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Having the right tools to accept donations is crucial for nonprofits. One such tool that has gained popularity is Square for nonprofits, a versatile and easy to set up payment processing platform.
In this comprehensive guide, we’ll explore how to use Square for nonprofit donations, including fees and setup. Additionally, we’ll introduce you to an alternative solution, Glass Register, which allows nonprofits to keep 100% of your donations.
Understanding Square for Nonprofits
Square is a widely-used payment processing platform that allows businesses and organizations to accept payments both online and in person.
For nonprofits, Square offers a range of features that can help streamline donation collection, event ticket sales, and more. But how exactly can you use Square for nonprofits, and is it the right choice for your organization?
Can You Use Square for Nonprofits?
Yes, you can use Square for nonprofits. Square provides a straightforward and user-friendly interface that allows nonprofits to accept donations, sell merchandise, and manage event ticket sales.
Square Point of Sale App
Square for nonprofits facilitates in-person donations through its POS app, which accepts payments at fundraising events, live gatherings, or whenever the opportunity arises.
Square Online Donations
Square also enables nonprofits to list donations as items for sale on their websites, making it easy for supporters to contribute.
Square Payment Links can also be shared with donors, allowing them to complete transactions seamlessly from any device similar to Venmo for nonprofits.
Square Fees for Nonprofits
One of the critical considerations for any nonprofit is the cost associated with using a payment processing platform. So, what are the Square fees for nonprofits?
Is Square Free for Nonprofits?
Square is not free for nonprofits. While there are no monthly fees or setup costs, the transaction fees apply to every payment processed through the platform.
It’s essential for nonprofits to factor these fees into their budgeting and fundraising strategies.
Square Fees for Nonprofits
Square charges a standard processing fee for each transaction. As of 2025, the fees are:
| Transaction Type | Payment Details | Transaction Fee |
| In Person | A supporter taps, dips, or swipes their credit or debit card. | 2.6% + 10¢ |
| Online | A supporter donates via an online form, shops online, or registers for an event. | 2.9% + 30¢ |
| Manually Entered | Card details are manually input, or a card on file is used. | 3.5% + 15¢ |
| Invoices | Payments made via invoice using a credit card, Apple Pay, Google Pay, or ACH. | 3.3% + 30¢ |
These fees are about on par with normal fees for credit card processing for nonprofits. Still, they can add up, especially for organizations with a high volume of donations.
Does Square Offer Discounts for Nonprofits?
Square does not offer specific discounts for nonprofits. The transaction fees are the same for all users, regardless of their organizational status. However, the platform’s competitive rates and robust features make it a popular choice for many nonprofits.
Alternatives to Square for Nonprofits
Glass Register - 100% Free Alternative
If you’re looking for a free alternative to accept donations online, Glass Register donation forms offer zero transaction and monthly fees, so you keep 100% of your donations. There is also a zero-fee, full-service setup included.
Instead of nonprofits paying transaction fees, donors have the option to contribute voluntarily. The great thing is, whether they decide to contribute or not, nonprofits always keep 100% of the donations they collect online. Get started >>
Square vs. PayPal
Square is ideal for organizations that require a seamless integration of both online and in-person transactions, thanks to its comprehensive POS system.
However, PayPal is a popular choice if you’re only looking for online donations. PayPal nonprofit fees are also lower than Square’s thanks to a nonprofit discount on transaction fees, which can be a significant advantage for organizations looking to minimize costs.
Square vs. Stripe
While Square is a great choice for organizations that frequently host events or need a physical point of sale, Stripe might be a good choice if you are looking for extensive customization options and advanced features on your donation pages.
Like PayPal, Stripe also offers a discounted rate for nonprofits, making it the more affordable option.
How to Set up Square for Nonprofit Donations
To use Square to accept donations, follow these steps:
- Step 1: login squareup.com
- Step 2: Go to dashboard > Online > Items > Site items
- Step 3: Click the “Create Item” button
- Step 4: Select “Donation” for Item Type
- Step 5: Set donation amounts and decide if you want to allow custom amounts:
Here’s a video you can follow for step by step instructions.
Pros - Key Features of Square for Nonprofits
Easy Setup and Integration
Setting up Square for nonprofits is a breeze. With its intuitive interface, you can quickly create an account and start accepting payments. Square also integrates seamlessly with various website builders and e-commerce platforms, making it easy to incorporate into your existing systems.
In-Person and Online Payments
Square allows nonprofits to accept payments both in person and online. Whether you’re collecting donations at an event or through your website, Square provides a reliable and secure payment processing solution.
Detailed Reporting and Analytics
Square provides comprehensive reporting and analytics tools that give you insights into your fundraising efforts. You can track donations, analyze donor behavior, and make data-driven decisions to optimize your campaigns.
Customizable Donation Pages
With Square, you can create customized donation pages that reflect your nonprofit’s branding. This feature helps create a cohesive and professional look, enhancing donor trust and engagement.
Recurring Donations
Square for nonprofits offers the option to set up recurring donations, allowing supporters to contribute on a regular basis. This feature is invaluable for building a steady stream of funding. See the impact of recurring donations here.
Cons - Limitations and Considerations for Nonprofits Using Square
Processing Fees
Nonprofits should be aware that each payment and card transaction through Square incurs a fee. Many organizations may opt for Square’s without fully realizing these hidden costs.
Unlike some platforms, Square does not offer a dedicated nonprofit discount. If avoiding processing fees is a priority, consider alternatives like Glass Register, which provides a 100% free option without any transaction fees.
Account and Bank Holds
Square has the authority to place holds on nonprofit accounts if there are significant chargebacks or suspected fraudulent activities. Such holds can freeze payouts to your organization’s bank account, potentially disrupting access to vital funds.
Situations that might trigger these holds include expired donor cards, incorrect card payment entries, hacked bank accounts, or lost/stolen card reports.
Limited Customer Support
Square primarily offers customer support through online chat and tutorials, which may suffice for minor issues but can be inadequate for more pressing concerns. The absence of dedicated, personalized support can lead to longer resolution times and affect operational efficiency, potentially resulting in dissatisfied donors.
Conclusion
Square for nonprofits is a versatile and user-friendly payment processing platform that offers a range of features to streamline fundraising efforts. While it does come with transaction fees, its robust capabilities make it a popular choice for many organizations.
Whether you’re hosting a fundraising event or running an online campaign, Square can help you efficiently manage your transactions. However, you should consider exploring alternatives like Glass Register, which allows nonprofits to keep 100% of their donations, maximizing the impact of every contribution.
Whether you choose Square or an alternative solution, the key to successful fundraising lies in optimizing your strategies, engaging with donors, and leveraging data to make informed decisions. By doing so, you can ensure that your nonprofit continues to thrive and make a positive impact in the world.
