If you landed here, you’re probably wondering if you can use Venmo for nonprofits (which includes using Venmo for PTAs, HOAs, churches, and charities)? The answer is layered: Yes, you could with Venmo’s charity profiles. But should you use Venmo for nonprofit fundraising?
Our recommendation is no. Venmo wasn’t developed to serve groups, so it lacks features to support nonprofits. Here, we’ll look at a few specific features to pinpoint why Venmo isn’t great for nonprofits.
5 Challenges with Venmo for Nonprofit Fundraising
Full disclosure: We use Venmo for personal needs, but they don’t always meet groups’ capacity and regulatory needs. Here’s why:
1. Venmo doesn’t provide tax receipts.
The IRS requires nonprofits to send a receipt for all donations above $250, and donors need printed or emailed confirmation of a charitable contribution to claim it. Failure to comply can compromise your 501(c)(3) status. Although Venmo’s charity profiles issue a transaction receipt, it doesn’t include IRS-required information. (We’ll refer you to the experts for details on all of the above.)
2. Venmo charity profiles are connected to one individual.
To sign up for a Venmo charity profile, you first need to create a Paypal business account. This account then needs to be tied to the same person who is setting up the Venmo account. You leave only one person with the account credentials and access to your money. And what happens if that point-person leaves without a proper handoff? Who will receive the “Forgot Password?” email?
3. Venmo limits weekly spending.
In general, people can spend only $299.99 per week* on Venmo. If you are running a capital campaign, you’ll instantly set a cap on what donors can give. Sure, they can return the following week, or they can complete Venmo’s identity verification to give more, but both add hurdles to what you want to be a seamless process.
*Amounts as of August 2024
4. Tracking and reporting are cumbersome.
Venmo’s endless “feed” interface means sifting through each payment to categorize it manually. You can ask people to include payment details on Venmo, but inevitably some forget or don’t leave enough information. And while you can download statements for your Venmo charity profile, the data that is included is only as good as what was collected in the description field.
5. Donors must download the Venmo app.
While Venmo is a common app, there are a lot of people who don’t use it and don’t want to sign up just to donate to your organization. Using a payment system that requires an account and connecting a bank account, can limit your donor pool.
With Venmo, you’re depending on something similar to a check’s blank memo line to identify payments.
How Cheddar Up Solves the Challenges of Using Venmo for Nonprofits
In addition to collecting money, Cheddar Up is an efficient group management tool. Here’s a quick look at how our features support nonprofits or scroll down to get more information.
credit, debit, eCheck, or cash QR code payments Fundraiser bar Message center Open donation amount Recurring donations Donor information forms Fundraiser landing page
Sign up forms, Waivers, Dues collections, Tickets, Group landing pages, Gift collections, Report center, Message center, …and much more!
The Ideal Alternative to Venmo for Nonprofits and PTAs
So while you can use Venmo for nonprofits, we happen to think there is a much better alternative for your organization. Here are a few of the many reasons why:
1. Cheddar Up sends customizable receipts after every transaction.
We automatically email a confirmation after every payment received on our platform and you can customize the message. Include the IRS-required tax receipt information in the text box, and you’ve saved your team a follow-up step.
2. Cheddar Up offers multiple managers with specified permissions.
You can add or remove as many managers as you need, each under their own personal login. Additionally, you can limit what each manager can see and do on your group’s account. This makes for easy handoffs when teams and boards change.
3. We don’t impose any limits.
On how much you can collect or withdraw!
4. We offer fundraising-specific features.
You can choose to add a fundraising goal progress bar, so donors can see how much more you need and help boost your fundraising efforts. Use the message center to send campaign reminders or thank you notes.
5. Cheddar Up offers flexible payment options, including recurring payments.
Cheddar Up allows payers to pay via debit card, credit card, or echeck. You can also offer cash and check payments and we’ll automatically fold them into your online totals! Having more options provides payers more convenience and freedom to give.
Bonus: You can also set up recurring payments to encourage regular donations. Fundraisers with recurring donation options typically raise more than those without it.
6. The fees are flexible too.
Your organization has the option to absorb fees or pass the fees to the payer. Because nonprofits and PTAs operate on donor funding, we recognize that sometimes you may want to take on smaller fees to encourage more giving. Other times, such as high-dollar campaigns, you can’t afford to.
7. Payers do not have to create a Cheddar Up account.
This is one of our true points of distinction! People can choose to pay without creating an account, which means donating is truly as simple as click and pay.
8. Reporting is a breeze.
Not only does Cheddar Up automatically sort and track every payment received, you can also access and download a summary of your entire Cheddar Up history in a few simple clicks.
9. Payments are only the beginning
With Cheddar Up, you get so much more than just payment collection:
- Schedule volunteers for your event with our sign up forms.
- Collect waivers for any activities at the fundraiser.
- Easily manage event ticket sales and entry with QR code tickets.
Your payers will 🧡 that they don’t need to download an app or create an account to pay on Cheddar Up.
Turn your time into money
We know every minute matters to a nonprofit. We help automate your essential funding processes so that you can spend less time on logistics, more on your mission.
