Donation Processing for Nonprofits: An Independent Review of the Platforms, the Fees, and the Hidden Costs
By Laurence A. Pagnoni, MPA
Author, The Nonprofit Fundraising Solution | Former Faculty, NYU Heyman Center for Philanthropy, School of Professional Studies
Published July 2026 | laurencepagnoni.com
A Note on Independence and Accuracy
No platform reviewed in this white paper has paid me, sponsored this content, endorsed my recommendations, or asked to be included. I have no financial relationship with any of the services named here. This review reflects my own assessment of publicly available information and practitioner experience working with nonprofits across three decades.
Accuracy statement: Platform descriptions, fee structures, ownership details, and nonprofit status designations were verified against publicly available sources as of July 2026. Fees, features, ownership structures, and organizational designations change — sometimes significantly and with little notice. You are responsible for verifying all information directly with each platform before making any decision. This white paper will be reviewed and updated annually.
Executive Summary
This white paper aims to help you make the best decision possible concerning your donation processing. Donation processing is not just a commodity decision; instead, the platform your nonprofit chooses determines how much of every gift reaches your mission, how much friction donors encounter at checkout, whether your organization owns its donor relationships or shares them with a third party, and whether your development program can grow without rebuilding its giving infrastructure from scratch.
This white paper reviews eleven platforms across four parts. Part One defines the fee vocabulary you need to know before evaluating any platform — platform fees, processing fees, the tip model, cover-the-fees, and the fee math calculation (defined in full in Section 2) that makes true comparison possible. Part Two reviews the detailed features of each platform, including which processors are nonprofits themselves and what that does and does not mean in practice. Part Three presents a side-by-side comparison table. Part Four offers a scalability framework, organized by organizational size, and four-questions to ask yourself as you decide.
For organizations under $100,000 in annual donations, Zeffy or Give Lively are the strongest zero-cost options — with important drawbacks on Zeffy's donor tip model and Give Lively's eligibility screening. For organizations that need CRM integration and recurring giving flexibility, Donorbox is the platform most likely to scale alongside a growing development program, with fees to match. For peer-to-peer and social giving, Givebutter leads. For large organizations running multiple campaigns at scale, Classy/GoFundMe Pro is the category. No platform is right for every organization — the fee math, described in sec.2, a calculation run on your own donor volume, will often make the right choice clear.
Table of Contents
Part One: What You Need to Understand Before Choosing Anything
1. How Big Is the Donation Processing Industry — and Why Does That Matter?
2. Nonprofit Donation Processing Fees Explained: Platform Fees, Processing Fees, and the Tip Model
3. Which Donation Processors Are Nonprofits Themselves — and Does That Matter?
4. Before You Choose a Platform, Know Which Model Your Organization Uses
Part Two: The Platform-by-Platform Review
5. Is Zeffy Really Free for Nonprofits?
6. How Much Does Donorbox Actually Cost?
7. Is Give Lively Free for Nonprofits?
8. How Does Givebutter Work — and What Does It Cost?
9. What Is PayPal Giving Fund — and What Does It Actually Cost Nonprofits?
10. What About Network for Good/Bonterra, Classy, and Fundraise Up?
11. Can Nonprofits Accept Donations on Squarespace — and Should They?
Part Three: The Comparison Table
12. Which Nonprofit Donation Platform Has the Lowest Fees? A Side-by-Side Comparison
Part Four: How to Choose
13. Which Donation Platform Can Grow With Your Nonprofit? A Scalability Framework
14. How Do I Choose the Right Donation Platform for My Nonprofit? A Decision Framework
*** Where to Go for Further Research — Independent Vendor Comparison Resources
Conclusion: I Want to Hear from You — Your Experience Matters
How to Read and Use This White Paper
This white paper covers significant ground. Rather than reading it straight through, and to save yourself time, find yourself in one of these three reader profiles, and go directly to the sections that apply most to your situation right now:
You are new to online donation processing. Your organization accepts gifts through PayPal, a basic donate button, or a check in the mail, and you are wondering whether there is a better approach. Start with Part One (Sections 1 through 3), then read the entries for Zeffy, Donorbox, and Give Lively in Part Two. The comparison table in Section 11 will give you a side-by-side view of fees and fit.
You are already using a platform and wondering whether it is still the right one. Your organization has been with the same processor for two or more years and you want to know whether you are overpaying, underserved, or missing a better option. Go directly to the section covering your current platform in Part Two, then read the scalability framework in Section 12 and run the fee math exercise in Section 13.
You are making a platform decision for a mid-size or growing organization. Your annual donation volume is above $100,000 and you need to weigh CRM integration, recurring giving infrastructure, donor data ownership, and scalability alongside fee structures. Read Sections 5 (Donorbox), 7 (Givebutter), 8 (PayPal Giving Fund — specifically the donor data warning), and the full framework in Part Four.
PART ONE: WHAT YOU NEED TO UNDERSTAND BEFORE CHOOSING ANYTHING
Section 1 of 14 — How Big Is the Donation Processing Industry — and Why Does That Matter?
