Square for Nonprofits: How to Accept Donations, Manage Payments and Simplify Fundraising for Your Nonprofit

When it comes to affordable and easy-to-use payment tools for small shops, cafes, food trucks and boutiques, Square has been the undisputed go-to for well over a decade. That little white card reader, the free app, the flat pricing with no monthly fees- millions of for-profit sellers swear by it because it just works, every time, without drama.

But what happens when the person standing in front of you isn’t buying a latte or a hand-poured candle- they’re a donor who wants to support your food bank, youth program, church mission trip or animal rescue? When your entire reason for existing isn’t profit, but measurable community impact? Can the same sleek hardware and simple software that powers corner bakeries and pop-up markets also be a smart fundraising choice for real 501(c)(3) nonprofits- especially when you’re competing in a world where specialist event platforms like Paybee promise auction magic, mobile bidding and paddle-raise excitement?

That’s exactly what we’re digging into here, this isn’t just another generic "best donation tools" roundup written by someone who’s never actually run a gala or a 5K registration table at 6 AM. This is a focused, practical guide built specifically for nonprofit leaders (executive directors, development staff, volunteer treasurers and board members) who need clear and honest answers about whether Square deserves a permanent spot in your fundraising toolkit (and exactly when to pair it with something more specialized).

What Square Actually Is (in 2025)

Officially part of Block, Inc., Square started as a tiny card reader that plugged into a phone and has evolved into one of the world's most widely used commerce platforms. It still offers a completely free POS app with zero monthly fees for basic features and hardware that starts at $0-$49 depending on the model, making it genuinely accessible to organizations of every size (pro tip: For event-heavy groups, platforms like Paybee layer on auction and ticketing magic without the extra hardware hunt).

As of late 2025, the Square Point of Sale app has surpassed 58 million downloads worldwide and powers more than 4.8 million active seller accounts (including a fast-growing number of registered 501(c)(3) nonprofits). Those numbers continue to grow as the core promise remains the same: set up in minutes, pay only when you get paid and keep more of every donation in your mission’s pocket.

We’ll dive into Square fees and how Square’s donation tools stack up against “nonprofit-only” processors, also whether its WordPress integration still makes it one of the simplest ways to add “Donate Now” buttons that actually convert.

What Square Offers Nonprofits

Square gives nonprofits an easy way to take payments anywhere- whether that’s a donor dropping a card at a fundraiser, buying a T-shirt or clicking “give” on your website. No coding, no fancy gear, just a reader or a link and you’re live.

Here’s what it actually does for charitable groups:

Pop-up donations: Hand a phone or tablet to someone at an event; they tap or swipe and the gift lands in your account.                    Tickets and merchandise: Sell gala seats, raffle entries or branded swag through the same dashboard.  
Online giving: Add a “Donate” button to any site or send an invoice that works on a phone.  

It handles Visa, Mastercard, Amex, Apple Pay, Google Pay- whatever the donor pulls out. Receipts fire off automatically, which saves the follow-up email later.

The pricing is dead simple: one posted rate per swipe, tap or online gift. There are no tiers, there are no surprises. For a small shop or a weekend drive, that clarity beats spreadsheets full of hidden charges we'd all like to avoid.

Square isn’t built only for charities and fundraising, so you won’t find donor thank-you templates or pledge tracking inside the app. But for groups that need speed and low fuss, it’s a solid plug-and-play option- especially when paired with something like Cash App for quick peer-to-peer gifts(if you're scaling to galas or virtual events, though, event platforms like Paybee handle the full flow, from bids to bids to thank-yous).

Are you ready to try it? You can grab a free reader from Square’s site, link your bank account and you can start accepting your first donations in under ten minutes.

How to Set Up Square as a Nonprofit in Under 8 Minutes (2025 Edition)

1. Go to squareup.com → click “Get Started”
2. Choose “Nonprofit organization” when it asks your business type (this unlocks the correct tax settings)
3. Enter your 501(c)(3) EIN- you do NOT need to upload paperwork upfront
4. Link your nonprofit bank account (must be in the org’s legal name)
5. Order your free magstripe reader or Tap-to-Pay on iPhone/Android
6. Turn on “Donations” mode in Settings → Checkout → Item Library → Create new item called “Donation” (this removes sales tax automatically)
7. (Optional but smart) Turn on “Custom Amounts” and add suggested giving levels
8. Done! You’re live.

Pro moves most people miss:

• Enable “Offline Mode” right away (Settings → Checkout)
• Turn on “Automatic tax-exempt receipts”
• Create separate “items” for each campaign (e.g., Gala Ticket, Hurricane Relief, Monthly Giving) so reporting is clean.

