How to Accept Donations Online with Stripe: A Step-by-Step Guide

Whether you’re researching payment platforms for the first time or looking for a better alternative to your current provider, you’re sure to have come across Stripe. This payment processor stands out as a versatile, user‑friendly option for nonprofits, charities, churches, schools, and community groups.

In this guide, you’ll discover why Stripe is a leading choice among all types of organizations and learn how to use Stripe to accept donations. We’ve also included best practices and top tips to help you make the most of Stripe donations. 

Why Use Stripe for Donations?

Let’s kick off with the obvious question that springs to mind: Why use Stripe for donations? There are actually several reasons why so many organizations opt for Stripe to power their donations. These are the most common:

• Trusted, secure platform: Stripe offers permanent card industry (PCI) compliance through secure payment processing with built-in fraud detection and encryption.  
• Discounted processing fees: It is nonprofit-friendly. The payment platform offers qualifying nonprofit organizations a discounted processing fee for accepting donations.
• Easy integration options: Stripe supports payment links, checkout, and recurring payments. You can embed Stripe for accepting donations without any coding expertise. Stripe’s ease of use is one of the main reasons we recommend that people choose Stripe. 
• Global reach & multi‑currency support: For those with a global reach, it accepts donation payments in 135+ currencies across 195 countries, crucial for nonprofits operating internationally. 

Is Stripe Right for You?

Before integrating Stripe donations, consider if the product aligns with your needs:

Ideal Users

There is no single ideal user because all types of users benefit from Stripe payment processing. 

Online businesses, software-as-a-service (SaaS) providers, startups, and businesses of all sizes and across all sectors use Stripe. And increasingly more nonprofits, charities, and fundraising platforms are switching to Stripe, too.

If you want user-friendly solutions that support client-driven giving and secure online donation processing, Stripe will work for you.

Considerations

To qualify for Stripe donations' discounted fees, you’ll have to meet certain criteria.

• You’ll have to process 80% or more of your donation payments on Stripe. Also, you’ll have to provide the platform with your Employer Identification Number (EIN) or a letter from the Internal Revenue Service (IRS) designating 501(c)(3) status.
• Stripe is PCI‑compliant and handles financial regulations, but you must maintain nonprofit verification and proper reporting.
• Although Stripe is user-friendly, some technical know-how is advantageous for setup. 

How to Set Up Stripe Donations (Step‑by‑Step)

1. Create a Stripe Account

Register on the Stripe platform with your nonprofit’s business name, address, and bank account details. Submit documents supporting your tax-exempt status (EIN, 501(c)(3), charity registration, etc.) and confirm ≥ 80% donation volume. 

Once verified, your organization can access the nonprofit discount.

2. Choose How to Collect Donation Payments

Stripe offers multiple methods for collecting donation payments. Choose between:

• Payment links: Generate a secure, Stripe-hosted link for one-time or recurring donations. These links can be shared via your email newsletters and social media pages. They can also be customized with your unique branding.
• Embedded forms: Use Stripe Checkout for a hosted donation page, or Stripe Elements for inline forms on your website.
• Third‑party integrations: Tools like fundraising platforms, CMS plugins, or SaaS providers integrate with Stripe easily.

3. Enable Both Once‑Off and Recurring Donations

To accept recurring gifts, enable Subscription or Payment Link with recurring settings docs.stripe.com. 

Offer preset tiers for Stripe donations, as this makes it easier for donors to select the amount that suits them best. But offer an “other amount” option, too. Set intervals (monthly, quarterly, annual) and allow donors to manage their donation subscriptions via the Stripe customer portal.

4. Design Your Donation Experience

Make the donation experience more engaging:

• Branding: Never miss an opportunity to reinforce awareness and recognition of your organization. Use your logo, colors, and design in your Stripe donations forms and hosted pages. 
• Mobile optimization: Many of your donors will use their mobile devices to action donation payments. Stripe forms adapt automatically, but test on both iOS and Android to ensure that they’re mobile-friendly.
• Thank‑you workflow: Donor relations extend beyond asking for donations. Establish a thank-you workflow. Configure thank-you pages, post-donation emails, or automated receipts via API or confirmation flows. This will encourage continued support. 

Best Practices When Using Stripe for Donation Payments

Keep it Simple

Don’t overcomplicate donations with long forms; you may scare people off from donating.  Only ask for the donor’s name, email, and payment details in your donation forms. Of course, you may want to request additional information for corporate donations, but keep it as simple as possible. 

Include Preset Amounts

Establish preset amounts to guide donors who would otherwise be unsure of an appropriate donation amount. Recommended tiers can boost average gift size, but include a range to suit donors with different budgets.

Mobile‑First

Philanthropists are usually very busy people. So, meet them where they are, and make the donation experience more convenient for them, with mobile-friendly forms. This means they should load quickly and look good on mobile devices.

Dashboard Monitoring

Use Stripe’s dashboard to track volume, recurring donation stats, and failed payments. This allows you to assess how effective Stripe payments are for your nonprofit and identify any issues early so you can address them quickly. 

Include Automated Retry Tools

Failed and missed payments happen. Stripe lets you take a proactive approach to these common issues, with smart retry and card updater options for failed payments. Customize the retry options so that Stripe reattempts the charge according to your specified schedule.

Compliance and Reporting

Stay up-to-date with financial reporting and export your donation records for audit and tax compliance. And maintain your nonprofit verification to continue to access discounted processing fees for Stripe donations. 

Our Top Tips

1. Be transparent. If you previously used another payment processing platform and have decided to switch to Stripe, inform your regular donors of this. Transparency goes a long way in promoting continued financial support. 
2. Apply early for nonprofit pricing. Use your EIN or charity number and confirm donation volume eligibility. The sooner you do this, the more you’ll save on processing fees, and that means more money for your cause. 
3. Use dashboard analytics to track churn, average gift, and lifetime value. This helps to gauge and monitor impact and donor behavior over time. It gives you the insights you need to improve your future planned giving schedules. 
4. People like to be in control of their finances, including donations they make to nonprofits. Provide donors with more control over their donations. Use Stripe’s customer portal so donors can update payment methods or cancel subscriptions.

Conclusion

Are Stripe donations right for you? If you’re looking for a secure, trusted payment processing platform for your nonprofit or fundraising platform, it might be the perfect solution. It’s easy to use and mobile-friendly and supports a wide variety of payment options and currencies internationally.

BiddingOwl is the auction and fundraising software that gives you the tools to bring in more donations. But Stripe helps you process those donation payments your way. Thanks to our integration with Stripe, raising the funds your organization needs is even easier.