Nonprofit Payment Processing Fees: What You're Really Paying

On the published rates below, card processing costs a nonprofit between about 2% and 8% of each donation, and the gift size decides where in that range you land. As of October 2026, PayPal's charity rate is 1.99% + $0.49 per domestic transaction, and Stripe's nonprofit rate is reported as 2.2% + 30¢. Both are lower than standard pricing, and both require an application. This guide shows the rates, the effective-rate math, and a worked example for a $70,000 donation year.

We don't sell payment processing. Every rate below links to its source.

The rates

Processor	Standard US rate	Nonprofit rate	Condition
PayPal	2.89% + $0.49 (Donate button); 3.49% + $0.49 (Checkout)	1.99% + $0.49 domestic; international adds 1.50%	Confirmed charity; apply and be pre-approved
Stripe	2.9% + 30¢ cards; ACH 0.8% capped at $5	2.2% + 30¢ non-Amex; Amex 3.5% (per Fundraise Up)	80% or more of volume from tax-deductible donations
Square	2.6% + 15¢ in person; 3.3% + 30¢ online (Free plan)	None published	Custom pricing above $250,000 a year
Zeffy	n/a	$0 to the nonprofit	Funded by optional donor tips

One caveat on Stripe. Its help center confirms the program and the eligibility rules, but it doesn't publish the discounted rate. The 2.2% + 30¢ figure comes from Stripe partner documentation. Confirm your rate with Stripe support before you rely on it.

Stripe's 80% test is stricter than it sounds. Memberships, tuition, ticket sales, registration fees and auction payments don't count as donations. A gala-heavy organization may not qualify. Stripe reportedly doesn't apply the rate retroactively, so apply before your busy season.

Effective-rate math

The effective rate is the total fee divided by the gift:

Effective rate = (percentage × gift + fixed fee) ÷ gift

For a $25 gift at PayPal's charity rate: (0.0199 × $25 + $0.49) ÷ $25 = ($0.4975 + $0.49) ÷ $25 = $0.9875 ÷ $25 = 3.95%.

The fixed fee is why small gifts are expensive. Here is the same calculation across common gift sizes:

Gift	PayPal standard (2.89% + $0.49)	PayPal charity (1.99% + $0.49)	Stripe standard (2.9% + 30¢)	Stripe nonprofit (2.2% + 30¢)
$10	$0.78 (7.79%)	$0.69 (6.89%)	$0.59 (5.90%)	$0.52 (5.20%)
$25	$1.21 (4.85%)	$0.99 (3.95%)	$1.03 (4.10%)	$0.85 (3.40%)
$50	$1.94 (3.87%)	$1.49 (2.97%)	$1.75 (3.50%)	$1.40 (2.80%)
$100	$3.38 (3.38%)	$2.48 (2.48%)	$3.20 (3.20%)	$2.50 (2.50%)
$250	$7.72 (3.09%)	$5.47 (2.19%)	$7.55 (3.02%)	$5.80 (2.32%)

Two patterns stand out. Stripe's lower fixed fee wins on small gifts, while PayPal's lower percentage wins on large ones. And the nonprofit rates save roughly 0.7 to 0.9 percentage points on every gift. That sounds small, but it adds up quickly.

ACH (bank transfer) changes the picture for large gifts. Stripe's ACH Direct Debit is 0.8% capped at $5, so a $250 gift costs $2.00 and a $1,000 gift costs $5.00 (0.8% would be $8, but the cap applies). On a $1,000 card gift at Stripe's nonprofit rate, the fee would be $22.30.

Worked example: a $70,000 year

Say your organization receives 1,000 online gifts in a year:

• 600 gifts of $25 = $15,000
• 300 gifts of $100 = $30,000
• 100 gifts of $250 = $25,000
• Total: $70,000

Stripe, standard rate: 600 × $1.025 = $615.00; 300 × $3.20 = $960.00; 100 × $7.55 = $755.00. Total $2,330.00 (3.33% of $70,000).

Stripe, nonprofit rate: 600 × $0.85 = $510.00; 300 × $2.50 = $750.00; 100 × $5.80 = $580.00. Total $1,840.00 (2.63%).

Saving from one application: $2,330 − $1,840 = $490 a year.

PayPal, charity rate: 600 × $0.9875 = $592.50; 300 × $2.48 = $744.00; 100 × $5.465 = $546.50. Total $1,883.00 (2.69%), compared with $2,513.00 on PayPal's standard donation rate (600 × $1.2125 + 300 × $3.38 + 100 × $7.715), a saving of $630.00.

At this gift mix the two nonprofit rates land within $43 of each other. Applying for the rate on the processor you already use matters far more than switching processors. If 20% of the PayPal volume came from international donors, the extra 1.50% on $14,000 would add $210, widening Stripe's lead to $253.

These figures cover processing only. If a donation platform charges a platform fee on top (many do), add it in. The free audit runs this calculation on your actual processor and platform fees.

Zeffy: zero fees, with a trade-off

Zeffy charges the nonprofit nothing. It says it covers transaction and card fees, and it funds itself through optional tips that donors are asked to add at checkout. In the example above, that would turn $1,840 to $2,330 of annual fees into $0.

The trade-offs:

• The tip prompt. Donors see a request to tip Zeffy. Some organizations dislike this because it adds a step and can feel like a charge on top of the gift. Donors who tip pay more than their gift, though the gift itself reaches you in full.
• Migration. You'll need to rebuild donation forms, event pages and website embeds. We haven't verified how existing recurring donations transfer, so ask Zeffy before you move monthly donors.
• Eligibility. In the US you need an EIN and a bank account in the organization's name. Zeffy says 501(c)(3) status isn't required.

Zeffy suits organizations whose donors are comfortable with a tip request and whose fees are a noticeable share of the budget. If you'd rather keep a fee-free checkout for donors, the PayPal or Stripe nonprofit rate is the conservative choice.

How to cut processing fees this month

1. Apply for the nonprofit rate on every processor you use. PayPal needs charity confirmation. For Stripe, contact support with your EIN or IRS letter and confirm the 80% donation volume.
2. Push large gifts to ACH, where the $5 Stripe cap makes big gifts cheap to process.
3. Encourage fewer, larger recurring gifts over many small ones. The fixed fee is charged per transaction.
4. Compare Zeffy if the tip model fits your donors.
5. Re-run the math yearly. Rates change, and your gift mix does too.

Churches using dedicated giving apps should also read church giving platform fees, since those platforms price differently. For software subscriptions, see the nonprofit software discounts hub.