Payment Trends That Grow Nonprofit Donation Volumes
In recent years, payment technology advancements have fueled notable shifts in customer spending behavior. Credit cards and digital wallets have overtaken cash and check spending, while the proliferation of mobile devices has ramped up purchases made from tablets and mobile phones.
These changes have dramatically affected the nonprofit space as well — and savvy nonprofits know that catering to these trends has a significant impact on donation volume. By supporting the latest payment methods and platforms, nonprofits can make it easier for donors to give charitable contributions.
If you’re a SaaS provider who currently provides (or who wants to provide) payment processing technology within your platform, it’s important to know which features your nonprofit clients will benefit from most. Here are several top payment trends in the non-profit sector that are helpful to keep in mind when considering your embedded payments strategy:
Online donation forms
Although in-person donations continue to make up a large portion of total donation volumes, online donations are rapidly growing in popularity. According to BlackBaud, online giving grew by an incredible 42% between 2019 and 2021.
Donating online is fast and easy, especially when compared to traditional methods like writing and mailing a check. Plus, as social media is more heavily relied upon for sharing charitable campaigns, it has resulted in a higher number of donations being made online.
When embedding payments within your platform, you’ll want to be sure to include online payment processing capabilities — such as support for online payment forms. Plus, as mobile giving increases in popularity, consider adding mobile-friendly elements to your online forms and web pages, such as reactive or adaptive layouts and support for digital wallets.
As more and more people access campaigns and charitable causes from their mobile devices, adding online support for digital wallets is a must. Rather than having to dig through their wallet and tediously type in payment details, users of mobile wallets (like Google Pay and Apple Pay) can pay with just a few clicks using their stored card information.
Adding mobile wallet buttons to websites or donation forms is a great way for nonprofits to encourage donations. And, data backs this up — Central Michigan University revealed that after adding support for digital wallets, their 2022 annual giving day campaign experienced a 67% increase in mobile giving year over year.
Every organization wants to turn one-time givers into repeat donors. Fortunately, recurring payment processing technology has made it easier for organizations to do just that. With the ability to set up automated, recurring contributions, nonprofits can create a reliable and steady stream of income — reducing the uncertainty of single donations.
Recurring payments are often preferred by donors, too. Ongoing, smaller contributions are a great option for donors who want to generously support a cause but don’t have the funds to make one large donation.
Many payment gateways and payment technology solutions are equipped with recurring payment scheduling features that you can embed into your software platform. These features give nonprofits the ability to create custom recurring donation plans and even let donors opt-in for recurring donations.
Kiosks and Tablets
Gone are the days of wicker baskets for collecting spare dollars and crumpled checks. Today’s donors want to be able to pay with their credit or debit cards, and they want to do so fast. The solution? In-person kiosks and tablets that enable nonprofit staff and donors to quickly enter payment details.
When developing your embedded payment flows, it’s a smart move to ensure that they are compatible and mobile-responsive for tablet devices. If you haven’t already, you may want to consider offering online donation forms designed for tablet devices.
Donor-advised funds are tax-advantaged accounts used by philanthropists to allocate funds for charitable purposes. Many of these funds are linked to payment cards that donors can use to make donations.
Adding support for donor-advised funds within your product offering is sure to help your nonprofit clients increase their donation volume. Donor-advised funds are quickly becoming more popular among donors, with the number of new accounts increasing by 28.5% between 2017 and 2021.
Supporting a wide range of payment methods is a proven way for nonprofits to generate more donations. When considering which payment methods you’d like your platform to support, make sure to keep donor-advised fund payment cards at the top of your list.
If you’re looking to introduce more value to your client base while unlocking revenue growth, embedding payments is the answer. Catering to the unique needs of your nonprofit clients is a must if you want to ensure maximum customer satisfaction — so be sure to look for a payment technology provider that offers the payment features that nonprofits prefer.