Choosing the right payment processing solution can shape how easily your nonprofit can fundraise and manage donations, especially when every dollar counts. For small, grassroots organizations working with tight budgets, limited staff, and close donor relationships, it’s helpful to understand how different tools are designed and who they’re best suited for.

If you’re wondering whether Square is the right fit for your nonprofit, this guide walks you through the key considerations. We’ll cover pricing, features, potential limitations, and what to keep in mind as you evaluate whether it aligns with your current and future needs.

• What is Square?
• Square donation processing limitations
• How much does Square cost nonprofits?
• Square Donation Fee Calculator - How much are you losing to Square fees?
• Evaluating Square for small nonprofits: Is it a fit?
• Square Pros and Cons for Nonprofits
• Key features of Square for nonprofits
• Nonprofit payment processor comparison
• Benefits of using Square for collecting donations
• Square for nonprofit donations setup guide
• Checklist: What to look for when choosing an online payment system to get donations
• How to switch from Square to Zeffy for nonprofit donations
• Square vs Zeffy for nonprofits: Which is better?
• Square for nonprofits: FAQs

‍

What is Square?

Square is a large-scale financial services platform built to support small businesses. It was founded by Jack Dorsey and has grown into a widely used payment processing solution. Square processes billions of dollars in transactions annually as a great option to collect payments in person and online. The Square ecosystem of tools includes mobile apps and card readers to turn a phone or tablet into a mobile point-of-sale (POS) system.

‍

Can nonprofits use Square?

Nonprofits can use Square to collect donations, even though the platform is primarily designed for businesses. It can offer a straightforward way to process payments from supporters, particularly for organizations looking for flexible, easy-to-use tools without a complex setup.

We’ll cover donation processing limitations, pros, and pricing considerations below to give you the full picture and inform decision-making.

‍

‍

Square donation processing limitations

Processing fees

Every payment and card transaction through Square includes a processing rate of 2.6% + $0.15. While the platform offers a free plan to get started, these transaction costs still apply and can add up over time, especially for organizations processing a high volume of donations. Some users note that setup and fees can require a closer look before committing:

There are a lot of steps to set up new clients. Also, the fees are a bit on the high side.
— Michael L.

Square does not currently offer a nonprofit-specific discount on processing fees, which is something many organizations consider when comparing platforms. Some nonprofits choose to compare platforms that offer alternative pricing models, especially if minimizing fees is a top priority.

‍

Limited customer support

Square’s customer support is primarily delivered through phone support, online chat, help articles, and self-service resources. Availability varies by which plan you’re using, and free plans typically work with phone support within certain business hours. While online support can be sufficient for straightforward questions, it may feel limiting for organizations that need more hands-on or time-sensitive support. Some users report challenges navigating support channels:

Tech support is terrible. First they will get into the retail vs Web side of the house discussion, then once you get the right person, they never seem to know what features are or how to solve problems.
— John C.

‍

How much does Square cost nonprofits?

Square’s free plan makes it easy for nonprofits to begin accepting donations without upfront costs. However, understanding the full pricing structure, including processing fees and optional upgrades, can help clarify the total cost over time.

Square also offers plan upgrades that come with additional costs:

• Square Plus: $49/month + processing fees
• Square Premium: $149/month + processing fees
• Square Pro: Custom pricing + processing fees

‍

Square processing fees

It’s important to note that Square does not currently offer discounted processing rates specifically for nonprofits. All plans are subject to the following processing fees:

*Below fees reflect standard Square pricing for the Free plan. Organizations with a custom quote plan may be eligible for negotiated rates.

‍

‍

It can be helpful to understand how processing fees add up in a real scenario. For example, if a nonprofit raises $10,000 at a fundraising event, with about 60% of donations collected in person and 40% of donations collected online, Square’s standard processing rates would result in approximately $309* in total fees. *$165 from in-person donations (at 2.6% + $0.15 per transaction) and $144 from online donations (at 3.3% + $0.30 per transaction), assuming about 100 total donations. In this case, the organization would receive roughly $9,691 after fees. For some nonprofits, that may feel like a reasonable tradeoff for ease and flexibility, but for others working with tighter margins, it may be a deciding factor. Over a year, that same fee structure could mean thousands of dollars redirected away from your mission.

