Online Donation Collection via ACH for Non-Profits

Do you know why some non-profit organizations receive more funds than others? 

While they receive more donations and are actively marketing their crowdfunding efforts, they also benefit from better fund transfer solutions to their patrons. With the dynamic technological shift, more people are shifting towards digital payment solutions, and thus, non-profits embracing the new payment solutions help raise more funds for their cause. Read this blog if you run a non-profit and want 2023 to be a good year for your organization to learn about online payment methods and how you can set one up for yourself.


5 Popular Online Donation Collection Methods


eChecks enable patrons to authorize a one-time or recurring payment directly from their bank account. Non-profits can rely on a steady stream of funds for their humanitarian causes through recurring donations. These donations, which can be set up to occur weekly, monthly, or annually, can be quickly processed through payment gateways that support regular payments. This allows organizations to receive donations from their most dedicated donors automatically.

According to, eCheck payments are the most secure online payments with several advantages, such as low transaction rates, public-key cryptography, and digital signature. 

QR Codes

QR payment technology allows non-profits to accept payments from digital wallets and mobile phones. You display the QR codes on your digital and print media that donors can scan through their smartphones to log in and donate.

Payment Processing Software

Online payment processing tools like Hosted Payment Portals are built-in subscription-based services that integrate with your website, and online fundraising campaign links to handle the backend operations. Each payment processor has its pros and cons; these already-built products offer limited autonomy, flexibility, and customization to the users. So, go through the details, acceptable payment methods, and pricing before subscribing. 

Credit Cards

A National Automated Clearing House (Nacha) study reveals that ACH and credit card payment portals have increased contribution levels of online charitable donations in the United States. eCommerce is partially responsible for this rapid adoption of credit cards. 

As a non-profit organization, allow donors to transfer funds through their credit and debit cards to simplify their checkout journey. The only disadvantage is the high transaction fees ranging from 2-4%, which brings us to our seamless payment method.

ACH Transactions

ACH payments are among the most underrated yet profitable options for small businesses and non-profits. They are fast, secure, and direct. The ACH payment processing portal enables electronic payments by allowing customers to transfer funds from one account to another via the online ACH network. Financial institutions process ACH payments as direct electronic fund transfers in batches daily. 

Unlike credit cards, they have a menial transaction fee, which may range from $.20 to $.75 per transaction, allowing ACH integrations and can help non-profits to save a lot of money lost in transaction fees. 

Let's understand it with an example.

Suppose a donor pays you $1000/month. 

Let's say the transaction fee on credit cards is 2%. How much will you be giving away as a transaction fee?


If you have ten donors with $1000/month, you pay a monthly fee of $200. 

Over a year, you lose $2400.

Non-profit organizations that accept ACH payments save money on processing costs that can be used for a better cause. 

Learn how to set up ACH for payment processing with a step-by-step guide. 

Automate Payments Collection with Powerful Recurring Payment Solutions


Benefits of Adopting ACH Payment Solutions

Besides lower transaction fees, there are other advantages to ACH which make it the better choice for you:

Speed & Convenience

With an ACH-integrated payment gateway, you can save donor information once, whether for one-time or recurring payments. This direct transfer relieves you from worrying and waiting for paper checks to process.


ACH donations offer more security than traditional paper methods. The information is encrypted and tokenized during the transaction. Additionally, a transaction is not processed until the account holder authorizes it, thus eliminating the risks of fraud and error. However, if someone gets trapped in a fraudulent transaction, ACH processors allow you to reverse it if you report the activity within 60 days to the financial institution. 


Even $30 can make a difference over time; however, collecting $30 every month can be a hassle. With ACH, you automate the process. By setting up a one-click payment system for your members and recurring donors, you're set up for a lifetime, making the payment collection system effortless. Donors do not have to fill out checks and donation forms and receive reminders all the time.

Even with all these advantages, only a few companies, non-profits, and donors integrate the ACH payment gateway into tier models because of unfamiliarity with the platform. But it offers you the first-mover advantage. With the right solution providers, you don't have to worry about the integration and operation of ACH into your existing models. 

Download our Guide on 6 Strategies to Optimize Your ACH and Merchant Services  Account


How to Maximize Results Through Integrated Gateway Platforms?

While integrated gateway platforms empower non-profits even without a web presence by allowing them access to a generic payment portal to host social media, email, and SMS text-to-donate campaigns. Partnering with Nacha-Preferred online payment solution providers will offer you additional features to maximize the reach and results of your campaigns, for instance:

SMS Text-to-Donate Facility

Monthly recurring donors give 42% more than one-time donors. However, most donors need help remembering the due date and entering information every time they donate. Engage with your donors actively to stay in touch with them and encourage them to contribute more often with SMS Payments technologies. 

Cash Discount Programs

Since ACH allows non-profits to save on transaction fees, a cash discount program incentivizes donors to help you with your charitable cause. Select the solution provider that sets up the cash discount program for your non-profit to increase donations.

Email Acknowledgement Receipts

The collection process involves generating and documenting receipts for each patron. Select solution providers who integrate tools with your accounting software to automatically generate and distribute donation receipts and develop a streamlined billing process.

Download a Full Catalog of Payment Solutions for Non-Profits


Set Up Your ACH System with iCG

Good humanitarian deeds need an excellent payment collection system. 

With more people shifting to online payment methods, you cannot afford to leave money on the table. So, reach out to a certified Nacha Preferred Partner like to set up your multi-channel payment processing platform to increase your fund receiving. Empower your donors and enjoy more funding. Speak with one of our experts today or download our catalog to simplify your donation collection journey.

Schedule a Call to Discuss Your Payment Technology Requirements’s innovative solutions help you accelerate payments simply, securely, and reliably.

We help businesses accept and process payments with our suite of next-gen customizable fintech solutions. Our automated technologies help you carry out ACH and credit card transactions on a single easy-to-use platform.