not want to tip, they will have to adjust the scale to zero as it’s automatically set to 15%. While tipping is voluntary, donors should be aware that it is an opt-out feature, not an opt-in.

Why does GoFundMe want people to tip?

GoFundMe introduced the tipping model back in 2017 so they could make the platform “free for people who start a fundraiser.”

But GoFundMe was around years before 2017, so why the sudden change? Before that point, GoFundMe charged their fundraisers a 5% platform fee to set up their campaign. Now, by asking donors for tips, GoFundMe is free for anyone to start a fundraiser. It’s important to remember that GoFundMe is a for-profit organization, so the tipping model most likely wouldn’t have been introduced if it wasn’t deemed to be a better business model than the 5% fee.

So, exactly how much money does GoFundMe make from donations? If you were to give $100, GoFundMe would take $2.90 plus 30 cents for a total of $3.20. Meaning $96.80 would go to the fundraiser. If you donate $5,000 they’d be taking $145.30, leaving the fundraiser with $4,854.70. Now, let’s say you don’t opt-out of the automatic 15% tip. For the $5,000 donation, GoFundMe will walk away with $750.00—$895.30 if you include what they’ve taken from the donation itself.

Here’s a chart for comparison:

Donation Amount GoFundMe Fee (2.9% + $0.30) Optional 15% Tip Total GoFundMe Earnings Amount to Fundraiser
$100.00 $3.20 None (opted out) $3.20 $96.80
$5,000.00 $145.30 None (opted out) $145.30 $4,854.70
$5,000.00 $145.30 $750.00 (15% tip) $895.30 $4,104.70

Are you required to tip on GoFundMe?

Tipping is absolutely voluntary on GoFundMe, and if an unintentional tip is made—which is wholly possible, given that you must opt-out of the option—GoFundMe states the donor may request a refund.

However, GoFundMe does push donors to leave a tip through their verbiage. For example, on their website they explain that “by leaving a voluntary tip, you’re helping us to do more good in the world, and your generosity helps us provide a safe and secure experience for you and others in our community.” When phrased like that, one might feel a bit bad choosing to slide that tip scale to zero. Take a little stroll through Google and you’ll see this is why some people feel like the tip isn’t quite as voluntary as GoFundMe puts it.

This is where the discussion of where the burden of operating costs should be placed comes up. Is it the sole responsibility of the organizer? Or does it make sense for it to be included in donations? It’s a nuanced question that doesn’t have a simple answer, and it’s one your nonprofit will need to answer for itself.

What happens to tips on unclaimed GoFundMe donation pages?

First, let’s answer “What are unclaimed donation pages?”

Unclaimed donation pages on GoFundMe refer to fundraising campaigns that have been automatically created by GoFundMe without the nonprofit’s knowledge. So, the unclaimed pages have not been configured or edited to the nonprofit’s desired settings.

NOTE: October 23, 2025 GoFundMe announced that automatically generated donation pages would be opt-in only going forward and that unverified or unclaimed pages would be removed or de-indexed from search.

You can read more about the update here: 

However, existing unclaimed pages may still be active.

Pages automatically generated by GoFundMe pose these issues:

  • Lack of branding specific to the nonprofit
  • No access to donor information

This also means the person or group who created the fundraising campaign has not taken control of the page to manage the funds or communicate with donors. All the page settings are set to default.

While GoFundMe stated October 23, 2025 that they would make tipping suggestions clearer for donors moving forward, it is still possible that tipping may be recommended on unclaimed pages.

What happens to the tip on unclaimed pages?

This tipping could mean that about 15-17% of the donor’s funds are going to GoFundMe operating costs, not to the nonprofit.

This situation highlights the importance of clear communication and transparency so donors understand how their contributions, especially tips, are used if the fundraiser remains inactive or unclaimed.