The nonprofit donation software market was valued at approximately $2.7 billion in 2025 and is projected to reach $5.3 billion by 2033, growing at roughly 8.7 percent annually, according to Verified Market Reports. The broader fundraising software market — which includes CRM systems, campaign management, and event tools alongside pure donation processing — is valued at $15.1 billion globally.
A note on sourcing: The market figures above come from Verified Market Reports' Donation Software Market report (verifiedmarketreports.com/product/donation-software-market/, accessed July 2026). These are commercial reports that synthesize secondary sources rather than conduct primary research, and different firms define the market differently — producing 2025 estimates that range from $2 billion to over $4 billion depending on which platforms and segments are included. The figures used here are specific, widely cited, and directionally consistent with the broader range of estimates. Treat them as a reliable order-of-magnitude indicator rather than a precise measurement.
The point is that you should realize these platforms are substantial commercial enterprises with investor expectations, acquisition pressures, and competitive dynamics that can produce fee increases, product pivots, ownership changes, and platform closures with little warning. Givebutter raised $50 million in venture capital from Bessemer Venture Partners in April 2024. Blackbaud received and rejected a $4.3 billion acquisition offer in May 2024. Qgiv was acquired by Bloomerang in 2024. The landscape shifts regularly. And you have purchase power to support or decline to support a platform that is unfriendly to your nonprofit. And there's more.
A nonprofit that builds its donor relationship infrastructure on a single platform owned by venture capital investors is taking a concentration risk — the same kind of concentration risk development directors warn against in revenue strategy. Commercial platforms can be excellent but protect yourself regardless of which one you choose by taking these three steps: export your donor data regularly so you are never locked in, review your platform contract annually, and have a migration plan ready in case the platform reprices or gets acquired.
Section 2 of 14 — Nonprofit Donation Processing Fees Explained: Platform Fees, Processing Fees, and the Tip Model
Three distinct cost layers can apply to any donation — and platforms describe their pricing in ways that make comparison really difficult unless you understand what each layer is. Comparing a platform fee to a processing fee is like comparing the price of a car to the price of gasoline. Here are the three cost centers:
Platform fee: The charge the software company levies on each donation, expressed as a percentage of the gift. This is the fee that varies most between platforms — from zero percent (Zeffy, Give Lively, PayPal Giving Fund) to three percent or more (Squarespace Business plan, Fundly). Platform fees are paid by the nonprofit and reduce the net amount received from each gift.
Processing fee: The charge levied by the payment processor — almost always Stripe or PayPal — for moving money from the donor's bank account or credit card to the nonprofit's account. This fee exists regardless of which platform you use, because every digital transaction requires a payment processor. Stripe's nonprofit rate is 2.2 percent plus $0.30 per transaction. PayPal's charity rate is 1.99 percent plus $0.49 per domestic transaction. These rates are lower than the standard commercial rates and require application and approval.
The tip model: A pricing approach used by platforms that describe themselves as "free to nonprofits." Rather than charging the nonprofit a platform fee, these platforms add an optional tip — typically defaulting to 15 percent of the donation amount — to the donor's total at checkout. The tip is technically optional and can be adjusted or removed, but it defaults to being included and is sometimes positioned in ways that make it easy for donors to miss or feel awkward declining. A donor who intends to give $50 may find their total is $57.50 before they notice the tip. Whether this is an ethical fundraising practice is a question worth considering explicitly — a donor who feels surprised or misled by a tip is a donor whose trust has been damaged, and donor trust is a fundraising asset that is difficult (impossible?) to rebuild.
Donor Choice to Cover-the-fees: An option on many platforms that invites the donor to add the processing cost to their gift so the nonprofit receives the full intended amount. When clearly presented, over 50 percent of donors typically choose to cover fees. This is a donor-friendly approach that we should all obviously choose when available — it is transparent, optional, and puts the decision where it belongs, with the donor.
ACH payments: Automated Clearing House transfers that move money directly between bank accounts rather than through credit card networks — cost significantly less to process than credit card transactions, typically around 0.8 percent with a cap of $5.00 per transaction on Stripe. Platforms that offer ACH as a donor payment option can reduce processing costs substantially.
Run the "fee math" calculation that will benefit you: The cost difference between donor processing platforms can be thousands of dollars per year at moderate donation processing volumes. For example, on $25,000 in annual donations, a platform charging a 3 percent platform fee plus 2.9 percent processing takes approximately $1,475 to $1,781 before any donor covers fees. A zero-fee platform takes nothing. That gap represents funds you can better use elsewhere.
Make the full cost calculation before you choose a platform — and when you think you should switch. To make the calculation add platform fees plus processing fees, then subtract any “cover-the-fees” revenue from donors who opt in at a realistic uptake rate. That calculation is what practitioners call the fee math, and running it on your organization's actual annual donation volume before committing to any platform is a hugely useful step in your decision-making process.
