Nonprofit Insights & Giving Tips

How to Start Receiving Online Donations for Free (Complete Guide for Small Nonprofits)

In today’s digital era, donors need greater cooperation. Convenience, security, and transparency are expected. This is essential. Small nonprofits need an easy way to accept online donations for free without losing money on high membership costs or hidden platform fees.

Whether you are a local charity, community service organisation, or small nonprofit organization, learns how to set up online donations for your fundraising efforts will significantly improve your results. You can reach supporters anywhere, collect donations instantly, and automate receipts – all with little or no technical knowledge. During this time, more and more people are showing interest in making donations online.

In this comprehensive guide, we’ll walk you through how to start online fundraising from scratch, the differences between free and low-cost models, how to set up your first donation page, and how to build donor trust for long-term goals.

How to Choose Between Free Platforms vs. Low-Cost Payment Processing Models

When looking for the many ways to receive online donations, you’re likely to come across a mix of “free” and “low-cost” fundraising platforms. It’s essential to understand what “free” means.

It is crucial to understand both cost models.

Free donation platforms

These platforms don’t charge you any monthly fees or setup fees. They often allow donors to voluntarily cover payment processing fees, meaning your nonprofit receives 100% of the donation amount.

This is a good opportunity, but it is best to choose a platform that aligns with our goals.

Low-cost payment processing models

Even though the platform is free, the payment processor (such as Stripe or PayPal) will still charge a small fee. For example, if you fundraise, these fees typically range from 2.9% + $0.30 per transaction, depending on the region and card type.

In short, while you can’t eliminate processing costs (since banks charge them), you can choose a platform that removes platform fees – the extra percentage that many tools add on top.

Example Comparison of Free vs. Paid Platforms

Platform	Platform Fee	Processing Fees	Monthly Fee / Pro Versions & What They Offer	Ideal For
Donorbox	Standard: 2.95–3.95% per donation (varies by features). Pro: 1.75–2%. Premium: 1.6–2%. Donors can be asked to cover fees.	Standard gateway rates via Stripe/PayPal/ACH (e.g. ~2.2–2.9% + fixed fee) apply separately.	Standard: $0/mo. Pro: $150/mo for reduced fees, advanced customization, AI tools, more team members, API/Zapier, stock/crypto, branding. Premium: custom pricing with enterprise support & lowest fees.	Growing nonprofits wanting robust recurring giving, advanced features, and optimization at scale.
Givebutter	0% platform fee when optional donor tips are enabled. If tips are disabled: 3% platform fee.	With tips on: nonprofits effectively pay $0 (fees covered via tips & Givebutter Guarantee). With tips off: ~2.9% + $0.30 per transaction (standard processor rates).	Core platform: $0/mo with a full suite of fundraising tools. Givebutter Plus: starts around $29/mo+ (contact-based) for workflows, texting, advanced email, reporting, data hygiene, etc.	Orgs wanting modern, all-in-one fundraising & CRM with a true “free” option and rich engagement tools.
PayPal Donate Button	0% platform fee (no setup/monthly cost for the button itself).	Typically 2.89% + a fixed fee per donation; discounted charity rates available in some regions. The exact fixed fee varies by country/currency.	No pro plan specific to the Donate Button; advanced PayPal commerce/checkout products available separately if you need more customization.	Smaller nonprofits or grassroots causes that want instant setup, global trust, and simple embeddable buttons.
Fundly	0% platform fee for organizers.	Stripe processing at 2.9% + $0.30 per transaction.	No monthly fee and no distinct pro tier for core crowdfunding; features included in platform use.	Individuals, small teams, and campaigns want simple crowdfunding-style fundraising with straightforward fees.

Choosing a free online donations platform can increase your fundraising efficiency. Even with a small processing fee, savings can amount to hundreds of dollars annually compared to subscription-based software – a huge advantage for small nonprofits working with tight budgets.

Pro tip: When choosing platforms, look for transparency. Some tools advertise that they are “free” but don’t provide details like service or withdrawal fees. Always read the pricing page carefully before signing up, as some may be more expensive than others.