Donors should understand how their voluntary tips are used—especially when fundraisers remain inactive or unclaimed. At Bloomerang, we emphasize that building and maintaining donor trust requires:

  • Providing straightforward information about fees
  • Explaining fund allocation clearly
  • Giving account holders full control of their donation forms

When donors feel confident that their generosity directly supports the causes they care about, it fosters:

  1. Stronger relationships
  2. A healthier giving community
  3. More resources for your mission to grow

If you believe your nonprofit may have unclaimed donation pages, check out our resources on how to claim them:

What if GoFundMe isn’t the right choice for me?

Let’s say you’ve looked at the pros and cons of GoFundMe and have made the personal choice that it’s just not the right fit for your needs. What then?

Luckily, GoFundMe isn’t alone in the online fundraising sphere, there are plenty of other options for your nonprofit.

  • Bloomerang Fundraising offers unlimited donation forms within our fundraising platform. Our software puts a focus on donor experience, ensuring a quick and easy giving process. With the Gift Assist feature, donors can choose to cover transactional fees.
  • Kickstarter, primarily known for crowdfunding creative projects, also includes an optional tip feature during the checkout process. Backers can choose to add a tip to their pledge to support Kickstarter.
  • Indiegogo offers backers the option to “tip” the platform when making a contribution to a campaign to cover Indiegogo’s operational expenses.
  • Patreon focuses on ongoing support for content creators, and offers a similar optional tip feature. Patrons can choose to tip to Patreon to support the platform in addition to their regular support for creators.
  • Buy Me a Coffee enables supporters to “buy a coffee” for creators, and part of the contribution may go to the platform itself.
  • Ko-fi (similar to Buy Me a Coffee) enables supporters to leave an optional tip for Ko-fi when making a contribution.

Final thoughts

From the non-exhaustive list above, it’s clear that GoFundMe is not alone in their tipping model. At the end of the day, companies do need to make money, whether that be to cover operating expenses, transaction fees, or the like. Maybe GoFundMe tips make perfect sense to you, maybe they put you off. There’s no wrong answer. The world of crowdfunding is expansive and the most important thing is to choose a platform that fits your needs.

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What Do Donors And Nonprofits Think Of Crowdfunding Tipping? https://bloomerang.com/blog/what-do-donors-and-nonprofits-think-of-crowdfunding-tipping/ https://bloomerang.com/blog/what-do-donors-and-nonprofits-think-of-crowdfunding-tipping/#respond Fri, 27 Oct 2023 14:00:00 +0000 https://bloomerang2dev.wpengine.com/?p=103958 Crowdfunding platforms collect data and feedback from users to refine their models and policies. This feedback influences how they implement tipping and other features, but they don’t share that data publicly; it’s proprietary to the specific platform. Independent researchers have also conducted a number of studies to understand donor attitudes and behaviors regarding crowdfunding tipping […]

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Crowdfunding platforms collect data and feedback from users to refine their models and policies. This feedback influences how they implement tipping and other features, but they don’t share that data publicly; it’s proprietary to the specific platform. Independent researchers have also conducted a number of studies to understand donor attitudes and behaviors regarding crowdfunding tipping or adding optional contributions when donating on crowdfunding platforms. If you’re new to the concept of tipping, check out our post on this subject.

This blog post compiles findings and insights from 100 donors and nonprofits, a decent sample size of participants spread throughout the U.S. While it’s not deep research it’s more than has been shared publicly to-date on this issue.

Donation-based crowdfunding—vs general commercial crowdfunding—aims to collect revenue through the Internet for charitable reasons (Choy and Schlagwein, 2016). Internet-based crowdfunding platforms allow the initiators to reach large numbers of people (Gerber et al., 2012). In general, a charitable crowdfunding project involves three parties: the project initiator, who launches a project to be funded; supporters, whose donations and sharing support the project; and platforms like GoFundMe that bring project initiators and supporters together (Liu et al., 2018).