Section 3 of 14 — Which Donation Processors Are Nonprofits Themselves — and Does That Matter?
Several of the platforms reviewed here are themselves nonprofit organizations. There was a time when that designation carried a reliable promise — that the platform would answer to its mission rather than to investors. That promise is now worth scrutinizing. Donation processing has become a multi-billion dollar industry, and where there is that much money at stake, nonprofit status alone does not protect you from fee increases, ownership changes, or mission drift. Treat it as one data point, not a guarantee. Buyer beware.
Zeffy: A for-profit technology company incorporated as Simplyk Inc., based in Montreal, Quebec. Despite being for-profit, it operates on a mission-aligned model — it serves nonprofits exclusively, charges them nothing, and funds its own operations entirely through optional donor tips. It is not a registered nonprofit, but its structural incentives are more closely aligned with the nonprofit sector than a standard venture-backed platform.
Give Lively: A nonprofit. Its zero-fee model is sustained by philanthropic support from funders who believe the nonprofit sector should have access to free fundraising infrastructure.
PayPal Giving Fund: An IRS-registered 501(c)(3) public charity (Federal Tax ID: 45-0931286), not a division of PayPal's commercial operations.
Network for Good / Bonterra: The technology platform was acquired by for-profit Bonterra in January 2022. The original nonprofit donor-advised fund continues separately as For Good (forgood.org). The software platform reviewed here is the for-profit Bonterra product.
The others reviewed here — Donorbox, Givebutter, Classy/GoFundMe Pro, Fundraise Up, Squarespace, and Stripe — are for-profit companies. Being a nonprofit processor means the platform's structural incentives are better aligned with the nonprofit sector's interests — but structural alignment does not guarantee a better product, better support, better integrations, or better fit for your specific needs. Nonprofit status — or mission alignment — is one factor among several worth weighing, not a sufficient reason to choose or avoid any platform on its own.
Section 4 of 14 — Before You Choose a Platform, Know Which Model Your Organization Uses
The eleven platform reviews in Part Two are not equally relevant to every reader. Which one matters most to your organization depends on a question that precedes the fee comparison entirely: how does your organization currently manage donor data, and how do you expect to manage it over the next two to three years?
A note on terminology ahead: "native integration" and "direct integration" are used interchangeably to mean a built-in connection between two software systems designed and maintained by the platform itself, transferring data automatically without requiring a third-party connector like Zapier. A native or direct integration is more reliable, more complete, and requires less ongoing maintenance than a Zapier-based connection. When I say a platform lacks native integrations, it means you will need to build and maintain Zapier workflows — or export and import data manually — to keep your donor records current across systems.
Three distinct models describe how nonprofits organize the relationship between donation processing and donor data. Identifying which model applies to your organization before reading any platform review will save time and sharpen the decision considerably.
Model One: The platform is your donor database. Many small and early-stage nonprofits use their donation platform as their primary record of donor relationships — giving history, contact information, communication notes, and recurring gift status all live inside the platform rather than in a separate CRM. This is often not a deliberate choice. It is what happens when an organization starts accepting online gifts and discovers that the platform keeps records, and that those records are sufficient for now. If this describes your organization, fee structure, ease of use, and the quality of the platform's built-in donor management are your primary criteria. The risk to be aware of: organizations in Model One often discover, when they try to migrate to a dedicated CRM, that years of donor data are locked in a format that does not export cleanly. Before committing to any platform as your system of record, confirm what a full data export looks like and whether it is compatible with CRMs you might eventually adopt.
Model Two: The platform feeds a separate CRM. Mid-size organizations typically process gifts through a donation platform and then sync that data — natively or through a connector like Zapier — into a dedicated CRM such as Bloomerang, Little Green Light, DonorPerfect, or Salesforce Nonprofit, which serves as the system of record for donor relationships. In this model, the quality of the integration between platform and CRM is the most consequential factor in the decision — more consequential than the fee structure. A platform that costs one percent more per transaction but connects directly with your CRM is almost always worth more than a cheaper one. A platform that forces you to rely on Zapier workarounds or manual CSV exports to keep your donor records current will cost you more in staff time and data errors than the fee savings are worth. The cost of imperfect data compounds silently: lapsed recurring gifts that do not update in the CRM, address changes that do not sync, duplicate records created by mismatched email addresses. These are not technical inconveniences. They are donor relationship failures. If your organization operates in Model Two, identify which platforms have a direct, certified connection to your specific CRM before evaluating anything else. That answer will narrow the field significantly.
Model Three: Your CRM includes native donation processing. An increasing number of nonprofit CRMs — Bloomerang, Neon One, Salesforce Nonprofit with Elevate, and others — now include built-in donation processing alongside their donor management tools. For organizations using these systems, there may be no separate platform to choose. The integration problem disappears when both functions live in the same system, and the donor record is updated in real time with every transaction. If your organization is in Model Three, or planning to move there, the platform reviews in Part Two are largely secondary to the question of which CRM serves your organization best — which is a different analysis than this white paper provides.
