Nonprofits lose 2-3% of every donation to processing fees. We compare Stripe, PayPal, Square, Clover, and Wise Business on nonprofit rates, receipts, recurring giving, and geographic reach — so you keep more of what you raise.
Nonprofits lose roughly 2-3% of every donation to payment processing fees1. On $10,000 in donations, that's $200-300 in fees — money that could fund programs. The right processor minimizes that leakage while supporting recurring giving, tax receipts, and donor trust.
The key variables to compare: per-transaction fee (especially whether a nonprofit discount exists), payout speed, receipt and tax-document capabilities, recurring giving support, and geographic reach for international donors35.
Stripe offers a discounted 501(c)(3) rate of 2.2% + $0.30 per transaction12. You'll need to email nonprofit@stripe.com to request the rate2. On a $100 donation, Stripe nets your organization about $97.501.
Where Stripe shines is flexibility. It supports 135+ currencies across 46+ countries, Apple Pay and Google Pay, and customizable payout schedules2. It integrates with virtually every CRM and donation platform — Donorbox, Fundraise Up, Bloomerang, and many others build on top of Stripe4. Two-day payouts are standard3.
The trade-off: Stripe has no native donation forms, branded tax receipts, or donor management tools. You build or buy those through a platform layer (which often adds its own fees on top)1. If your team has technical capacity or you're already using a Stripe-based donation platform, it's the strongest foundation.
PayPal's nonprofit rate is 1.99% + $0.49 for verified 501(c)(3) organizations12. On a $100 donation, that nets about $97.52 — slightly better than Stripe on larger donations, though the higher per-transaction flat fee means PayPal costs more on small donations1.
PayPal's real advantage is trust. It operates in 200+ countries and 130+ currencies2, and donors who already have PayPal accounts can complete a gift in a couple of clicks. That familiarity can lift conversion rates, especially for older donors or one-time gifts2.
Downsides: PayPal doesn't offer branded IRS-compliant receipts, and there's no native recurring giving functionality6. The PayPal Giving Fund disburses donations quarterly rather than immediately2. For nonprofits that need automated monthly giving or tax-ready documentation, you'll need a separate tool.
Square charges 2.6% + $0.15 for in-person transactions and 3.3% + $0.30 online, with no nonprofit discount1. That makes it more expensive per transaction than Stripe or PayPal for online donations, but for physical donation collection — galas, fun runs, thrift store registers — the hardware is hard to beat3.
The free card reader, reliable POS software, and integrated inventory tracking make Square ideal for nonprofits running events or operating retail storefronts3. Payouts are fast and the setup is simple.
What Square doesn't offer: nonprofit pricing, tax receipts, or recurring giving tools. It's a payment processor, not a donation platform. Use it alongside a dedicated online donation tool rather than as your primary system3.
Clover charges 2.3% + $0.10 per transaction and offers an integrated POS system with an app marketplace3. That app ecosystem is the differentiator — you can add donor management, loyalty, and reporting tools directly to your POS3.
For nonprofits that run frequent in-person events and want hardware flexibility (stationary registers, mobile devices, kiosks), Clover provides more customization than Square's more locked-down ecosystem. The slightly lower per-transaction rate also helps at high-volume events3.
Like Square, Clover is a POS-first tool. No nonprofit discount documentation, no native tax receipts, and no donation-form builder. It's a complement to your online donation stack, not a replacement3.
Wise Business isn't a traditional payment processor — it's a multi-currency account designed to reduce the cost of moving money across borders. For nonprofits accepting donations from international donors, the FX fees that Stripe and PayPal charge on currency conversion can add up significantly2.
Wise lets you hold and receive money in multiple currencies with mid-market exchange rates and low, transparent conversion fees. If your organization operates globally or receives a meaningful share of gifts from outside your home country, Wise can cut the hidden cost of international donations2.
It won't replace your donation processor — there are no donation forms, no receipts, no recurring giving. But paired with Stripe or PayPal for the front-end donation flow, Wise can handle the back-end currency conversion at a fraction of the cost2.
| Processor | Nonprofit rate | In-person rate | Online rate | Payout speed | Receipts | Recurring giving |
|---|---|---|---|---|---|---|
| Stripe | 2.2% + $0.30 | N/A | 2.2% + $0.30 | 2 days3 | No native | Via integrations |
| PayPal | 1.99% + $0.49 | N/A | 1.99% + $0.49 | 1-3 days3 | No branded IRS | No native |
| Square | No discount | 2.6% + $0.15 | 3.3% + $0.30 | Fast | No | No |
| Clover | 2.3% + $0.10 | 2.3% + $0.10 | 2.3% + $0.10 | Standard | No | Via apps |
| Wise | N/A (FX focus) | N/A | N/A | Varies | No | No |
On a $100 donation, the net to your organization: Stripe ~$97.50, PayPal ~$97.52, Square ~$96.401. The differences widen at scale — on $100,000 in donations, the gap between Stripe and Square is over $1,000.
Platforms like Zeffy offer $0 fee processing by covering costs through optional donor tips1. All-in-one tools like CharityEngine and Bloomerang Payments bundle the processor, donation forms, CRM, and receipting into a single package54. These can reduce the integration work but often charge platform fees of 5-7% stacked on top of processing1.
If your priority is simplicity over flexibility, a bundled platform may cost more in total fees but save staff time. If you want maximum control and the lowest per-transaction cost, pairing Stripe with a lightweight donation form builder is typically the most cost-effective approach4.
We compared per-transaction fees (including nonprofit discounts), payout speed, receipt and tax-document capabilities, recurring giving support, geographic reach, and integration with nonprofit CRMs. Fee data comes from Zeffy's comparison tables1, RallyUp's head-to-head analysis2, and Bonterra's processor roundup3. We also considered recommendations from Kindful4 and Double the Donation5.
AskBuy may earn a commission when you sign up through links on this page. That doesn't influence our recommendations — we picked these processors based on fee structure and nonprofit fit, not affiliate payouts.
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