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The Breakdown of Stripe’s Fees for Nonprofits


Whether you are looking for your very first nonprofit payment processor or you are trying to find a new solution, it helps to get a good idea of all of your options before you make a final decision. As Stripe is one of the most popular tools on the market, this article will break down Stripe’s service and how you can best utilize it for your nonprofit. 

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What Exactly is Stripe?

Stripe is a payment gateway used by businesses and nonprofits of many sizes. It allows your nonprofit to transfer funds from the bank account of donors to your organization’s bank account. It offers a predictable payout schedule, provides the option to accept payments from online users or those who donate in-person, and it is used by more than six million businesses around the world. 

stripe-nonprofits-fees-what-isSalma is ready to learn all about Stripe's processing fees!

Stripe accepts all major credit cards for online transactions. Also, as it can handle 135 different currencies, it is an ideal option for organization’s with a worldwide reach. If you are comparing Stripe vs PayPal, you will find that PayPal offers a few extra tools for nonprofits (along with slightly easier navigation). However, if your organization is on the larger side, Stripe will be a better option. 


Does Stripe Offer Specific Fees for 501(c)(3) Nonprofits?

Yes! Possibly our favorite feature, Stripe offers discounted transaction fees. Note, however, that discounted rates are only applicable to donations. The rates for transactions related to services, products or tickets will not be discounted. As long as 80% or more of your income comes from tax-deductible donations, you meet the eligibility requirements and you can apply for the discounted rate. 

Now, let’s dig into Stripe’s pricing and fees. If you consider the rates of Stripe vs Paypal, you will find that their discount rates are almost identical. They are both 2.2% + $0.30 for accepting donations. Any transactions that are not donations are charged at 2.9% + $0.30 per successful charge. Stripe can be more useful for any business to business transactions and international sales, whereas PayPal nonprofit is great for small or casual retail businesses. Square for nonprofits, on the other hand, does not offer discounts for donations, stating that their rates are already relatively low. 


How to Apply for Stripe’s Nonprofit Fee Reductions?

In order to qualify, you must send an email to with the following information and documents:

  • Your EIN

  • A letter from the IRS which indicates your 501(c)(3) status

  • Confirmation for the email address you have linked to your Stripe account (you do not want to miss any important notifications!)

  • Proof that 80% or more of the income you receive will be tax deductible donations 

Pro Tip: Your membership dues, your ticket sales, or any other income outside of donations will not be eligible for discounted rates with your stripe account. However, you will have access to a free merchant account, low-cost ACH processing, and a highly customizable platform. 


Final Thoughts

There are so many nonprofit point of sale options for redirecting funds. If you are still looking for the right gateway for your organization, maybe Stripe is the way! It boasts rates of 2.2% + $.30 per in-person or online transaction for all eligible organizations. When you need to accept donations across a variety of platforms, including in-person, you need an inclusive option. 

If you are looking for alternatives to paypal for nonprofits, you have many other platforms to choose from. You may consider DonorBox, Adyen payment, iATS payments, or even Google Pay for charities. As you continue to research, keep in mind that not all payment processors offer discounts for nonprofits. Stripe for nonprofits is a step ahead in that area. Not only is it ideal for larger organizations, it provides discounted rates on (some) transactions! 

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💡What are Stripe fees for 501(c)(3) nonprofits?

Stripe charges 2.2% + $.30 for nonprofits. Find out more. 

🔑 How to apply for Stripe’s nonprofits fees reduction?

Send a letter with your EIN, or a letter from the IRS that verifies your 501(c)(3) status. Include the email associated with your Stripe account, and confirmation that more than 80% of your payment volume will be tax deductible donations. Find out more. 

📝 What is Stripe and how can nonprofits use it?

Stripe is a popular payment gateway that allows businesses to accept a variety of credit card payments. They offer reduced rates for nonprofits, and to apply, all you have to do is send an email with some important information. Find out more.  

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