‍

‍

Square additional costs for nonprofits

Beyond processing fees, some features within Square’s ecosystem may come with additional costs depending on how your organization uses the platform:

‍

‍

Self-service iPad kiosk: $149 Square terminal: $299 Square handheld: $399

Square register: $899

These optional tools can be helpful for organizations looking to expand their outreach or operations, though they may not be necessary for every nonprofit.

‍

Square Donation Fee Calculator - How much are you losing to Square fees?

Every nonprofit’s donation mix looks different. Use this calculator to estimate how much you could pay in Square fees based on how your supporters give.

‍

‍

This estimate is based on Square’s standard processing rates and can help you understand how fees may scale as your fundraising grows.

‍

Evaluating Square for small nonprofits: Is it a fit?

Square is designed primarily for small businesses, which means its features and workflows are not always tailored specifically to nonprofit fundraising. For some organizations, this may not be a barrier.

For those with more complex donor engagement needs, it can require additional tools or workarounds to provide a donor experience that drives acquisition and retention.

Here are a few considerations for small or grassroots nonprofits:

• Not built specifically for nonprofits: Features like tax-deductible receipts or donor management may require customization or external tools
• Recurring donation experience is not nonprofit-specific: Square supports recurring payments, but the experience is still more general-purpose
• No nonprofit-specific CRM: Without simple access to fundraising-native fields, tracking donor relationships or giving history may require integrations
• Transparent but standard fees: Fees are clearly outlined, but are not reduced for nonprofit use

Every percentage point taken out of a donation matters when buying supplies, funding a program, or covering monthly overhead. After saving $3,456 in fees and raising $69,117 by using Zeffy (built to support smaller nonprofits without the cost), Westerner Band Boosters shares:

It came down to nickels and dimes. You know, when we’re trying to scrape every penny we can to get these kids the things they need, like functioning instruments, savings in fees make a huge impact.
— Kelly, Volunteer Treasurer

Some organizations choose to explore platforms that are designed specifically for nonprofit fundraising, particularly if minimizing fees or accessing built-in donor tools is a priority. We’ll compare these options in more detail below.

‍

‍

Square Pros and Cons for Nonprofits

Square can be a practical payment solution for many organizations. At the same time, its business-first design means there are a few tradeoffs to consider for nonprofit fundraising. Here’s a simple breakdown to help you evaluate fit at a glance: Square for nonprofits: pros vs cons

‍

‍

Key features of Square for nonprofits

Square online donations

Square allows donations to be added as items for sale on a website. Square Payment Links can also be shared with customers and donors to complete a transaction from any device.

Payment options accepted:

• One-time credit/debit card payments
• ACH bank transfers
• Apple Pay, Google Pay, and Cash App Pay
• “Buy now, pay later” (Afterpay) for merchandise sales or tickets

Square allows donations to be set up similarly to products or services, making it possible to accept contributions through a website or shared payment link. This setup can work well for organizations looking for a simple way to launch a donation collection quickly. It’s worth noting that recurring donations are built as a more general-purpose tool through Square payment links and are not specific to nonprofits or the donor experience.

‍

Square point of sale app

Square’s point-of-sale system enables nonprofits to accept in-person payments at events, fundraisers, or other gatherings. Using mobile card readers or terminals, a nonprofit can collect donations on-site and follow up with supporters through invoices or digital payment options. This flexibility can be especially useful for events or hybrid fundraising efforts that combine in-person and online giving. That said, if you're looking for an even simpler in-person payment option, Zeffy’s Tap to Pay app (100% free-always) allows supporters to tap to pay directly from their phones without needing a card reader.

‍

‍

Donation settings

Nonprofits can establish “Donation Items” in Square with the following customizations:

• A detailed title, description, and photo
• Suggested gift amounts
• Text modifiers for customizations like donating in memory

Funds can be transferred to a nonprofit’s bank account instantly (with a fee) or the next day (free). That’s helpful if you have a tight cash flow, such as when covering upfront costs for an event and needing donor revenue quickly.

‍

Square analytics tools

Square Analytics offers nonprofit organizations real-time insights into their organizational health as an advanced payment platform. A simple Square dashboard shows supporter, transaction, and organizational insights.