Before reading Part Two, ask yourself: does your organization have a dedicated CRM that serves as the system of record for donor relationships? If no — you are likely in Model One. Read the platform reviews with fee structure and built-in donor management as your primary filters. If yes — you are in Model Two. Identify which platforms have a direct connection to your CRM first, then evaluate fees among those options. If your CRM includes built-in donation processing — you are in Model Three. Confirm the fee structure of your CRM's built-in processing and verify whether a separate platform would improve conversion rates or features enough to justify the additional complexity.
PART TWO: THE PLATFORM-BY-PLATFORM REVIEW
Section 5 of 14 — Is Zeffy Really Free for Nonprofits?
zeffy.com | For-profit, mission-aligned — incorporated as Simplyk Inc., Montreal
Zeffy is the only platform in this review where both the platform fee and the processing fee are zero for the nonprofit. It is a for-profit company that serves nonprofits exclusively, funding its own operations through the optional donor tips described in Section 2. It has processed over $1 billion in donations and serves more than 80,000 nonprofits across North America, which gives it a solid track record despite its relatively recent founding.
What you get for zero dollars is substantial: donation forms, event ticketing, peer-to-peer fundraising, raffles, membership management, donor management, email communications, and reporting. Organizations like Kids Cancer Care have reported saving $195,000 in fees by switching to Zeffy, and that figure is plausible at scale.
The concern is the tip. Zeffy's tip defaults to 15% of the donation amount and is added automatically to every transaction — and your nonprofit cannot disable it. A donor intending to give $50 sees $57.50 before they adjust if they notice at all. In my view this will erode donor trust over time, and I do not recommend it for organizations whose donors are accustomed to transparent, straightforward giving. If your donor base is younger and digitally native — already accustomed to tip prompts in everyday commerce — the impact may be less pronounced. That is a judgment you have to make honestly, knowing your own donors.
Where Zeffy falls short beyond the tip question: its native connections to CRM and accounting systems are limited, and it relies primarily on Zapier — a third-party automation tool that connects software applications to each other without coding — to bridge those gaps. There is no premium support tier. It works well for organizations running straightforward campaigns without complex data needs. If your program requires deep CRM integration or robust reporting exports this platform is not for you.
Section 6 of 14 — How Much Does Donorbox Actually Cost?
donorbox.org | For-profit
Donorbox is widely used because its embeddable forms drop cleanly into any website and its integration roster is broader than any other platform in this review. For Squarespace users who need more than the native donation block, it is the most commonly recommended embedded alternative.
The fee structure stacks: the standard tier charges a 2.95 percent platform fee on top of Stripe's 2.2 percent plus $0.30 per transaction. On $100,000 in annual donations, the platform fee alone reaches approximately $2,950 before processing — and total fees for the year approach $5,000 to $5,500. The Pro tier is a flat monthly fee with a reduced platform percentage, and for organizations above a certain volume threshold it is worth calculating which structure costs less. Donorbox does allow donors to cover processing fees through a clearly presented, non-default option — unlike the tip model, this is an explicit choice the donor makes, which is the approach worth emulating across the sector.
What the fees buy is considerable. Donorbox offers recurring giving on daily, weekly, bi-weekly, monthly, quarterly, and annual cycles — the most scheduling flexibility in this review. Text-to-give, peer-to-peer fundraising, crowdfunding pages, membership tiers, event ticketing, in-person giving via tablet kiosk, stock and cryptocurrency donations, and AI-assisted donor communications are all included. Its direct integrations cover Salesforce, Mailchimp, QuickBooks, Blackbaud Raiser's Edge NXT, Double the Donation, and Zapier. For an organization, whose CRM is central to its donor strategy, that connectivity is what makes Donorbox worth the platform fee.
One operational detail every CDO should understand before committing: Donorbox allows both the donor and your admin staff to cancel or modify recurring gifts. Donorbox markets the donor self-service portal as a benefit — less staff work, more donor control. A CDO who has spent time retaining monthly donors will see the other side immediately: a donor who cancels through a portal without calling is a lost retention conversation. The cultivation moment, the chance to pause rather than cancel, the opportunity to learn why someone is leaving — none of that happens if the donor clicks cancel at midnight and your organization doesn't find out until the monthly report. Before building your monthly giving program around Donorbox, confirm exactly how and when the platform notifies you when a donor self-cancels. That answer should be part of your decision-making process.
If your development program is growing and your CRM is central to your donor strategy, Donorbox is the platform in this review most likely to scale alongside you.
Section 7 of 14 — Is Give Lively Free for Nonprofits?
givelively.org | Nonprofit entity
Give Lively charges no platform fee to eligible nonprofits. The only cost is Stripe's processing fee of 2.2 percent plus $0.30 per transaction at the nonprofit rate, and Give Lively covers its own operating costs through philanthropic support from mission-aligned funders — not through fees charged to nonprofits or tips charged to donors. That funding model makes it one of the cleanest zero-cost options in this review from a donor trust perspective.