Total time: 6 to 8 minutes and zero fees to start.

9 Benefits of Using Square for Nonprofits 

You’re probably wondering, “Okay, it’s simple and other groups use it, but why should my nonprofit pick Square?” Fair question. Here’s the straight talk pulled from real teams who’ve been in the trenches with bake sales, 5Ks, galas, last-minute disaster drives- you name it!

No Hidden Fees, Just One Flat Rate (and Maybe a Discount If You’re Big Enough)

Square doesn’t do the “nonprofit discount” dance like some processors do, but their standard rates are already tight:

• 2.6% + 10c when someone taps, swipes, or chips in person
• 2.9% + 30c for online or invoice gifts
• 3.5% + 15c if you type the card in manually

There's no monthly fee, no gateway charge and no “statement fee” nonsense. If your organization clears $250 000+ a year in card volume? Shoot Square a quick email. Plenty of larger charities quietly land custom rates that shave a few basis points off (for event pros, Paybee keeps it simple too- no monthlys, just transparent per-transaction fees that let you focus on the cause). That’s real money back into programs and not into the pockets of processors with hidden transaction fees.

You Can Turn Any Phone Into a Donation Booth- No WiFi? No Problem.

Your volunteer shows up at the county fair with a dead signal. No sweat. Square’s app lets you take payments offline, stores them securely and uploads everything the second you’re back online. Free reader in the mail. Plug it in. Done. From door-to-door canvassing to remote pop-up clinics, you’re never “off the grid” when it comes to taking gifts.

Volunteers Can Jump In Without a Training Manual

Hand a tablet to a high school kid at the merchandise table and they’ll figure it out in 30 seconds. The dashboard shows:

• Who’s ringing up what
• Which event is crushing it
• Real-time totals across five booths at once

No more “wait, did Sarah log that $100 cash gift?” Everything’s tracked, timestamped and exportable. Perfect for nonprofits running on rotating crews and zero full-time tech staff.

Donors Get a Receipt Before They Walk Away

Tap → beep → email or text receipt lands in their inbox. You can customize it:

• Add your logo
• Slip in a one-line impact stat, something like “$25 feeds a family for a week”.
• Include tax info so they’re audit-ready

That instant “yep, it went through” moment? It’s truly a golden moment, it turns a transaction into a feel-good memory and makes them way more likely to give again.

There's Built-In Feedback Loop (Without the Awkward Survey)

After every gift, Square quietly asks: “How was your experience?” It’s one tap: 😊😐😔 You get a dashboard of smiles and frowns. Last month, one animal shelter saw 40% 😔 at their adoption fair. Turned out: long lines. They added a second iPad and saw smiles shoot to 92%. It was a tiny tweak but it had a massive retention boost.

Lightweight Donor Tracking (No CRM Required)

Square isn’t DonorPerfect, but it’s not dumb either. It auto-tags:

• First-time givers
• Monthly regulars
• Event-only donors

From there, you can:

• Fire off a quick “thanks for joining our monthly family!” email
• See who hasn’t given since last year’s gala
• Export a CSV and drop it into Mailchimp or Google Sheets

For small teams, it’s just enough relationship juice without the $200/month CRM hangover.

Real-Time Analytics That Actually Help You Decide

Open the app at 8 PM during your auction:

• Silent auction items: $4200
• Raffle tickets: $680
• Walk-up donations: $1100

You see the raffle’s tanking. You grab the mic: “Last 10 minutes- raffle tickets 2-for-1!” Boom. $400 more in 12 minutes. Compare events year-over-year to spot your best channels, then you ditch what’s not working. It's all about the data, not the vibes.

It’s More Than Just a Card Reader- It’s a Mini Operations Hub

Square bundles extras that save you from juggling five logins:

• Sell tickets online (no Eventbrite needed)
• Run a simple shop for shirts, mugs, or digital downloads
• Pay staff or stipends with built-in payroll
• Book volunteer shifts with Appointments
• Sync to QuickBooks so your bookkeeper doesn’t hate you

Square offers one dashboard, one password and less chaos.

It Offers Bank-Level Security Without the Bank Headache

• EMV chip readers (no skimming)
• PCI compliance handled for you
• Fraud monitoring 24/7
• Tokenization (card numbers never hit your phone)
• Helps with AML/KYC if you’re taking big checks

One breach can torch donor trust, Square’s got your back so you’re not in the headlines for the wrong reasons.

