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Venmo for Nonprofits: A Complete Guide

UPD: 02 December 2024 at 20:50

Thanks to modern digital tools, receiving donations for charity causes has never been easier. Anyone who has ever tried doing charity knows how important ease of access is, and right now, a donor can send their money with just a few taps on their screen. One of the most convenient platforms for a charity organization to receive funds is Venmo.

Not only does it offer unparalleled convenience for nonprofit organizations, but also provides lower transaction fees and has in-built social engagement tools. If you are planning to use Venmo for your donation campaign, keep reading to find out all the details.

Why Choose Venmo for Nonprofits?

Venmo is a mobile payment service launched in 2009. Though owned by PayPal, it’s a fully autonomous platform for peer-to-peer transactions. Primarily suitable for individuals, it allows users to easily split bills, share expenses, and reimburse friends. The users can link their bank accounts, debit cards, or credit cards to their Venmo profiles.

While initially intended for personal transactions, using Venmo for nonprofit organizations dedicated to fundraising is surprisingly easy. There are quite a few reasons why nonprofits should consider leveraging this platform to accept donations.

Convenience

As a digital wallet, Venmo is easy to use on the go, which means it won’t take much time for your donors to complete a transaction. With the widespread use of Venmo nowadays, donors can make donations anytime, anywhere, using just their smartphones.

Speed and Efficiency

With Venmo, there is no need to manually write checks or navigate cumbersome forms pertinent to traditional fundraising methods. Transactions on this platform are near-instantaneous, so you’ll receive donations in no time at all (which is quite important for time-sensitive causes).

Lower Transaction Fees

Using Venmo for charities means discounted processing rates. For instance, Venmo nonprofit fees for processing are just 1.9% plus $0.10 per donation. For donors, charity transactions are absolutely free. Even if they use a credit card to donate, they will be exempt from the 3% rate normally charged for credit card payments.

It is the social aspect, however, that makes Venmo so appealing to fundraisers. Users can share payment transactions with friends and engage in conversations about their financial lives. By encouraging donors to comment and interact, charity organizations can foster a sense of community and solidarity among supporters and raise awareness for their cause.

Extended Reach

By sharing their contributions to their Venmo accounts, users can motivate others to follow their example. Likewise, nonprofits can create donation links and add them to their websites, newsletters, and social media profiles to hit a wider audience and draw in new supporters.

Setting up Venmo for Nonprofit

To use Venmo for fundraising, you need to have both a regular Venmo account and a registered PayPal business account. Here are all the steps to take to set up Venmo for your nonprofit organization.

Create a Venmo Account

You will need your Venmo account to do any of the following, so it’s best to have one ready to go if you haven’t yet signed up. To get one:

Download the Venmo app from either the Google Play Store for Android devices or the App Store for iOS devices.
Next, open the app and tap ‘Sign up’ to create your account.
You have to enter either your phone number or email and also come up with a reliable password (20+ symbols, letters, and numbers, all that).
Verify your identity by either following the email verification link or entering a code that will be sent via SMS.

Now that you have a personal Venmo account:

Go to Settings, tap on “Create Business Profile,” and choose “Nonprofit” as your business type. You’ll need to provide your organization's bank account details, website URL, and EIN.
After you log into your Venmo account for nonprofit, you can personalize your charity profile by adding a description, logo, keywords, and cover photo that reflects your nonprofit’s mission.
Once you are happy with the profile, tap ‘Publish.’

Set Up Donation Campaigns

Before setting up a donation campaign, you’ll need to decide on its goals, budget, and timeline (but you knew that already, didn’t you?). Once this is done, you can prepare corresponding marketing materials and campaign pages (blog articles, social media posts, etc.) that are in line with your goals and publish them on your Venmo profile.

Promote Your Venmo Profile

To start receiving donations, you should share your Venmo handle. You can do this via social media, email, or any other communication channel you use to reach potential donors. Another easy option is to use a QR code. You can create one on the home screen of your charity profile.

Use a QR code to start receiving donations

Keep in mind that Venmo will still charge a fee of 1.9% + $0.10 for each donation you receive.

Manage Donations

While there are no limits on the total amount of donations a charity profile can receive, it’s a good idea to track them in your profile.

Once the campaign is over, you can transfer the funds via any payment method Venmo supports. Keep in mind that there is a weekly rolling limit applied to bank transfers. The limit for a regular bank account transfer is $100,000, while the limit for an instant transfer is $50,000.

Tips on Promoting a Venmo Nonprofit Account to Boost Donations

Once you’ve set up Venmo for a nonprofit, it’s not the time to sit back and relax. While Venmo is an efficient tool per se, here is how you can embrace a broader target audience and maximize the donation inflow. Here are a few bits of advice if you're new to this whole fundraising thing.

Leverage Social Media: In addition to including your Venmo link in regular marketing materials, you can share it on your website and social media channels. To encourage your followers to donate, regularly post updates on your fundraising campaign, success stories, and calls to action.
Create Compelling Content: Develop engaging and visually appealing content that highlights the importance of supporting your cause. Use storytelling techniques to connect emotionally with your audience and inspire them to act.
Engage With Supporters: Promptly respond to comments, messages, and inquiries to maintain meaningful interactions with your audience. Encourage dialogue around your cause to build trust.
Collaborate With Influencers: Partner with bloggers or social media personalities who align with your nonprofit’s values and mission. Cooperate on campaigns or events that promote your Venmo profile to their followers to drive contributions via their reach and influence.
Incentivize: Although this isn’t suitable for every fundraising campaign, you can create incentives or challenges to encourage donations through your Venmo nonprofit account. Offer exclusive perks or rewards to donors who contribute a certain amount.
Provide Feedback: Share testimonials from the beneficiaries whom your organization’s work has positively impacted, as well as its volunteers and supporters. Real-life stories and tangible results can resonate with potential donors and motivate them to continue their support.