ComparePSP

Best Payment Gateway for Nonprofits (2026)

Compare the top payment gateways for nonprofits and charities in 2026. We rank them by nonprofit pricing, donation forms, recurring giving, donor management, and tax receipt automation.

What to Look For

  • Discounted nonprofit pricing
  • Donation form quality
  • Recurring giving capabilities
  • CRM and donor management integrations
  • Tax receipt automation
  • Donor covers fees option

Top Picks at a Glance

#ProviderRatingTransaction FeeMonthly FeeBest For
1Stripe logoStripe4.62.9% + $0.30$0Best for developer-first companies building custom payment experiences
2PayPal logoPayPal4.02.99% + $0.49$0 (standard) / $30 (Pro)Best for businesses wanting instant brand recognition and buyer trust
3Square logoSquare4.32.6% + $0.10 (in-person) / 2.9% + $0.30 (online)$0 (Free) / $29 (Plus) / $79 (Premium)Best for small businesses needing an all-in-one POS and payment solution
4Mollie logoMollie4.2€0.25 + scheme rate (1.8% EU / 2.8% non-EU cards)$0Best for European small businesses seeking easy setup and local payment methods

Full Rankings

#1
Stripe logo

Stripe

4.6
4.6 / 5.0

Transaction fee: 2.9% + $0.30

Why it's good

Stripe offers the most flexible platform for nonprofit payment processing. Its nonprofit rate (2.2% + $0.30 in the US) saves money on every donation. Stripe integrates with all major nonprofit fundraising platforms (Donorbox, Give, Classy, Funraise) and CRMs (Salesforce, HubSpot, Bloomerang). Stripe Checkout and Payment Links make it easy to create professional donation pages without coding. Recurring billing through Stripe Billing handles monthly giving with smart retries. The API flexibility means any fundraising scenario — peer-to-peer campaigns, events, membership dues — can be built on Stripe.

Why it might not be

Stripe's nonprofit discount requires application and verification. The platform is more technical than some nonprofits need — setting up custom donation forms requires developer resources or a third-party fundraising tool. Stripe itself does not provide donation forms, donor management, or tax receipts — you need integrations for these. Non-technical nonprofit staff may find the dashboard overwhelming.

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#2
PayPal logo

PayPal

4.0
4.0 / 5.0

Transaction fee: 2.99% + $0.49

Why it's good

PayPal offers a discounted nonprofit rate (1.99% + $0.49 per transaction in the US for verified 501(c)(3) organizations) and a dedicated PayPal Donate button that can be added to any website in minutes with zero coding. PayPal's brand trust is especially valuable for nonprofits — donors feel secure giving through a recognized payment platform. PayPal Giving Fund can bring additional exposure through PayPal's donation marketplace. International donor support across 200+ countries is strong.

Why it might not be

PayPal's donation experience feels dated compared to modern fundraising platforms. Customization of donation forms is very limited — the PayPal Donate button is functional but basic. Recurring giving through PayPal subscriptions can be unreliable, with donors sometimes accidentally canceling. The per-transaction fee ($0.49) is high for small donations. PayPal's account stability issues (freezes, holds) are a risk for nonprofits that depend on steady cash flow for operations.

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#3
Square logo

Square

4.3
4.3 / 5.0

Transaction fee: 2.6% + $0.10 (in-person) / 2.9% + $0.30 (online)

Why it's good

Square offers straightforward pricing (2.6% + $0.10 in person, 2.9% + $0.30 online) with no monthly fees, making it a simple choice for smaller nonprofits. The free Square Online donation page lets nonprofits accept online contributions without a website. Square's POS hardware is ideal for collecting donations at events, galas, and in-person fundraisers. Invoicing features work well for pledge collection and sponsorship payments.

Why it might not be

Square does not offer nonprofit-specific pricing discounts. Its donation form capabilities are basic — no suggested amounts, no donor-covers-fees option built in, and limited customization. Recurring giving support is limited. Square does not integrate with major nonprofit CRMs or fundraising platforms as well as Stripe. Available in only 6 countries, limiting use for international nonprofits.

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#4
Mollie logo

Mollie

4.2
4.2 / 5.0

Transaction fee: €0.25 + scheme rate (1.8% EU / 2.8% non-EU cards)

Why it's good

Mollie is a strong choice for European nonprofits and charities. It supports SEPA Direct Debit for cost-effective recurring donations, iDEAL for Dutch donors, Bancontact for Belgian donors, and other local European payment methods. No monthly fees and competitive transaction pricing. The clean API integrates with European fundraising platforms. Payment Links provide a simple way to collect donations without building a donation page.