What the platform includes is functional and well-designed: donation pages, peer-to-peer fundraising, event fundraising, team fundraising, text-to-donate, and embeddable forms for existing websites. The donor experience is clean, the support documentation is solid, and there is no tip model creating friction at checkout.
The word to pay attention to is eligible. Give Lively is not available to all nonprofits — organizations must apply, be manually reviewed against Give Lively's published values and eligibility criteria, and be approved before they can use the platform. The review takes time, and some organizations are declined. Complete the screening process first before counting on Give Lively as your primary platform. Confirm your eligibility before investing any setup time or building your giving infrastructure around a tool you may not be able to access.
Beyond eligibility, Give Lively's native CRM integrations are limited and its feature set is less complete than Donorbox for organizations that need recurring giving flexibility or in-person tools. For the organizations it fits — established 501(c)(3)s that qualify and want zero fees without the donor tip model — it is a sound choice. Just confirm eligibility first.
Section 8 of 14 — How Does Givebutter Work — and What Does It Cost?
givebutter.com | For-profit, venture-backed — $50 million raised from Bessemer Venture Partners in 2024
Givebutter was named Best Nonprofit Software of 2026 by G2 — a meaningful recognition, though you should note that G2 is a paid-placement platform as described below in the Further Research section. Its growth has been rapid because it combines donation pages, peer-to-peer fundraising, social giving, and event management in a single interface that feels native to the way younger donors already move through the world. Payment options include PayPal, Venmo, Cash App, Apple Pay, Google Pay, ACH, and standard cards — the broadest coverage in this review. If your donors use Venmo and Cash App already, Givebutter meets them where they are.
The pricing requires understanding how the platform's two modes work. When donor tips are enabled, the platform fee is zero — Givebutter retains all tips collected from donors. When tips are turned off, a 3 percent platform fee applies plus standard processing. Givebutter Plus adds $29 per month for automation workflows and deeper reporting. On the cover-the-fees question, Givebutter performs well: 95 percent of donors choose to cover processing fees when prompted, which effectively eliminates processing costs for organizations that enable the feature.
Where Givebutter shows its limits is on CRM and accounting integration. It relies heavily on Zapier for connections to external systems, which adds complexity and cost for organizations with established donor databases. The venture capital backing is worth keeping in mind too — a platform that has raised $50 million from investors has expectations attached to that money, and pricing structures can shift as investor timelines develop. The platform is excellent for what it does today. Whether it remains the right fit in three years is a question worth building into any platform decision.
Section 9 of 14 — What Is PayPal Giving Fund — and What Does It Actually Cost Nonprofits?
paypal.com/us/paypal-giving-fund | IRS-registered 501(c)(3), Federal Tax ID: 45-0931286
PayPal operates two very different channels for nonprofits, and understanding the difference between them is important.
Through PayPal Giving Fund — which is its own registered 501(c)(3) public charity, not a commercial PayPal product — a donor who gives through PayPal's app, eBay, or PayPal's charity search has their donation received by the Giving Fund first and then regranted monthly to the nonprofit. PayPal covers 100 percent of processing costs, so your organization receives the full amount. PayPal has over 400 million active accounts globally, and enrollment lists your nonprofit in PayPal's app and fundraising site, which adds a passive discovery channel that costs nothing.
How to navigate both channels as a CDO: the two processes are sequential, not parallel. Start at paypal.com/charities — create or upgrade to a PayPal Business account, select Nonprofit as the business type, provide your EIN and IRS determination letter, and submit for charity confirmation. PayPal reviews within five business days. Once confirmed, your discounted charity rate of 1.99% + $0.49 applies automatically to your own donate button, and enrollment in PayPal Giving Fund follows automatically — you will receive a welcome email. California-based organizations must complete one additional enrollment form. Once enrolled, your organization appears in the PayPal app, eBay for Charity, Venmo Charity Profiles, and GoFundMe. Your organization may already be listed in the PayPal Giving Fund directory through GuideStar even if you have never enrolled — unenrolled organizations receive donations by check with disbursements taking 75 to 90 days. Enrolled organizations receive funds directly to their PayPal account within 15 to 45 days. Enrollment is free and worth completing regardless of whether you intend to use PayPal as a primary platform.
A word of caution: PayPal Giving Fund settled a 2020 lawsuit in which donors' intended gifts were redirected to different charities when the intended organization did not meet PPGF's criteria. PPGF now displays this policy more prominently, but the redirection risk is real and worth understanding before you promote the PayPal Giving Fund channel to your major donors.
The trade-offs are real. Your organization loses donor data — the relationship is between the donor and PayPal Giving Fund, not your organization, which means no follow-up, no stewardship, and no cultivation unless the donor also gives through a separate channel. Disbursements arrive on PayPal's monthly schedule. And if your charity status lapses, donations can be redirected. For organizations whose development strategy depends on donor relationships, the data loss is the most important of these to weigh.