Also read: How to Choose the Right Donation Platform

Setting Up Your First Donation Page (Step-by-Step Technical Guide)

Once you’ve chosen your favourite free fundraising software, the next step is to create your first donation page. The process is easier than you think – you don’t need any coding experience or design skills.

Here’s a step-by-step guide to getting your first donation page live and ready to accept donations.

Follow the instructions here, and you will reach your goal.

Step 1: Choose a trusted free platform

There are many popular online fundraising platforms. Start by signing up for a popular free online donations platform. Platforms like Givebutter, PayPal Donate, and Donorbox let you set up a free account and start collecting donations right away. Look for the following platforms:

• No monthly or setup fees charged
• Offer customizable donation forms
• Offer secure payment gateways (SSL encryption)
• Let’s you add your branding (logo, mission, and colours).

Step 2: Verify your nonprofit details

To comply with online donations and tax regulations, you must verify your organization’s credentials under the laws of that country. This typically includes:

• Nonprofit organization registration certificate or 501(c)(3) letter (in the US)
• Official organization name and address
• Bank account details for receiving funds

This certification ensures that donor transactions are secure and compliant.

Step 3: Connect a payment processor

Payment processors like Stripe, PayPal, or Square handle financial transactions securely. Many nonprofit donation tools integrate seamlessly with these processors.

Things to consider when connecting your payment account:

• Use your company’s bank account (not a personal account).
• Verify your identity with your nonprofit organization documents.
• Enable multi-currency support if you need to accept international donations legally.

Step 4: Customise your donation page

Your page should truly represent your service organization’s mission. Use a clear headline, a short story, past service experiences, and visuals that inspire trust, even in a brief message.

Include these essential points:

• Your nonprofit organization’s logo and colors should be prominent.
• A brief mission statement or success story about your organization’s mission
• Donation options (one-time or recurring)
• Suggested donation amounts ($10, $25, $50, $100)
• Must have a secure payment badge or SSL symbol.
• Send a “Thank you” message with the confirmation email.
• It should be mobile-friendly so that donors don’t get confused — more than 60% of donors prefer to give via smartphone.

Step 5: Start Donor Fees

Many modern platforms offer donors the option to voluntarily pay a nominal processing fee. It’s like a simple checkbox on a donation form. This means you can accept online donations for free while also ensuring donors fully support your cause.

Step 6: Test and launch

Before sharing your donation page publicly, make a small test donation yourself. Make sure to:

• The transaction was processed correctly.
• Confirmation emails are sent automatically.
• The funds will be deposited into your bank account.

Once everything is working correctly, embed your donation form on your website, share it on social media, and include the link in your email newsletters.

How to Overcome Donor Trust Barriers When Accepting Online Payments

For small nonprofits, one of the biggest challenges is a lack of proper systems, which can hinder the ability to build donor trust. That’s why many donors are reluctant to enter their credit card details unless they can be confident in the security, transparency, and authenticity of their details.

Here are several ways to build trust and credibility with your online supporters.

Use Secure Payment Gateways

Always use donation forms that start with “https://.” This shows that your website is SSL-secured and encrypts donor data. Payment processors like Stripe, PayPal, and Square offer bank-grade encryption that protects donor information and data.

Show Full Transparency on How Funds Are Used

Be specific about how your donations will help. Instead of saying “Support our cause,” write something like this:

“Your $25 helps feed a child for a week.”

Real examples and their impact build trust faster than clear messages.

Show Proof of Legality

Include your nonprofit registration ID, address, and social proof (like testimonials or reviews). Adding official trust badges or verified nonprofit seals can help build trust, even with first-time donors.

Stay Connected with Donors Instantly

After someone donates, follow up immediately with an automated thank-you message along with their receipt. Make sure it includes these things:

• Donor name and amount donated, along with your organization’s details and logo.
• Your nonprofit organisation tax ID (if applicable).
• A short note about how their contribution will be used.

This quick recognition demonstrates professionalism, builds trust among donors, and encourages donors to support you again in the future.

Encourage Recurring Gifts

Once someone feels committed to your cause, they’re more likely to support you on a regular schedule. Add something like “Donate this monthly” to your form so supporters are more inclined to help consistently. Recurring gifts also provide predictable income, enabling your organization to plan long-term programs more effectively.