Your Square dashboard surfaces data around:

• Managing transactions from online donation forms
• Fundraising event registrations and ticket sales
• In-person donations through the Square reader or POS app
• Recurring or membership gifts
• Payment details such as dates for a debit card transaction or when a donor’s credit card expires
• Merchandise sales
• Revenue from fundraising strategies

For nonprofits, this means staff or board members can instantly review how much was raised during a campaign or event, helping inform future planning.

‍

Donor data collection

A nonprofit organization will gain a customer directory of donors to segment into audiences by relevant information such as:

• Loyal or repeat supporters
• Passive supporters
• Lapsed donors
• Event attendees

Square's email and text templates help you reach different segments with relevant appeals. This can be useful for building a basic donor database and segmenting major gift prospects or frequent event attendees.

Important to note: Square does not distinguish donors from customers, and there’s no field for donation intent, campaign designation, or giving frequency. Square’s customer data tools are flexible, but they’re built for general customer management rather than nonprofit donor stewardship.

‍

Automatic receipts

Any donation, registration, or merchandise purchase triggers an automatic confirmation to supporters through Square. The convenience eliminates the extra step of connecting to a customer relationship management (CRM) or email service.

Supporters can also turn off receipts as they would unsubscribe from emails. Receipts include basic transaction info such as:

• Item name
• Amount
• Payment method
• Your organization’s name and contact info

You can customize receipt footers with a message like a thank-you note or tax ID number, which makes it easy to acknowledge donor contributions in real-time, especially for one-time online donations or in-person events.

Automatic receipts are helpful for donors needing proof of payment for reimbursement or tax purposes, although Square does not automatically generate IRS-compliant tax receipts with donation language.

Let’s compare for reference:

‍

‍

Zeffy’s built-in tax receipts can save small teams time and energy, especially during high-volume seasons like Giving Tuesday or year-end appeals.

‍

‍

Fast transfers

With Square's standard transfers, nonprofit organizations can receive money in a chosen bank account within 1-2 business days.

Square also offers upgrades for quicker transfer options:

• Instant transfers hit external bank accounts on demand with the speed of apps like Zelle, for a fee of 1.75% of the amount transferred.
• Same-day transfers hit external bank accounts on a customizable, automated schedule with a fee of 1.75% of the amount transferred. Business days may vary.

‍

Square integrations for nonprofits

Square connects with a range of tools to support accounting, marketing, and website management. These integrations can help streamline workflows, though some may require third-party setup.

‍

Common Square integrations

‍

Nonprofit payment processor comparison

Some nonprofits may find that they need additional features or pricing structures that are more tailored to fundraising than Square can offer. In the next section, we’ll compare Square with other payment processors designed specifically for nonprofits to help you evaluate which option best fits your goals.

‍

How does Square compare to other low-cost donation platforms?

‍

Is Square or PayPal better for small nonprofits?

Both Square and PayPal are well-known options for collecting donations, but they’re not exactly tailored for nonprofits. PayPal offers nonprofit-specific features, such as customizable donation buttons and recurring giving, while Square excels with user-friendly tools for in-person donations.

That said, both platforms charge transaction fees, which can eat into your fundraising total.

‍

What is the best payment processor for small nonprofits?

If you’re looking for a solution built just for nonprofits, with features like event ticketing, donor management, and zero processing fees, platforms like Zeffy may offer a better fit for long-term growth.

‍

‍

‍

Benefits of using Square for collecting donations

Flexible user interface

The simple app allows anyone on your team to use Square. A few clicks help users collect donations, contact donors, and manage donation activity. A free Square reader comes with your account, with the option to purchase more as needed.

‍

Multiple ways to accept donations

Nonprofits can offer donors more ways to give with Square. Flexible options help you capture donors with any payment preference they may have.

Square currently supports the following payment options:

• Credit and debit cards
• Automatic Clearing House (ACH) bank account transfer payments
• E-wallet payments (Apple Pay and Google Pay)
• Cash App
• Afterpay financing for large purchases
• Cash and paper checks for offline gifts

‍

Data and payment security

Card numbers, magnetic stripe data, and security codes are not stored on Square client devices, and Square uses encryption/PCI-compliant processing.