Donor views

Here are some of the thoughts that both crowdfunding donors and the nonprofits who interact with them have shared with me:

  1. Mixed attitudes: Donors have mixed attitudes towards tipping. Some donors appreciate the option to tip because they see it as a way to support their cause and ensure campaign organizers can maximize their donations. Others view tipping as an extra expense and prefer not to contribute beyond their primary donation.
  2. Generosity and engagement: Some donors feel generous and will add a tip when they believe in the cause or campaign they’re supporting. They may also feel more engaged with the platform and the fundraising community when given the opportunity to contribute more.
  3. Impact on giving: The presence of an optional tip doesn’t significantly deter donors from making contributions to campaigns they care about. Donors tend to focus more on the cause or project itself and its importance to them.
  4. Transparency and trust: Transparency about where the tip money goes is crucial. Donors appreciate when platforms clearly state how they use tips to support the platform’s operations. This transparency helps build trust.
  5. Sensitivity to amount: Donors may be more willing to add a small tip rather than a large one. They perceive smaller amounts as more manageable and less likely to impact the overall donation.
  6. Segmentation: Donor attitudes vary based on age, income level, and familiarity with crowdfunding platforms. There’s a perception that younger donors may be more open to tipping, while older donors are not so inclined, but that conclusion requires further research.
  7. Awareness and understanding: Not all donors may be aware of the tip option or fully understand its purpose. Increasing awareness and providing clear explanations may persuade more donors to tip. The fact that some crowdfunding platforms obscure the location of the function that enables the user to change the tip amount doesn’t help (see Transparency and trust, above). Further, the donors need to opt-out of tipping rather than opting-in!

Nonprofit views

Compared to traditional charitable giving, donation-based crowdfunding offers a set of advantages that nonprofits generally like:

  • Crowdfunding reduces the coordination and transaction costs of donation collections (Choy and Schlagwein 2016).
  • Donation-based crowdfunding tends to collect small amounts from large crowds instead of seeking large amounts from a small group of affluent donors (Lu et al. 2014).
  • Crowdfunding initiators can easily broadcast their campaigns to a wider range of potential donors and establish social relationships with them (Liang and Turban 2011).
  • There’s greater real-time interaction—including updates, comments, and live streams between donors and project initiators throughout the fundraising process (Kuppuswamy and Bayus 2017).
  • Crowdfunding helps spread information to the public in new and effective ways (Lambert and Schwienbacher 2010), as in targeted advertising, which increases the probability of successful fundraising.
  • Crowdfunding provides opportunities for wider geographical reach, potentially to non-local donors with no previous connections to the fundraisers (Agrawal et al. 2015), in a cost-effective manner.
  • Advanced technology can significantly reduce coordination and transaction costs associated with fundraising by enabling timely online interactions, and cost-effective digital and mobile payment systems (Choy and Schlagwein 2016).
  • Crowdfunding presents opportunities to tap into new donors who may be actively seeking to contribute (Gleasure and Feller 2016) and offers a lower threshold for their involvement and activism, by making it easy for supporters to share the campaign with their own networks.

It’s important to note that donor attitudes evolve over time, and the specific findings of surveys vary depending on the sample size, demographics, and the particular crowdfunding platform being studied.

As noted, crowdfunding platforms often collect data and feedback from users to refine their models and policies, and they use this feedback to influence how they implement tipping and other features. But the platforms don’t usually share that data publicly; rather it’s proprietary to the specific platform. This is a profound limitation and prevents learning in the fundraising field.

For the most current insights into donor attitudes and behaviors regarding tipping, stay on the lookout for new surveys and research conducted by crowdfunding platforms, academic institutions, or market research organizations when publicly available. Also, if you’re using a crowdfunding platform to raise funds, incorporate a survey mechanism to learn how your donors experience the platform. That custom data is the best way for you to craft an effective fundraising program.

Have donors shared their views on crowdfunding tipping with you? If so, let us know in the comments.

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