How to navigate both channels as a CDO: the two processes are sequential, not parallel. Start at paypal.com/charities — create or upgrade to a PayPal Business account, select Nonprofit as the business type, provide your EIN and IRS determination letter, and submit for charity confirmation. PayPal reviews within five business days. Once confirmed, your discounted charity rate of 1.99% + $0.49 applies automatically to your own donate button, and enrollment in PayPal Giving Fund follows automatically — you will receive a welcome email.
California-based organizations must complete one additional enrollment form after confirmation. Once enrolled, your organization appears in the PayPal app, eBay for Charity, Venmo Charity Profiles, and GoFundMe. One practical note: your organization may already be listed in the PayPal Giving Fund directory through GuideStar even if you have never enrolled. Unenrolled organizations receive donations by check, with disbursements taking 75 to 90 days. Enrolled organizations receive funds directly to their PayPal account within 15 to 45 days. Enrollment is free and worth completing regardless of whether you intend to use PayPal as a primary platform. A word of caution: PayPal Giving Fund settled a 2020 lawsuit in which donors' intended gifts were redirected to different charities when the intended organization did not meet PPGF's criteria. PPGF now displays this policy more prominently, but the redirection risk is real and worth understanding before promoting the PayPal Giving Fund channel to major donors.
Through the standard PayPal donate button on your own website, the charity rate is 1.99 percent plus $0.49 per domestic transaction — lower than PayPal's standard commercial rate but not zero. There are two practical concerns: first, PayPal has a documented history of placing holds on accounts that experience sudden donation spikes — meaning that your funds can be frozen at the exact moment you need them most, such as during a year-end surge or an emergency campaign. Second, recurring donations through the standard PayPal channel are limited to monthly intervals only, which significantly constrains your monthly giving program if you want to offer donors weekly, quarterly, or annual options.
Venmo for Nonprofits is available through the same ecosystem and worth adding as a payment option for younger donors — approximately one in ten donors say PayPal or Venmo is their preferred giving method.
PayPal Giving Fund works best as a supplementary discovery channel, not as primary donation infrastructure. The data trade-off makes it unsuitable as a standalone giving platform for any organization that values donor retention.
Section 10 of 14 — What About Network for Good/Bonterra, Classy, and Fundraise Up?
Network for Good / Bonterra Fundraising Essentials (networkforgood.com):
Bonterra acquired Network for Good's technology business in January 2022. The platform rebranded as "For Good" in 2025 and now operates as Bonterra Fundraising Essentials — a for-profit product. The original nonprofit donor-advised fund continues separately at forgood.org. The platform charges a 3 percent transaction fee — with fees that can reach 4.75 percent depending on payment method — plus a monthly subscription of $100 to $300.
Be aware of three specific post-acquisition problems, all documented across review platforms: first, a contact limit threshold that forces you to delete donor records when you exceed 501 contacts — an extraordinary constraint at that subscription price; second, customer service deterioration after the acquisition, with multiple verified reviewers citing difficulty reaching support and unresolved billing disputes; third, pricing opacity that makes it difficult to understand total cost before signing. One Trustpilot reviewer summarized it directly: "Since Network For Good merged with Bonterra, our experience has been terrible. We cannot talk to anyone to resolve issues, and we are being overcharged." The platform gets consistently high marks for ease of use and its all-in-one interface — the usability is real; but be realistic about the cost structure, the contact ceiling, and questionable support responsiveness.
Classy / GoFundMe Pro (classy.org): For-profit, owned by GoFundMe. Enterprise-level platform for large nonprofits running multiple simultaneous campaigns. Pricing is not disclosed on the website and requires a sales conversation — a pattern that signals enterprise-level pricing. Best for organizations with annual fundraising above $500,000 that need campaign management at scale.
Fundraise Up (fundraiseup.com): For-profit. AI-driven donation optimization — smart ask amounts calibrated to each donor's giving capacity, conversion rate improvements through machine learning. Best for organizations with established donor bases that want to maximize revenue per donor visit.
Section 11 of 14 — Can Nonprofits Accept Donations on Squarespace — and Should They?
squarespace.com | For-profit, publicly traded
Squarespace's native donation block is a website feature that happens to include giving functionality, not a purpose-built fundraising platform — and that distinction matters when deciding how much to rely on it.
What it does: suggested donation amounts, recurring giving on weekly, monthly, or annual cycles, a cover-the-fees option, Stripe and PayPal integration, automatic donor receipts, and a Commerce dashboard for tracking. Donors can pay by credit or debit card, ACH bank transfer, Apple Pay, Google Pay, or PayPal. For a small organization doing modest volume, that is a reasonable toolkit.
The cost depends on which Squarespace plan your organization uses. The Business plan carries a 3 percent transaction fee on top of Stripe's 2.9 percent plus $0.30, which adds up to approximately $1,781 in combined fees on $25,000 in annual donations. On the Basic Commerce plan at $28 per month, the Squarespace transaction fee drops to zero, leaving only Stripe's processing fee — and the fee math favors Basic Commerce once donations exceed roughly $7,000 per year.
