A Guide to Nonprofit Online Payment Processing

Non-profit organizations are in a constant battle to raise much needed funds and provide support to a multitude of groups within our communities. The events of the last year and a half have only served to heighten both the need and the struggle. As such, it’s critical for these organizations to be able to provide flexible, seamless and secure ways for their prospective donors to make donations wherever and whenever they choose. The days of accepting cash and cheque donations are fading as digital mobile and online options take hold. With this in mind, nonprofits need to be innovative and accommodating to offer preferred donating methods to their constituents. Organizers and coordinators should do their homework and select a nonprofit payment processing system capable of accommodating all of the different online and offline channels through which donor funds may be collected.

There are a number of things to consider, when reviewing point of sale systems and online payment processing for nonprofits, including:

• Point of Sale (POS) hardware;
• Online payment processing;
• Types of payments;
• Payment processing fees;
• Mobile and online payment software;
• Donation management and reporting software;
• Consumer and organizational data security;
• Customer service and support.

This guide will help you navigate each of these areas and answer many of the questions you may have about which payment processing system is the best fit for your non-profit.

Point of Sale (POS) Hardware

The type of point of sale payment terminal you choose will largely depend on the types of fundraising events or campaigns you plan to run and/or how you expect to engage with your prospective donors. There are a variety of options available from desktop devices to mobile handheld units and standalone unattended donation kiosks.

Countertop Devices

Point of Sale systems which reside on a countertop, desktop or table are most appropriate for those events where participants are required to submit payments when they register or check-in to an event. For example, some art festivals or ethnic events collect a small entrance fee that goes towards their nonprofit’s fund. Modern POS systems are a far cry from traditional, bulky cash registers. Rather, these wireless units are typically small, so you can maximize counter space. As charity events can quite often get hectic, you will want to choose a device designed with speed and efficiency in mind. Event participants will appreciate a seamless check-in and payment experience, which may in turn encourage them to register for more nonprofit events and/or make additional donations.

Event coordinators, organizers and volunteers will likewise appreciate a point of sale system for nonprofits which is easy to understand and operate; particularly when there is a growing line of potential donors waiting to be registered.

Mobile Devices

For some events, you may also consider mobile options for additional convenience and flexibility.

One option is a multi-function handheld payment processing unit, which can be used to collect entrance fees from attendees or take donations on the fly. Mobile devices connected to WiFi or LTE networks can include bar code readers for quick registration and can accept payments via tap, swipe or chip methods. These types of devices are particularly useful in helping to mitigate long lineups at larger events. Volunteers, armed with mobile units, can engage and interact with event participants in a more convenient and casual way whenever they are, thereby increasing the opportunity and likelihood of positive experiences and subsequent donations.

Alternatively, payments can also be accepted via virtual payment processing solutions made available through web browsers on mobile phones. Powerful virtual POS terminals can be configured for use by event staff in the field, which operate much like the mobile handheld units, to accept debit or credit card payments. This is a cost-effective way for nonprofits to enable mobile payments, which can be integrated with other offline and online payment processing systems as needs grow.

Unattended Payment Kiosks

Did you know that MONEXgroup offers a trademarked Tap to Donate^TM solution that encourages donors to contribute in a faster, cleaner and safer way? Unattended payment kiosks equipped with Tap to Donate^TM offer a unique way for nonprofits to build brand awareness, extend their reach, and accept and process donations at events or in relevant, high-traffic locations 24x7x365. Kiosks can be custom branded and configured to display interactive branded content about the nonprofit for potential donors to interact with, whenever they choose. Some prospective donors actually prefer the option to simply and privately donate through these types of devices, while others may be drawn in and donate on impulse. Many organizations have found Tap to Donate^TM to be a highly effective way to connect with and grow their audience and donation base.

Central Network Connectivity

Regardless of the hardware solution you choose, you will want to ensure that it is connected via a common, secure network and backend system, so any data captured will reside in one central repository for quick, accurate tallying and reconciliation, as well as to reduce the risk of data transfer errors.

Online Payment Processing

Nearly every nonprofit organization has needed to adopt an online presence and the ability to accept donations via their website or sell items through an online store or eCommerce portal in order to extend their reach and fundraising potential. It’s safe to say that younger, tech-savvy consumers are more likely to donate if there is an online option available. According to CanadaHelps.org, online giving in Canada increased by 86% year over year in 2020, which is not at all surprising based on the recent pandemic circumstances. Secure, reliable eCommerce payment gateways or hosted checkout solutions are crucial to a positive, successful and profitable online experience.

For simplicity, you should look to work with a single nonprofit online payment processor, which can coordinate taking both offline and online payments. You should be able to have all transactions, regardless of the channel, be visible and accessible for analysis and reporting via one source for increased efficiency and accuracy.