‍

Square for nonprofit donations setup guide

Square for nonprofits makes it easy to get started. Below is a Square donation processing guide to help you prepare and quickly use nonprofit-specific tools.

‍

Gather required information

You will sign up for Square with one individual main account holder, not an organization. Your choice of account holder will determine the information you gather in the preparation phase.

Once you designate your nonprofit's account holder, you can gather the following information:

• Full legal name
• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
• Date of birth
• Home mailing address

‍

Create a Square account

You can create your account at squareup.com where you’ll click on Get Started.

From there, you’ll follow the steps below to activate the account:

• Enter a preferred email address and confirm it, along with a secure password.
• Click Create Account.
• Choose the nonprofit/charitable organization category if prompted
• Enter your nonprofit and personal account holder information and click Continue.
• Answer a few questions to verify your identity and click Continue.
• Enter your phone number or email address.
• Square will send a link to your mobile device to download the Square Point of Sale app.
• Tap the email or text message link to download the app to your device(s).

Once your account holder downloads the Square app, you can complete the activation process. Nonprofits can then begin collecting donations right away.

Ease of use was the biggest draw to this product. Everything was a breeze to setup and was able to start selling our products within minutes of uploading photos and descriptions, couldn't be easier.
— Eric A.

‍

Set up donations with Square Payment Links

Once your Square account is set up, you can begin accepting donations quickly and easily using Square Payment Links that allow you to collect donations online without needing a full website.

To create your donation links:

• Navigate to Orders & Payments, Invoices & Payments, or simply Payments > Payment Links in your Square dashboard.
• Click Create Link, then select Accept a donation and click Continue

To customize your link:

• Add a title that supporters will see (e.g., "Support Our Summer Youth Program")
• Choose a frequency (one-time or recurring)
• Optionally, add a description and upload an image to create visual appeal
• Toggle on Set donation goal and enter the amount you're aiming to raise and a deadline to create urgency (e.g., to meet a matching gift deadline)

”Our website looks great, runs well and gives a great impression to our guests. Combining the ease of use with the complete integration into our Square POS systems makes updating automatic.” - John L.

‍

‍

Checklist: What to look for when choosing an online payment system to get donations

Experience is everything when it comes to your online fundraising efforts. Your donors aren’t just customers but passionate supporters seeking a connection with a cause.

Choosing an online payment system is about the least friction in your donors’ experience. Equally as important is making sure every dollar possible goes to your mission. Nonprofits should consider the following items when choosing an efficient online payment system.

✅ Nonprofit Costs Are you confident about transaction fees, plan fees, and expenses for functionality you may need in the future?

✅ Ease of donations Have you looked at the platform’s donation experience through the lens of a donor? Can you create a donation form for completing transactions without friction?

✅ Branded experiences Do you have the right amount of customization options? Can you add a personal touch with custom questions and language preferences?

✅ Donor management and relationship building Can you access donor information and transaction history in one place? Can you collect donor information and ensure it's available whenever you need it?

✅ Relationship building Is it user-friendly to segment donors and create tailored engagement? Do you have automatic emails that go out after a donation?

✅ Diversified online fundraising efforts Does the platform support peer-to-peer fundraising, event management, and recurring donations? Is it easy to track and manage donations across campaigns?

✅ Future growth Can you embed your donation form on your website and social media?

‍

How to switch from Square to Zeffy for nonprofit donations

Small nonprofits may need the simplicity that Square offers without the cost, and switching from Square to Zeffy is pretty straightforward. Start by creating a free Zeffy account and setting up your donation forms, events, or campaigns using their nonprofit-specific tools.

Once you're ready, update any donation links on your website, email newsletters, and social media to point to your new Zeffy pages. You can also inform supporters about the switch so they’re in the loop and excited that 100% of their gift goes directly to your mission. Zeffy even offers support to help with the transition if you need a hand.

‍

Square vs Zeffy for nonprofits: Which is better?

Zeffy is a 100% free alternative to Square. The fundraising platform is built for nonprofits by a team that is available whenever you need it.

Square charges platform fees. Zeffy doesn’t. Explore Zeffy's 100% free donation tools

‍

Square for nonprofits: FAQs

‍

‍

‍

‍

‍