Square vs. Other Nonprofit Payment Processors 

Square’s your event workhorse, but the field’s crowded. Paybee, PayPal, Stripe, Harness, Zeffy, Givebutter and Classy all play different roles- some are super cheap, some are built for galas and some for keeping donors forever. Most nonprofit organizations don’t pick just one. They run two or three: Square at the booth, Paybee for the auction and Zeffy online.

Here’s a full side-by-side comparison for all 8 nonprofit payment processors: 

Is Square + WordPress Still the Easiest Way to Get a “Donate Now” Button That Actually Works in 2025?

The short answer is yes. Like, ridiculously yes.

If you’re running your nonprofit site on WordPress (and let’s be honest, half the planet is), adding a clean, trustworthy “Donate Now” button with Square is still one of the fastest, least painful things you’ll do all year.

Here’s what actually happens in 2025:

You install a free or cheap plugin- GiveWP, Gravity Forms + Square Add-On, Charitable, or WP Charitable’s own Square gateway and in about five minutes you’re live. No developer required. You just click “Connect to Square,” log in with OAuth (same as connecting your Gmail), pick whether you want one-time gifts, monthly pledges or suggested amounts, and boom- your button is on the page.

The donor never leaves your site, never gets bounced to some clunky third-party page, and they’re filling out a form that looks like it was custom-built for you (because it basically was). The card fields are embedded right in the page so abandonment rates drop hard.

And the pricing? Still just Square’s normal 2.9% + 30c. No monthly fee for the plugin (unless you want premium features), no “nonprofit rate” hoops to jump through and for a lot of smaller-to-mid-sized charities, that ends up cheaper than the so-called “nonprofit-only” platforms once you add up their platform fees.

Donors love it too- they already know and trust Square from buying coffee or paying at the farmers market. Familiarity = higher conversion. I’ve seen side-by-side tests where the Square version consistently outperforms Stripe or PayPal by 10-20% just because people don’t hesitate.

The bottom line is, if you actually want something that looks professional, works on mobile, sets up in an afternoon and doesn’t nickel-and-dime you, Square + WordPress is still the cheat code in 2025. 

Common Mistakes to Avoid When Using Square for Nonprofits (and How to Fix Them)

Even the simplest tools can trip you up if you skip a few key steps. Here are some of the most common pitfalls nonprofits run into with Square- plus practical ways to avoid them and keep your fundraising smooth, secure and donor-friendly.

Treating Every Donation as a One-Size-Fits-All Transaction

Many teams create a single generic “Donate” button and call it a day. Donors land on a plain page with no context, no suggested amounts, and no story. Result? Higher abandonment rates.

Fix it: Create campaign-specific donation pages or items in Square (“Hurricane Relief,” “Sponsor a Student,” “Gala Table”). Add a short description and preset giving levels tied to impact ($27 = one month of meals). Donors give more when they see exactly where their money goes.

Forgetting to Turn On (or Customize) Email Receipts

Square sends receipts automatically, but the default is boring and misses a huge stewardship opportunity. Donors get a cold “Thanks for your payment” instead of a warm thank-you that reinforces your mission.

Fix it: Go to Settings → Checkout → Customer notifications and upload your logo, add a personal message, and include a one-line impact statement. Example: “Because of you, 50 more kids will get school supplies this fall!” This tiny tweak can increase repeat gifts by 15-20%.

Ignoring the Post-Donation Experience Completely

You collect the gift… and ghost the donor. No follow-up email, no social shout-out, no update on how their money was used. Donors feel like ATMs instead of partners.

Fix it: Set up a simple automation (Zapier → Mailchimp or even Gmail) that triggers a personalized thank-you within 24 hours. Six months later, send a quick impact report. Retention skyrockets when people see results.

Not Training Volunteers (or Training Them Once and Hoping)

Volunteers show up excited, get handed an iPad, and accidentally charge someone $1000 instead of $100 because they didn’t know how to edit amounts.

Fix it: Create a 60-second laminated cheat sheet or a 2-minute Loom video:

• How to search/add a custom donation amount
• How to add customer name/email for the receipt
• What to do if a card is declined Run a 5-minute huddle before every shift. It prevents embarrassment and lost donations.

Skipping Two-Factor Authentication and Sharing Logins

One volunteer uses “Password123” and shares the login with the whole team. If the account gets compromised, every past and future donor’s card data is at risk (even though Square tokenizes, the optics are terrible).

Fix it: Enable two-factor authentication immediately. Create separate staff accounts with limited permissions (view-only for interns, full access only for finance leads). It takes just a mere 10 minutes and it saves a lifetime of crisis PR.