What Squarespace's native block does not offer is donor management, CRM integration, meaningful tax receipt infrastructure, text-to-give, or peer-to-peer fundraising. An organization that needs any of those things is already beyond what the native block provides. For Squarespace users who want to keep their polished website while gaining proper fundraising infrastructure, embedding Donorbox or Zeffy via a Code Block is the path I recommend — both platforms drop cleanly into any Squarespace page, and the setup is straightforward. For organizations raising under $7,000 annually where simplicity matters above all else, the native block is sufficient.
A note on Stripe: Stripe's nonprofit rate is 2.2 percent plus $0.30 per transaction — lower than its standard rate of 2.9 percent plus $0.30. Many nonprofits pay the standard rate without knowing the nonprofit rate is available. Verify and apply at stripe.com.
PART THREE: THE COMPARISON TABLE
Section 12 of 14 — Which Nonprofit Donation Platform Has the Lowest Fees? A Side-by-Side Comparison
Fees verified as of July 2026. Green cells indicate zero or reduced-cost items. Always confirm current pricing directly with each platform before making any decision.
| Platform | Nonprofit? | Platform Fee | Processing Fee | Tip Model | Cover Fees | Best For | Key Limitation |
|---|---|---|---|---|---|---|---|
| Zeffy (zeffy.com) | No (mission-aligned for-profit) | 0% | 0% | Yes (15% default) | No | Small orgs; budget-constrained | Donor tip model; weak integrations |
| Give Lively (givelively.org) | Yes | 0% | 2.2% + $0.30 | No | Yes | 501(c)(3)s that qualify | Manual eligibility screening; complete first |
| PayPal Giving Fund | Yes (501c3) | 0% | 0% | No | N/A | Supplementary channel | Donor data loss; delayed disbursement |
| Donorbox (donorbox.org) | No | 2.95% | 2.2% + $0.30 | No | Yes | CRM integration; recurring giving | Fee stacking; check donor cancellation notifications |
| Givebutter (givebutter.com) | No | 0%/3% | 2.9% + $0.30 | Yes (optional) | Yes (95%) | Peer-to-peer; social giving | Zapier-dependent integrations |
| Standard PayPal | No | 0% | 1.99% + $0.49 | No | No | Very low volume | Account holds; monthly-only recurring |
| Network for Good/Bonterra | No (for-profit since 2022) | 3%–4.75% + $100–300/mo. | Included | No | Yes | Orgs under 500 contacts | Contact ceiling; service issues; pricing opacity |
| Squarespace Native | No | 0–3% (plan) | 2.9% + $0.30 | No | Yes | Under $7K/year | No donor mgmt or CRM |
| Classy/GoFundMe Pro | No | Undisclosed | Undisclosed | No | Yes | Large orgs; $500K+ | Pricing opacity; enterprise-only |
| Fundraise Up | No | Fee + processing | 2.2% + $0.30 | No | Yes | AI optimization; established donors | Cost; complexity |
| Stripe (stripe.com/nonprofit) | No | 0% | 2.2% + $0.30 | No | Yes | Technical teams; custom forms | No fundraising features |
PART FOUR: HOW TO CHOOSE
Section 13 of 14 — Which Donation Platform Can Grow With Your Nonprofit? A Scalability Framework
Your decision in platform selection must also discern which platform will still be the right fit in three to five years. Choosing a platform calibrated to current volume and complexity, and then being forced to migrate donor data and rebuild donation infrastructure during a busy fundraising season, is one of the more disruptive operational events a development team can experience.
Small organizations — under $100,000 annually: The fee math strongly favors zero or near-zero platforms. Zeffy and Give Lively are the strongest choices. Squarespace's native donation block is acceptable for organizations raising under $7,000 annually. Simplicity is an asset when staff capacity is limited.
Mid-size organizations — $100,000 to $1,000,000 annually: At this stage, the cost of lost donor data, weak CRM integration, and limited stewardship tools begins to outweigh platform fee savings. Donorbox is the strongest general-purpose choice. Givebutter works well for significant peer-to-peer activity. A dedicated CRM — Bloomerang, Little Green Light, or Salesforce Nonprofit — may be needed alongside the payment platform.
Larger organizations — above $1,000,000 annually: Platform fee percentage matters less than analytics quality, CRM integration, and campaign management capacity. Classy/GoFundMe Pro and Fundraise Up are designed for this tier. Maintain exportable donor data and a documented migration plan regardless of platform satisfaction.
Section 14 of 14 — How Do I Choose the Right Donation Platform for My Nonprofit? A Decision Framework
These four questions, answered in order, will narrow the field to two or three appropriate options for almost any organization.
Question One — What is your current annual donation volume and projected three-year volume? Run the fee math on your actual volume for each platform under consideration. The difference is often larger than expected.
