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How to Accept Donations through Venmo for Non-profits?

Accepting donations is made easy

by Jhair
30 June, 2022 - Updated on 28 February, 2023
in Venmo
How to Accept Donations through Venmo for Non-profits?

Due to many users currently using Venmo’s platform for mobile payments, non-profits are looking for ways to expand their payment options. Mobile donations account for one-third of donations and one-quarter of the total revenue for these organizations. For this reason, knowing How to Accept Donations through Venmo for Non-profits is important.

Thanks to payment platforms, people can pay for everything they need conveniently and without entering more than 20 numbers. And non-profits facilitate online donations to meet donors more simply.

However, there are many questions about giving through Venmo and how to incorporate it into fundraisers.

Contents

  • Which donors can we reach using Venmo?
  • What are the benefits of using this platform for non-profit organizations?
  • How to start using Venmo for non-profits?
  • What can be done to increase donations?
  • Venmo vs PayPal

Which donors can we reach using Venmo?

Most users who use Venmo for their payments are people under 50 who reside in the United States. Millennials and Gen Zers are the ones who overwhelmingly turn to the app as a payment option for all their needs.

82% of people using both Venmo and PayPal are between the ages of 18 and 34, and 50% are millennials between the ages of 25 and 35. It means that by using Venmo in a non-profit organization, we can reach a large segment of the population. Thanks to the many people using this mobile payment system, we can have many more potential donors.

What are the benefits of using this platform for non-profit organizations?

Asking people to pay with Venmo can be much easier for non-profits. Users typically leave money in their account and use this money that is ready to be used or spent to make donations.

Check ➤  Can you send yourself money on Venmo?

This way, it will feel less like a new expense, and more like we are moving money for a good cause. On the other hand, people mostly use the platform for small transaction payments of around $60. For this reason, it can be a very useful alternative to reaching donors who may not have much extra money.

Moreover, the app features a social media-style feed that will show transactions and comments. This way, users’ friends can see when they donate to a cause and may be inspired to do the same. It makes it possible to get positive word of mouth and reach donors more organic way.

How to start using Venmo for non-profits?

Venmo has announced that it is working with a few organizations in a private beta test. This is to give donation options to these types of organizations, but it is closed to new applications for the time being.

It is expected that it will be a matter of time before the company enables this payment system for these organizations and figures out how they will optimize the experience for these types of organizations. For now, to achieve donations through Venmo, we will have to use third-party tools.

What can be done to increase donations?

Although there is currently no direct way to add Venmo as a payment method for charities. There are a few things we can do to start using it:

  • Donation form: we will be able to add Venmo as a form of payment to donate. This type of donation can be processed through PayPal Checkout, as many of these organizations already have this service, so it is an interesting option to consider.
  • QR Code: QR codes are used to facilitate payment acceptance for businesses. These codes can encourage donors to donate easily. And they can share them via social media or on the website.
Check ➤  Can I buy crypto on Venmo?

Venmo vs PayPal

PayPal owns both companies. However, the experiences on both platforms are very different. The fees to send and receive money are different on each platform.

On PayPal, we find a platform that can be used in over 200 countries and offers non-profit users a fee of 1.99% + $0.49 per transaction. But the lack of customization opportunities makes it not the best option.

On the other hand, Venmo does not yet have a dedicated program for non-profits, but it can be integrated into donation forms. The donation limit is lower, as it will be a maximum of $299.99, and is mainly used for small donations. The fees are lower at 1.9% + $0.10.

For these reasons, it is these reasons that more and more people are using Venmo’s app, and most users will always appreciate being able to send money for free as long as it comes from their balance. This application is only available in the United States, so we will be able to receive donations only from these users.

It is one of the best platforms for fundraising, especially because of the large number of active users. However, we can only hope that in the future, they will be able to process donations for non-profit organizations in a simpler way.

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