How To Use Venmo To Increase Nonprofit Donations

Venmo is becoming a key player in the world of nonprofit donations. With over 90 million users in the U.S., it's not just about splitting dinner costs or sending cash to pals anymore. 

This app can help nonprofits connect with younger people, especially those aged 25 to 34. Venmo's average transaction amount lies between $65 and $75, showing its potential for collecting significant donations. 

Today, we will discuss how you can use Venmo to increase your nonprofit's donation. Stay tuned to find out how to make Venmo a vital part of your fundraising strategy.

What Is Venmo?

Venmo (owned by PayPal) is a mobile payment service that lets people send and receive money easily. 

It's like a digital wallet. You can use Venmo to split bills, pay back friends, or even pay for things at some stores. It's popular because it's quick and simple to use. 

10 Benefits of Using Venmo for Nonprofits

Using Venmo for your nonprofit comes with several more benefits that can help increase donations and engage donors effectively:

1. Popular with Young People

Venmo is a hit among the young generation. Many Venmo users are younger than 30, which means you get to connect with a group that likes things easy and social when they're giving.

2. Works Well with Social Media

Venmo makes it easy to share on social platforms. By linking your Venmo to your nonprofit's social media, you can get more people to see and donate in a way they know well. 

Putting your Venmo QR code out there on social media makes donating simple for your supporters.

3. You Can Make Your Profile Your Own

When you set up your Venmo profile with all the info about your charity, like what you're all about, how to get in touch, and where to find you on social media, it helps donors get to know and trust you. It also leads to more support.

4. It's Safe

Venmo is as safe as a bank, which means both you and your donors can feel secure about the money. Security is especially important for donors from Generation X who really care about online safety.

5. Helps Build Community

Venmo's social side does more than move money—it helps you connect. When people donate, their friends can see, giving your nonprofit instant social proof and helping you reach more people.

6. Quick Access to Funds

Venmo lets nonprofits get to the donated money the same day it's given, which can really help your group stay flexible and respond fast when needs come up.

7. Keep Different Funds Separate

Venmo lets you keep separate accounts for personal and charity money. This feature makes handling your finances easier.

8. Better Engagement with Donors

Venmo's social features, like comments and likes, let you interact directly with donors. You can thank them, discuss your cause, and keep the conversation going.

9. Great for Small Donations

Venmo is awesome for small donations. Its users are used to making quick, small payments, so you can attract new donors who might not want to give big amounts through more traditional ways.

10. Low Fees

Venmo's fees for charity donations are low, at 1.9% + $0.10 for each donation. This means more of the money goes straight to your cause. 

How To Setup Your Nonprofit Venmo Account

Setting up a Venmo account for your nonprofit is a simple process. Here is how to do it:

Verify Your Nonprofit Status with PayPal

Before anything else, make sure your organization has a PayPal Business account. Since Venmo is part of PayPal, you'll need to confirm your nonprofit status there.

Create a Venmo Charity Profile

After you've got your nonprofit status set on PayPal, you can go ahead and set up a new Venmo account just for your nonprofit. You'll need an email and phone number that haven't been used with Venmo before.

Build And Customize Your Profile

Put in all the important info about your organization, like its name, what you do, and how to contact you. Including keywords and links to your social media or website can make it easier for people to find you. 

Adding photos to show the good work you're doing is also a great idea.

Review and Share Your Profile

Take a look at your profile to make sure everything looks good and really shows what your nonprofit is all about. When you're happy with it, share it so Venmo users can see it.

Start Fundraising 

With your profile ready, you can collect donations, launch fundraising campaigns, and more. 

Promoting Your Venmo Donation Option

Getting the word out about your nonprofit's Venmo donation option can really help boost your donations. 

• Make and Share How-To Guides

Create a quick video or a simple guide that shows how to donate to your organization using Venmo. It will help your donors understand how to use Venmo and encourage them to donate this way.

• Promote on Social Media

Talk about your Venmo account on your nonprofit's social media. 

You can post about it and put your Venmo link or QR code in your bio. When you share your Venmo QR code, it makes it super easy for people to donate right away.

• Update Your Donation Page

Make sure your donation page says Venmo is an option. When donors see they can use Venmo, they'll know they have many ways to support your nonprofit.

• Mention Venmo in Emails

Include your Venmo info in your newsletters. Just a quick note that you now accept Venmo can get both new and existing donors to think about using this easy option.

• Teach Your Donors About Venmo

Some of your supporters might not know much about digital payments. 

Share information that helps them understand how Venmo works. It can make more people feel comfortable donating this way.

• Talk About Venmo's Benefits 

Tell people why Venmo is a great choice for donations. 

Mention how easy it is to use, its safety features, and how it lets people donate instantly. Knowing these benefits can make potential donors more likely to give using Venmo.

Venmo's Limitations for Nonprofits

Venmo, while popular and user-friendly, presents specific limitations that are important to understand for nonprofits.

• Venmo doesn't provide tax receipts, which are needed for donations over $250, as per IRS rules. 
• Venmo doesn't allow for recurring donations, which are key for consistent support.
• The app doesn't easily connect with donation management software, requiring manual data input and increasing error chances.
• There's a $100,000 limit on standard transfers and a $50,000 limit on instant transfers per week, affecting large donation handling.
• Choosing instant access to funds means extra fees, reducing the total amount available for your cause.
• You get basic donor info but not full integration with CRM systems, so you are missing out on key data for relationship building.
• Your nonprofit pays transaction fees with Venmo, potentially cutting into the donation amount.

The Role of Venmo in Nonprofit Fundraising

While exploring the use of Venmo for nonprofit donations, it's clear that there are both advantages and challenges. However, the benefits of using Venmo in your fundraising strategy can significantly outweigh the limitations.

Adding Venmo to other donation methods that have more traditional features for charities means you get the best of both worlds. You take advantage of Venmo's benefits and use other tools to make up for its downsides.

So, even with some obstacles, Venmo's benefits for charities are too good to ignore. By making Venmo a part of how you raise money, you're making it easier for lots of your supporters to donate. 

Plus, you could bring in more donors and make your charity more known in the digital world.