Square for Nonprofits: Is It a Cost-Effective Payment Solution?

Running a non-profit isn’t easy! 

Nonprofits often operate with limited resources and tight budgets. One area where every mid-sized and small non-profit struggles is payment processing. Whether collecting donations, selling event tickets or accepting membership fees, finding an affordable payment processor becomes the real challenge.

That’s where Square comes in. It’s a popular payment gateway known for its sleek hardware and user-friendly software functionality. Square is perfect for non-profits seeking a secure, easy-to-use, cost-effective solution. 

If you are considering using Square for your non-profit, this guide will help you know about Square’s key benefits, the cost for non-profits and the set-up process.  

Let’s dive in!

Square for non-profit organization

Square is a well-known and trusted payment processing platform that allows nonprofits to accept donations in person and online. It supports various payment methods such as credit/debit cards, mobile wallets like Apple Pay and Google Pay.

With Square, nonprofits can:

• Accepting donations
• Selling tickets to fundraising events
• Managing in-person payments during charity drives
• Creating a donation button on your website
• Offering recurring giving options

Let’s recap a few popular queries people often ask about the Square payment gateway.

Can you accept donations with Square?
Yes, you can accept donations with Square. It enables non-profits to collect donations both online and offline and provides distinctive features that are great for non-profits. However, it doesn’t reduce fees for non-profits.

Does Square offer a discount to non-profit organizations?
No, Square does not offer discounted processing fees specifically for nonprofit organizations. Nonprofits using Square are subject to the same standard transaction fees as other users. However, you can give it credit for its transparent pricing plan, which does not include hidden charges.

Is Square free to use?
Square has no monthly fees for its basic services, but you pay a transaction fee per payment processed.

What payment methods does Square support?
Square accepts credit and debit cards, Apple Pay, Google Pay, and supports ACH and recurring payments.

Does Square integrate with WordPress?
Yes, there are WordPress plugins (like Paymattic and others) that allow you to integrate Square into your site for donations and payments.

Click here to know more about Square payment gateway

Why Nonprofits Should Consider Square?

Nonprofits can consider Square for its outstanding features and flexibility. It’s a game-changer payment processors for nonprofits who want to simplify fundraising efforts and improve the donor experience. Below, we shared key factors that nonprofits can consider when using Square. 

Transparent pricing plan
Square transparent pricing plan simplifies nonprofits’ budgeting decisions. Unlike other payment processors, it has no hidden fees, monthly charges, or long-term contracts, and charges a flat rate per transaction. Some nonprofits may qualify for discounted processing fees by contacting Square directly.

Square regular transaction fees (as of now):

• 2.6% + 10¢ per in-person transaction
• 2.9% + 30¢ for online payments
• 3.5% + 15¢ for manually entered cards

Ease of use
Whether you’re a tech pro or a beginner, Square’s dashboard is intuitive and straightforward. From tracking donations to generating year-end reports for tax purposes, the system is built to keep things simple.

Donation flexibility
Square understands non-profit organisations’ needs and offers various features to be fully functional and run their fundraising activities. From one-time donations to recurring and custom donations, QR codes can scan everything you can do with this payment gateway. It doesn’t stop there; with Square, you can:

• Accept one-time or recurring donations.
• Online and offline donations
• Donation button
• Collect payments via QR codes, donation links, or embedded forms
• Set custom donation amounts or let donors choose their own
• Use POS systems at events or donation booths.

Versatile payment option
Square offers donors a versatile and convenient giving experience. It accommodates supporters’ preferences by supporting various payment methods, including traditional credit and debit cards, as well as contactless and mobile payments.

Fundraising events
Nonprofits often need to host events to raise funds. Square simplifies this whole process, from selling online tickets to accepting in-person payments on the spot. The system makes it easy to sell tickets right from your phone or tablet; there is no need for a cash box or any complicated setup.

Integrations
Nonprofits need to work with various tools to run their fundraising campaign. Square plays well with other tools that nonprofits often use, such as:

• WordPress fundraising plugin (like Paymattic)
• Event management platforms
• Email marketing tools
• Accounting software like QuickBooks

Analytics
Square offers another beneficial feature: analytics and reporting tools. These tools enable non-profits to get insights into transaction trends through various reports. This information later helps to make data-driven approaches that are ultimately better for non-profits, improving fundraising strategies and financial management.

Automatic receipts & record keeping
Square automatically sends supporters thank-you emails after they complete their transactions. These receipts are customizable; you can insert your organization’s name and branding on them. On your end, Square also tracks all your transactions, which will help you monitor your donation progress and generate reports.

Click here to know ‘How to collect Square subscription payments with WordPress’

Where Square falls behind

While Square is obviously a good option for non-profits, this payment solution may still fall behind. We already shared the benefits of using the Square payment gateway, and now we will discuss some cons. Both pros and cons help you make an informed decision about choosing Square for a non-profit.

High transaction fees
We already know that Square provides features for non-profit organizations, which makes it a good option. However, many non-profits run their operations on a limited budget, so Square may not be a cost-effective solution. Square’s transaction fees are pretty high compared to other payment processors, and don’t provide any discount for nonprofits.

Limited donor management features 
As Square is not built specifically for non-profits, unlike other dedicated non-profit platforms, so it does not offer all the necessary donor management features. You’ll need third-party tools or integrations to get more donor management features, which add extra steps and costs.

Funds holding period
Square holds funds for a specific period, especially if a sudden increase in donation volume or activity seems unusual to their system. This delay in accessing funds may pose challenges to non-profits that need fast access to funds for urgent causes or campaign-related expenses.

Limited offline functionality 
Square offers offline payment functionality, but it’s somewhat limited. It can’t properly support a non-profit that runs its fundraising campaign offline or in a remote area, and it can disrupt donation collection or ticket sales at the worst possible time.

Poor customer support 
Customer support is another area where Square receives mixed reviews. Many users find it challenging to reach live support quickly, and response times can be slow, especially for urgent payments or account verification issues. Nonprofits dealing with time-sensitive donations might find this frustrating.

Bonus tips: Square alternative for non-profit

Here, we create a payment gateway comparison table that compares Stripe, Square, PayPal, Razorpay, and Authorize.net, comparing the most relevant criteria that help non-profits choose the right platform. 

Key takeaways:

• Stripe is great for tech-savvy nonprofits needing advanced customization and global reach.
• Square shines for in-person events and simple donation setups, but lacks nonprofit discounts.
• PayPal is universally accepted, easy to use, and does offer nonprofit discounts.
• Razorpay is ideal for nonprofits and businesses based in India.
• Authorize.net is robust and enterprise-friendly, but it is often best for those with technical teams.

Click here to know ‘Is Stripe a great choice for nonprofits?’

Is Square the best option for a non-profit?

Obviously, Square can be an excellent choice for your nonprofit organization. It provides a whole ecosystem that helps you manage donations, track fundraising performance and grow your mission. If you have the budget and are looking for a secure, hassle-free setup, go with this payment processor. It’s designed to bring more ease and transparency to your fundraising journey.

In this blog, we also discuss Square alternatives. If you want to explore more options, you can take a look at them; these different payment processors offer distinct advantages depending on your needs.

And yes, before saying goodbye, one thing: Paymattic offers 13+ payment gateways, including Stripe, PayPal, Square, authorize.net and more, enabling you to raise funds globally without any boundaries. If you’re looking for a fundraising solution tailored to both donations and payments, with all the fundraising features packed into one affordable platform, try Paymattic. We are confident that you’ll definitely love it.