Why it might not be

Mollie does not offer specific nonprofit pricing discounts. It is limited to European organizations. Its fundraising-specific features are minimal — no donation forms, no donor management, no tax receipt automation. You need a third-party fundraising tool on top of Mollie. The platform is payment-focused rather than nonprofit-focused.

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Nonprofits and charities have payment processing needs that differ significantly from commercial businesses. Every dollar spent on transaction fees is a dollar that does not go toward your mission, making fee reduction a genuine operational priority. Many payment gateways offer discounted nonprofit pricing, but the savings vary considerably — from modest rate reductions to substantial discounts that can save organizations thousands annually. Beyond pricing, the donation experience matters enormously. Nonprofits need customizable donation forms that can be embedded on their website, support suggested donation amounts and custom amounts, handle one-time and recurring giving, and allow donors to cover processing fees (a feature that can recover 50-70% of transaction costs). Recurring giving is the lifeblood of sustainable nonprofit fundraising, and your payment gateway must make it easy for donors to set up monthly contributions with reliable automated billing and smart retry logic when payments fail. Donor management integration is critical — your gateway should sync with your CRM (Salesforce, HubSpot, Bloomerang, or similar) and provide the data needed for donor acknowledgment and tax receipts. Automated tax receipt generation saves significant administrative time, especially during year-end giving season when donation volume spikes. Many nonprofits also run fundraising campaigns, peer-to-peer fundraising, and events that require flexible payment collection beyond standard donation forms. We evaluated the leading payment processors on criteria that matter most for nonprofits: discounted nonprofit pricing, donation form quality and customization, recurring giving capabilities, CRM and donor management integrations, tax receipt automation, and the ability to let donors cover processing fees.

Related Resources

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Stripe

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Mollie

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Stripe vs Square

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Wise (TransferWise) vs PayPal

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Visa / Mastercard

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American Express

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Apple Pay

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Google Pay

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SEPA

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ACH

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iDEAL

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Bancontact

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Sofort (Klarna)

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Giropay

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Alipay

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WeChat Pay

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Klarna (Buy Now, Pay Later)

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Affirm

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Afterpay (Block)

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EPS

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Przelewy24

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BLIK

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Multibanco

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Paysafecard

Frequently Asked Questions

Which payment gateway offers the best nonprofit pricing?
PayPal offers the lowest verified nonprofit rate in the US at 1.99% + $0.49 per transaction for 501(c)(3) organizations. Stripe offers 2.2% + $0.30 for qualified nonprofits. For small donations, Stripe's lower per-transaction fee ($0.30 vs $0.49) makes it cheaper. For larger donations, PayPal's lower percentage rate wins. Square does not offer nonprofit discounts. In Europe, Mollie's standard rates are already competitive without special nonprofit pricing.
How can nonprofits reduce payment processing fees?
The most effective strategy is enabling a "donor covers fees" option on your donation form — studies show 50-70% of donors will opt to cover the processing fee when asked. Beyond that, apply for nonprofit pricing from Stripe and PayPal. Encourage recurring giving via bank transfer (ACH or SEPA Direct Debit) which has lower fees than card payments. For large donations, provide bank transfer instructions as an alternative to card payment.
What is the best donation form for nonprofits?
The best donation forms come from dedicated fundraising platforms that integrate with payment gateways. Donorbox, Give (GiveWP), Classy, and Funraise all offer optimized donation forms with suggested amounts, recurring giving, donor-covers-fees options, and tax receipt automation. These platforms typically use Stripe or PayPal for payment processing. For nonprofits wanting a simple solution without a third-party tool, Stripe Payment Links or PayPal Donate buttons work as basic alternatives.
Should nonprofits use a fundraising platform or a direct payment gateway?
Most nonprofits benefit from a fundraising platform (Donorbox, Classy, Give) layered on top of a payment gateway (Stripe, PayPal). The fundraising platform provides donation forms, donor management, tax receipts, campaign pages, and recurring giving management — features that payment gateways alone do not offer. Very small nonprofits with minimal needs may start with just a PayPal Donate button, but as giving grows, a proper fundraising platform pays for itself through higher conversion rates and better donor retention.
How do nonprofits handle international donations?
Use a gateway that supports multi-currency donations — Stripe (135+ currencies) and PayPal (200+ countries) are the best options for international giving. Consider tax implications: donations from foreign donors may not be tax-deductible in the donor's country. Accept local payment methods where possible — European donors prefer iDEAL, Bancontact, or SEPA over cards. Display donation amounts in the donor's local currency using your gateway's multi-currency features.