Every non-profit organization has a purpose-driven mission it needs to meet. To sustain these vital missions, these entities receive donations from well-wishers. However, in the increasingly evolving digital world, charitable organizations face the challenge of adapting to modern technology to remain competitive and manage their activities.
But the good news is that online payment methods can transform how these organizations get donations. Adopting digital payments offers convenience to donors and opens doors to a broader audience, enabling non-profits to engage with supporters globally. This donor experience is important because 80% of customers believe that the experience an organization provides is as critical as the services and products.
So, how can non-profits start offering online payment options?
Establishing a payment processing partnership with a reliable gateway like iCG Pay, formerly iCheckGateway.com, is a good place to start.
Read on to learn the benefits non-profits get by transitioning to online donation platforms.
What Are the Common Types of Online Payment Methods for Donations?
Online giving has become more popular, especially due to the increase in younger donors who prefer such payment methods. These online donations are essential because they have increased monthly giving revenue by 40%. Here are the common options that your non-profit organization should embrace:
ACH Payments
ACH payments allow donors to transfer funds electronically from their bank accounts to the non-profit's account. What sets ACH payment processing apart is the low transaction fees compared to credit card payments.
Donors provide their bank routing and account numbers to authorize payments, which are processed through the ACH network. Additionally, ACH payments are suitable for recurring donations, providing a seamless way for donors to set up automatic transfers on a regular basis.
Mobile Payments
According to The Global Payments Report 2023, mobile wallets are expected to take a 41% share in transaction value in 2026. This projection is due to the rise in mobile payment solutions. Donors are looking for payment options that allow them to contribute using their smartphones or mobile devices.
Popular mobile payment platforms and mobile banking apps facilitate quick and convenient donations. Donors can make payments by scanning QR codes, tapping NFC-enabled devices, or simply entering payment details within the mobile apps. Mobile payments are popular because they appeal to donors who prefer the convenience of donating on the go, especially younger donors accustomed to mobile technology.
Credit Card Payments
Accepting credit card payments remains one of the most common online payment methods for donations. Donors can securely enter their credit card information on non-profit websites or donation platforms, allowing them to contribute quickly and efficiently.
However, credit and debit card payments can have higher transaction fees compared to other methods like ACH processing.
Email Invoicing
In the past, donors would send paper invoices, slowing down the donation process. Email invoicing boosts online donations by allowing non-profits to send a payment link to a hosted payments page. Alternatively, charities can send donation requests directly to donors' email addresses, providing a convenient way to contribute.
Invoices typically contain a payment link that directs donors to a secure online payment portal where they can click on a donation button and complete transactions. Email invoicing is particularly useful for soliciting donations from corporate sponsors, individual supporters, or event attendees.
SMS Payments
To encourage donors to contribute regularly, provide an SMS payment option. A text-to-donate facility engages your donors and encourages them to donate more often since texts have a 98% open rate. SMS payments offer a simple and convenient way for donors to contribute, especially in response to fundraising appeals or during events. Additionally, the payment information is well-secured if you work with a reliable payment gateway provider like iCG Pay.
What Benefits Do Non-Profits Get from Using Online Payment Methods?
There are about 1.5 million non-profit entities in the U.S. For your charity to stand out and meet its fundraising campaigns, you need to set up online donation stations. Here’s why:
Increased Donor Accessibility and Reach
Donors are looking for convenience. Online payment methods meet this need by making it possible to contribute from anywhere. For instance, if you offer mobile payments or hosted portals, donors can support non-profits anytime, even outside traditional business hours, leading to a higher likelihood of spontaneous donations.
Accessibility to various payment options caters to diverse donor preferences, enhancing overall convenience and satisfaction.
Streamlined Fundraising Operations
Online ACH and credit card payments increase donations and streamline the entire process. Since all the payments are processed digitally, the non-profit reduces the administrative burden and operational costs. Furthermore, with automated features, such as recurring donation options and tracking, the donation process is efficient, saving time and resources.
Partnering with a payment gateway provider like iCG Pay provides integration capabilities with existing fundraising software. Therefore, if there are bank transfers or other forms of payment, the non-profit can manage the funds and monitor data from one system.
Improved Fundraising Performance
Have your contributions reduced over time? You might be using outdated methods to collect payments. Online payment methods offer non-profits access to valuable data insights, including donor demographics, giving trends, and campaign performance metrics. If you sign up for iCG Pay services for non-profits, you can track the success of your campaigns.
Our systems consolidate all donation data, allowing you to analyze contributions and access real-time insights to help you reach financial goals and engage donors. With this information, you can optimize fundraising strategies, target fundraising efforts more effectively, and identify areas for improvement.
Secure Transactions
For donors to trust you, you must have secure payment systems. Due to the rise in payment fraud, only work with secure payment gateway providers like iCG Pay that will keep the financial information safe. Secure online methods will also help you reduce your PCI scope as you process payments and handle any sensitive data.
Choose iCG Pay for Your Online Donations
The younger generation is giving more. Therefore, as a non-profit, you have to keep innovating and adopting digital methods that connect with these audiences. You can start by partnering with a payment processor like iCG Pay. We offer a flexible, secure online platform for one-time and recurring contributions for diverse payment options.
Our secure gateway ensures PCI compliance, safeguarding sensitive transaction data.
Partner with us or download our catalog to learn more about our payment services.