Multiple Ways to Promote Your Donation Page

Creating a donation page is just the first step. To start getting real support, your donors need to know that your organization exists. Here are some practical ways to share your donation link and encourage people to donate:

a) Social Media Platforms

Use platforms like Facebook, Instagram, X (Twitter), LinkedIn, and WhatsApp to promote.

Tips:

• Post regular updates with stories and images
• Add a donation link to your bio and captions.
• Pin your donation post to your profile
• Share testimonials from real donors to build trust
• Short caption idea: “Even a small contribution can make a big impact. Support our mission today.”

b) Email Newsletters

Email is still one of the fastest-growing digital channels. Send out monthly newsletters that include:

• A short story about your fundraising
• A link to your donation page
• Photos from recent activities
• A clear CTA (call-to-action)

Pro tip: Add a donate button at the top + bottom of each email so readers don’t miss it.

c) Website Integration

Your website is your digital identity.

Integrate the donation form into:

• Homepage banner
• Navigation menu (top)
• Footer section
• Personal campaign pages

The easier it is to find the donate button, the more conversions you will see.

d) Community Outreach

Offline awareness can still increase online donations.

Examples:

• Partner with local businesses
• Ask volunteers to share links.
• Add QR codes to printed brochures, banners, or event boards
• Scanning QR codes provides instant access to your donation page.

e) Track and Measure Donations

Once your page is live, track performance regularly.

Key metrics to monitor:

• Number of donations
• Amount of donations raised
• Average donation value
• Recurring donations vs. one-time donations
• Traffic sources (social, email, website)

Understanding data can help you implement strategies for better fundraising results.

Frequently Asked Questions

Can nonprofits really collect online donations for free?

Yes. Many platforms allow you to accept donations without setup fees or monthly charges. Payment processors (Stripe, PayPal, etc.) may still charge a small transaction fee – but many platforms allow donors to cover those costs at checkout. This means your organisation can receive full support.

What donor information should I collect?

Collect the minimum details of the user:

• Full name
• Email
• Donation amount

You may also request a phone number, mailing address, or permission to send updates. Always follow data privacy rules and keep donor information secure.

How long does it take to start accepting online donations?

The setup process is usually fast. Many free tools allow you to create an account and create a donation page within a few hours. The only thing that might take time is verifying your nonprofit status with the payment processor – once that’s done, you can start receiving donations right away.

Do non-profit organizations need a separate merchant account?

No. Today’s fundraising platforms already have integrated payment systems. They securely process the transaction and transfer the funds directly to your company’s bank account – no merchant account required.

What is the difference between platform fees and processing fees?

Fee type	Description
Platform fees	Charged by the fundraising tool (often 3–5% of each donation)
Payment processing fees	Stripe/PayPal charges the card to handle transactions.

Many “free” platforms eliminate platform fees – so you only pay standard processing charges, or donors can choose to cover them.

Example: Real-World Cost Allocation

Let’s say your nonprofit organization collects $10,000 in donations:

Platform type	Platform fees	Processing fee	Net amount
Payment Platform (5% + 2.9%)	$500	$290 (sale price)	$9,210
Free platform (0% + 2.9%)	$0 (0)	$290 (sale price)	$9,710
Free platform (donor covers fees)	$0 (0)	$0 (0)	$10,000

Smart Tips for Better Online Fundraising

• Keep donation forms simple — less detail, more interaction.
• Share stories and influence updates — emotional connection is essential.
• Promote your donation link on social media, WhatsApp, and newsletters.
• Place a clear “Donate” button on every page of your website.
• Track donor activity and publicly acknowledge supporters when appropriate.

Final Thoughts

One of the easiest ways for small nonprofits to make an impact is to receive donations online for free. There are no fees or charges for the software we use. With modern fundraising tools, you can build trust, reach your supporters across the globe, and make every rupee or dollar count, without having to pay for expensive software.

All you need to do is display it on the right transparent platform, set up your donation page, verify it yourself, and start sharing it with your community. It’s safe, fast, and incredibly effective, and it also helps more resources flow directly into the work that matters most.

Now it’s your turn: choose a free platform, create your donation page, and start raising funds for your mission today.