Stripe is one of many online payment processing solutions commonly used by businesses and entrepreneurs. It provides a convenient gateway for accepting credit or debit card payments.
Along with businesses, nonprofits may benefit from this platform. However, before committing to Stripe, you should explore the benefits that it provides for nonprofits.
Why choose Stripe over other payment platforms?
Stripe is not the only payment processing platform on the internet. PayPal is at the forefront of online money transfers. Other payment platforms include WePay, Venmo, and Dwolla.
While these other payment options provide secure online money transfers, Stripe offers several features that should appeal to any nonprofit. We’ll explore the most important ones below.
With Stripe, you simply pay for the services that you use. For nonprofits, you are only paying for the transaction fees, which are lower compared to other payment options.
For each transaction, Stripe charges 2.9% and $0.30. There are no setup fees to start using the service or subscription fees to keep using it, that can eat into your profits. Stripe may even offer a discount to your nonprofit (typically 2.2% instead of 2.9%).
2. Provide a convenient payment option for donors
Because Stripe is a platform software developers love, you’ll find it integrated with a lot of the tools you’ll be using for fundraising, therefore allows you to create easy fundraising pages.
Giving people an easy way to contribute to your cause helps increase your donations. If the payment process is complicated or does not accept a person’s primary payment method, they are much less likely to donate.
3. Accept monthly recurring donations
It is also easy for nonprofits to establish monthly recurring payments from their donors with Stripe’s Billing product, which is specifically designed to handle recurring billing cycles. These recurring donations provide a sustainable predictable income for you. Instead of collecting a one-time donation, you are receiving continued payments each month.
Market research shows that people are more likely to donate when they can split their donations into a series of smaller donations. Some people may not have $100 dollars to spare but may be willing to contribute $10 each month (think of the amount in a 2-year period!).
How can you start using Stripe to collect donations?
If you want to start using Stripe for your collections, you can go ahead and create your account on their website. After creating your account, you can decide how you want to implement the payment processing features on your website.
Another option is to use an all-in-one online donation platform. We do that at GivingLoop as we provide you with a complete solution for managing recurring monthly donations. This will take all the technical efforts off your shoulder, and Stripe lies in the core of our product.
The bottom line is that Stripe has reformed money processing on the internet. For nonprofits, the interface that you choose may make a difference in obtaining new donors. Your donors need an uncomplicated option for submitting their payments.