Question Two — Do you need your donation platform to connect with a CRM, accounting system, or email marketing tool? If yes, Donorbox's direct integration roster is the strongest in this review. Givebutter connects through Zapier. Zeffy and Give Lively have limited integrations. If CRM integration is essential, the platform fee is worth paying for the connectivity it provides.
Question Three — Is recurring giving a significant priority? Donorbox offers the most flexible options (daily/weekly/bi-weekly/monthly/quarterly/annually). Standard PayPal is limited to monthly only.
Question Four — What does your donor base look like? Younger donors may prefer Venmo or Cash App — Givebutter's payment breadth is an advantage. International donors need multi-currency — Donorbox provides it.
The donor trust consideration: A checkout that surprises donors with unexpected tip requests or fails on mobile damages retention. Platform user experience is a legitimate factor.
The fee math exercise: Fee math, which we discussed in Section 2 is platform fee plus processing fee, minus any cover-the-fees revenue — that is the calculation to run before committing to any platform. Take your actual annual donation volume, calculate the platform fee plus processing fee for each platform at your median gift size, subtract any cover-the-fees revenue at a 50 to 70 percent uptake rate, and compare the net cost at current and three-year projected volume. Share that with all parties involved with making these decisions.
*** Where to Go for Further Research — Independent Vendor Comparison Resources
This white paper reflects one experienced practitioner's assessment of publicly available information. For additional perspectives, here are three other resources to explore:
G2 (g2.com/categories/nonprofit): The sector's dominant software review platform, with more than 90 million annual users and 3 million verified reviews. A significant development worth knowing: in February 2026, G2 acquired Capterra, Software Advice, and GetApp from Gartner for approximately $110 million — consolidating four previously competing review platforms into one company. Cross-checking G2 and Capterra now means reading the same company's data from two different URLs. G2 ratings are meaningful but come with context: vendors pay between $3,000 and $87,000 annually for placement, and reviews are incentivized through gift card programs. Use G2 for breadth and orientation, not as a fully independent source.
TrustRadius (trustradius.com): Acquired by HG Insights in June 2025, it positions itself as a less pay-to-play alternative to G2. It tends to produce longer, more substantive reviews and is worth consulting for a second opinion that operates outside the G2 ecosystem.
TechSoup (techsoup.org): The nonprofit sector's primary technology marketplace and resource hub, worth special mention for two reasons. First, TechSoup's audience is exclusively nonprofits and its vendor relationships are evaluated through a nonprofit lens. Second, TechSoup negotiates donated and deeply discounted software licenses from hundreds of technology companies on behalf of the nonprofit sector, making professional-grade tools available at little or no cost. Several platforms reviewed in this white paper offer discounted or donated access through TechSoup. It is the recommended starting point for any nonprofit beginning a technology evaluation for the first time, both for the research resources it provides and for the cost savings it may unlock.
Conclusion
The platform you choose is important, but knowing why you chose it is just as valuable. The wrong platform will drain your resources and the staff capacity that donor relationships depend on — in fees you never calculated, in data that never synced, in retention conversations that never happened because a donor cancelled through an ancillary portal at midnight. Choose deliberately. Run the fee math calculation, and know which CRM your organization uses and why that matters. And revisit the decision regularly because this landscape will not stay still.
No platform is right for every organization, and no organization should choose a platform without evaluating the specific integrations its development program requires. Also, a common mistake is choosing a platform based on familiarity or a colleague's recommendation rather than a structured analysis of cost, fit, and scalability. Haven't we all been there!
I have attempted to provide a framework for that analysis — the fee vocabulary, the platform profiles, the nonprofit status context, the scalability guidance, and the decision questions — so that every development director and executive director who reads this paper leaves with the information needed to make a confident, evidence-based choice.
The good news is that the donation processing decision is revisable. If a platform is not working, your organization can migrate. The migration is disruptive but survivable — and it is far less disruptive than continuing to lose program revenue to unnecessary fees or donor relationships to inadequate stewardship tools.
May I hear from you? Your Experience Matters
This white paper reviews publicly available information and draws on practitioner experience — but the people with the richest knowledge of how these platforms actually perform are the development directors, executive directors, and operations staff using them every day. Your experience is the data that makes this review genuinely useful.
Which platform is your organization using, and what has it gotten right or wrong? Have you migrated from one platform to another? Is there a platform not covered here that your organization has found valuable? Your feedback will directly inform my next update of this white paper and help organizations that come to this page after you make a better decision.
Please share your experience in the comments section at laurencepagnoni.com — or write through the contact page. Every response is read.
A Note on Use
This white paper is offered freely for educational purposes. Please share it with executive directors, development directors, board members, and operations staff who may find it useful — provided the author's byline remains intact: By Laurence A. Pagnoni, MPA. Reproduction in publications, training programs, or institutional materials requires attribution. Produced July 2026 — to be reviewed and updated annually. All fees and platform details should be verified directly with each platform before any decision is made.