Not Reconciling Square Deposits with Your Accounting System

Square deposits hit your bank in batches, but your bookkeeper records donations only when they see the money. Two months later you discover $4800 in donations never made it into your books.

Fix it: Export a CSV from Square every Monday (or set up auto-sync with QuickBooks or Xero), reconcile weekly instead of quarterly so that you can catch discrepancies early on and keep your auditor happy.

Using the Same Square Account for Personal Expenses

Mixing gala ticket sales with buying your teenager’s prom tickets is an IRS red flag waiting to happen.

Fix it: Keep nonprofit and personal completely separate. Open a dedicated bank account for the nonprofit and link only that account to Square. Clean books = peaceful audits.

Forgetting to Test the Donor Flow Before the Big Event

You launch your gala, print gorgeous table tents with QR codes… and half the donors get a broken link or a clunky mobile experience.

Fix it: Always test on multiple phones (iPhone, Android, old models) and networks (Wi-Fi + cellular). Have a non-staff friend try it blind. Fix glitches before 500 people are standing in line.

By dodging these eight common mistakes, you’ll collect more money, keep donors happier, protect your reputation and sleep better at night. These are small habits with a massive difference.

When Square Isn’t Your Event MVP (And Exactly Why Paybee Takes Over)

Let’s be real: Square is brilliant for a lot of things. Hand someone an iPad at a 5K and collect $50 registration fees? Perfect. Stick a QR code on a table at a bake sale and watch the $5 and $10 donations roll in? Effortless. Need to take a quick $1000 gift from a board member on the spot? Square has your back in seconds.

But the moment your fundraiser stops looking like a lemonade stand and starts looking like a real event (we're talking a gala with 200+ guests, a live auction with 40 high-value items, a hybrid event that’s streaming to virtual bidders, a peer-to-peer campaign with 300 fundraisers) Square starts to show its limits. 

Here’s what actually happens when you try to run a serious fundraising event on Square alone:

• No live bidding screen. You’re yelling out bids or waving paper paddles while someone frantically types numbers into an iPad.
• No real-time leaderboard. Your emcee has no idea who’s winning the trip to Hawaii or the signed guitar- so the energy in the room flatlines.
• No mobile bidding. Your younger donors are stuck watching older guests raise paddles while they sit there wishing they could just use their phones.
• Checkout takes long. 250 people line up at two tables to pay for auction wins, fixed donations and raffle tickets. You lose half of them to boredom (and lost revenue).
• No automatic donor data capture. You’re scribbling emails on paper bid sheets and praying volunteers type them correctly later.
• No fund-a-need / paddle raise tool. You miss the easiest $20K-$100K of the night because you have no slick way to display giving levels on the big screen.
• No virtual or hybrid integration. Remote donors can’t participate in the live auction or see what’s happening, so they just… don’t give.

That’s not a knock on Square- it was never built for this. Square was built for coffee shops and food trucks. It’s a transaction tool, not an event revenue engine.

This Is Exactly Why Paybee Exists

Paybee was created by people who spent years running (and attending) nonprofit galas, auctions, golf tournaments and walkathons. We got tired of the same chaos every single year, so we built the all-in-one platform that eliminates it.

Here’s what actually happens when you switch the event side of your fundraising to Paybee:

• One unified dashboard for everything. Live auction + silent auction + raffle + fund-a-need + ticket sales + sponsorships- all in one place. No more toggling between Square, Excel, Greater Giving and a random bidding app.
• Mobile bidding that guests actually love. Every attendee gets their own bidding app on their phone the second they check in. They can bid from their table, from the bar or from their couch at home if it’s hybrid. Average bid increases of 35-40% are normal.
• Real-time leaderboards and on-screen displays. Your emcee and AV team get beautiful slides that update instantly. The room erupts when someone gets outbid by $50- that competitive energy is pure fundraising gold.
• Express checkout that clears a 400-person gala in under 12 minutes. Guests walk out the door; their phone buzzes: “Review and pay for your wins.” One tap and they’re done. No lines, no lost credit cards, no awkward “we’ll mail you an invoice” moments.
• Automatic donor data collection and segmentation. Every bid, every purchase, every paddle raise- every single gift is tied to the correct donor record. Export it straight to your CRM or Mailchimp the next morning.
• Built-in fund-a-need or special appeal. Drag-and-drop giving levels ($5000, $2500, $1000…) appear on the big screen and every phone. We’ve seen organizations raise $80K in six minutes with zero paper paddles.
• Free texting and email tools. Outbid alerts, winner notifications, thank-you messages, impact updates- all automated and sent with one click.
• Live coaching included. When you sign up, you don’t just get software- you get an actual human (usually an ex-development director) who jumps on Zoom and builds your first event with you. Most orgs are fully live in under a week.

The bottom line is keep using Square for the merch table, the walk-up donations and the quick swipes. It’s free hardware and rock-solid for that.

But when it’s time to run the actual fundraising event- the one night (or weekend) that accounts for 50-80% of your annual revenue- that’s when you graduate to the tool that was custom-built for it.

That tool is Paybee.

Ready to see it in action? Book a demo and we’ll show you a live gala (or build your next one with you for free). No pressure, no salesy nonsense- just proof that your best fundraising night ever is closer than you think.

How to Combine Square + Paybee for a Gala That Actually Makes Money (2025 Hybrid Blueprint)

The most successful nonprofits in 2025 aren’t picking sides, they’re running Square and Paybee side-by-side and turning ordinary galas into absolute revenue machines. This hybrid model has quietly become the gold standard because it lets each tool do only what it’s world-class at- no clunky workarounds, no stressed-out volunteers and no lost donations.

Here’s the exact playbook the highest-performing teams are using right now:

How the Money and Data Flow (Still Super Clean)

• Square deposits hit your bank next day (or same-day with Instant Deposit for 1.5%)
• Paybee deposits land in the exact same bank account 1-2 business days later
• You wake up to two perfectly labeled reports: “Square- bar, merch, door” and “Paybee - tickets, sponsors, auctions, pledges”

The Volunteer Experience (The Real Game-Changer)

• Square stations: give a 16-year-old an iPad and say “ring it up like Target”- done.
• Paybee captain (usually just one staff member): sits in the AV booth, presses “Start Live Auction,” “Launch Checkout” and relaxes
• Total volunteers required: 60-70% fewer than any traditional gala you’ve ever run

The bottom line is let Square handle the simple, familiar and bulletproof transactions it was born for. Let Paybee run the revenue-generating moments that actually move the needle and turn a good night into your best fundraising night ever.

Using Square as a Nonprofit: Key Questions Answered

Is Square available for nonprofit organizations?

Absolutely. Any registered nonprofit can sign up for Square and accept donations either in person or through digital channels.

Are there reduced processing fees for nonprofits?

Square applies its regular rates to all transactions, including those from charitable groups. Their fees vary depending on whether the payment is card-present, keyed-in or online.

Does Square connect directly with donor management systems?

It can- but not out of the box. You’ll need a third-party connector (such as Zapier) or a custom API setup to link Square with CRMs like Salesforce or similar platforms.

Can Square manage ongoing donor contributions?

Yes, recurring payments are supported via subscription plans. However, the tools are general-purpose, so features like donor messaging or variable giving schedules are basic compared to platforms built specifically for nonprofits.

Is Square suitable for selling event tickets or merchandise?

Yes. Nonprofits can use Square to sell physical goods, event admissions, memberships or any other items through its point-of-sale or e-commerce tools.

Which payment platform works best for nonprofits?

Many organizations prioritize keeping 100% of each donation. Zeffy is a popular choice because it covers all transaction costs and provides a full suite of fundraising features at no charge to the nonprofit.

Conclusion: Why Square for Nonprofits Is a Smart Fundraising Tool 

Square is that trusty tool a lot of nonprofits lean on- it's easy to pick up, works anywhere and gets the money in fast. You can take a swipe at a 5K, sell shirts at a festival or even drop a “give now” link in an email. Square handles it- no fancy setup needed, no IT guy on speed dial.

But naturally, those fees add up: 2.6% + 10c when someone taps in person, 2.9% + 30c online. It’s predictable, sure, but every cent counts when you’re feeding kids or saving dogs.

That’s where other options come in- like Paybee for auctions and galas, or Zeffy if you want to keep 100% of every gift (donors tip to cover costs, most do anyway). Some groups even run Square at the event table and Paybee for the live bid-off, or Zeffy for the website so nothing gets eaten by fees.

The point is: Square’s great, but it’s not the whole toolbox. That's where Paybee steps in, handling auctions, ticketing and donor love so you can mix 'n' match for max impact.

Whether you’re printing QR codes for the merchandise booth, texting a link during a crisis or building a full campaign- you need to pick what fits your hustle. The best way to do this is by testing a couple of nonprofit fundraising platforms and making sure to track what actually converts for your nonprofit. Most importantly, talk to your donors, this can hardly be stressed enough- they’ll be the ones to tell you if the button’s clunky or the receipt feels cold.

At the end of the day, it’s not about the processor. It’s about making giving feel easy, personal and worth it. Once you accomplish that you'll notice how the contributions will follow.