The Convenience of PayPal for Nonprofits: How It Improves Fundraising

The Keela Team • Mar 30, 2023
PayPal for Nonprofits blog header showing a person using PayPal

As a nonprofit organization, you are likely familiar with the challenges of fundraising and donation management. Fortunately, there are many online payment solutions available to make the process easier and more efficient. One of the most popular payment solutions is PayPal for nonprofits.

There are many benefits of using PayPal for your nonprofit organization. From easy donation processing to secure payment options and customizable features, donating through PayPal can help your nonprofit streamline your donation process and focus on achieving your mission.

Whether you are just getting started with online fundraising or looking to improve your current donation process, PayPal can provide the tools and support you need to succeed. Let’s dive into the many ways PayPal can benefit your nonprofit organization.

Current Trends in Mobile and Online Donations

As the world becomes increasingly digital, nonprofit organizations must stay ahead of the curve when it comes to online and mobile giving. Three trends in online and mobile giving for nonprofits that you should be aware of are:

  1. Mobile Giving: With the rise of smartphones and mobile devices, mobile giving has become an increasingly popular way for donors to support their favorite nonprofits. In fact, over 28% of online donations are made on a mobile device. To take advantage of this trend, make sure your website and donation pages are optimized for mobile devices. If you’re using Keela, you won’t need to worry about this as all of Keela’s donation forms are automatically optimized for mobile.
  2. Social Media Fundraising: Social media platforms like Facebook, Twitter, and Instagram have become powerful tools for fundraising and donor engagement. Nonprofits can use social media to create targeted campaigns, share impact stories, and engage with supporters who are already spending their time online.
  3. Personalized Donor Experiences: Donors are looking for personalized experiences when it comes to giving. They want to feel connected to your organization and understand the impact of their donations. To meet this demand, consider using personalized email campaigns, creating targeted donor journeys, and using data analytics to better understand your donors and create customized experiences.

By staying up-to-date with these online and mobile giving trends, your nonprofit organization can better engage donors, increase donations, and ultimately achieve your mission. Paypal can help you align these trends with your nonprofit, allowing you to stay ahead of the curve and raise more money.

Cover page of 5 Fundraising Trends guide

Want to Keep Tabs on Current Fundraising Trends?

Use this guide to learn how the nonprofit sector is adapting to the increasingly digital landscape and get tips on how your organization can take advantage of current opportunities.

What is PayPal and How Does it Impact Nonprofit Donations?

PayPal is an online payment platform that allows individuals and businesses to send and receive PayPal payments securely and conveniently. It was first introduced in 1998 as a way for individuals to securely send money online, and has since grown into a widely-used payment solution for businesses and nonprofit organizations alike. Today, PayPal offers a wide range of features and tools designed specifically for nonprofits, making it an ideal choice for organizations looking to streamline their donation process and raise funds more efficiently.

One of the key benefits of using PayPal for nonprofits is the ease and convenience of online donations. With PayPal, donors can quickly and easily make a donation to your organization using their credit card or PayPal account. This means that donors can donate from anywhere, at any time, making it easy to reach a wider audience and engage more donors. In addition, PayPal offers customizable donation forms and recurring donations options, making it easy for donors to set up regular donations and support your organization on an ongoing basis.

Another benefit of using PayPal for nonprofit organizations is the security and trust it provides. PayPal is widely recognized as a secure and reliable payment solution, with robust security features and fraud protection measures in place to protect donors and organizations alike. This can help to build trust with donors and provide them with the confidence they need to make a donation to your organization.

Why Should Nonprofits Use PayPal?

If you’re a nonprofit organization looking for a reliable and efficient way to manage online donations, PayPal is a solution you should consider. There are many benefits of using PayPal for nonprofits, including easy donation processing, customizable features, and robust security measures. Whether you’re just getting started with online fundraising or looking to improve your current donation process, PayPal can provide the tools and support you need to succeed.

Secure and Convenient Payment Processing

Nonprofits should consider using PayPal because it offers secure and convenient payment processing. As mentioned, PayPal is a widely recognized and trusted, payment gateway and platform, with robust security features and fraud protection measures in place to protect both donors and organizations. This can help to build trust with donors and provide them with the confidence they need to make a donation to your organization.

Access to a Large User Base

In addition to being secure and convenient, PayPal provides nonprofits with access to a large user base, which can help organizations to reach a wider audience and engage more donors. PayPal has millions of users around the world and by using PayPal to process donations, you can tap into this large user base and reach potential donors who may not have otherwise been aware of your organization.

No Setup Fees or Monthly Charges

PayPal is an ideal payment solution for nonprofit organizations because there are no set up fees or monthly charges to use the service. This means that you can easily and affordably manage your online donations without having to worry about additional costs or fees.

Additionally, PayPal offers competitive transaction fees, which means that a larger percentage of each donation can be invested directly into your mission. This can be especially beneficial for smaller nonprofits with limited budgets, as it allows you to efficiently manage your funds and allocate resources appropriately. If you’re considering using PayPal for nonprofits, you should pair it with a CRM that charges little or no transaction fees, such as Keela, to maximize the amount of each donation that is invested in your mission.

Integrations With Popular Fundraising Platforms

PayPal offers integrations with a number of fundraising platforms, making it a great choice of payment processor for nonprofits. One example of this is Keela, a popular fundraising platform for nonprofits that integrates with PayPal to provide a seamless donation process.

These kinds of integrations allow you to streamline your donation process, reduce administrative tasks, and ultimately focus on achieving your mission.

How To Set Up PayPal for Nonprofits and Increase Revenue

There are several ways that your nonprofit can use Paypal to drive donor engagement and increase revenue. Setting up an account is also fairly easy!

Setting up a PayPal Account for Your Nonprofit

Setting up a PayPal account for your nonprofit organization is a simple and straightforward process. To get started, go to the PayPal nonprofit website and click on the or “Start Taking Donations” or “Sign Up” button to create a Paypal Nonprofit account. From there, select the “Nonprofit Business Account” option and follow the steps to create your account. You will be prompted to enter information about your organization, such as your name, address, and tax ID number. Once you’ve completed the sign-up process, you can start accepting donations through your PayPal account.

Embedding PayPal Donation Buttons

Nonprofits can easily use PayPal to embed donation buttons on their website and social media channels, making it easy for donors to donate and support your organization’s mission.

To create a donation button, simply log into your PayPal account, click on the “Tools” menu, and select “PayPal Buttons.” From there, you can customize your donation button by choosing a button style, adding a donation amount, and setting up recurring donations if desired. Once your button is created, you can easily embed it on your website or social media channels by copying and pasting the HTML code provided by PayPal.

This makes it easy for donors to donate directly through your website or social media channels, without having to navigate away to a separate donation page. In fact, embedded donation forms see a 2.4x increase in conversion rates for one-time, recurring, and overall donations, so it’s important that nonprofits use embedded donation buttons and forms to drive more revenue!  

Creating Customized Donation Pages

Nonprofits can also use PayPal to create customized donation pages, which can help to increase engagement and support from donors. With PayPal’s Donation Pages feature, you can create a donation page with your branding, messaging, and imagery, making it easy for donors to understand the impact of their donation and the mission of your organization.

This feature also allows nonprofits to collect donor information, set up recurring donations, and track donor activity, all in one place.

Donation Page Checklist cover page

Improve Your Donation Page with this FREE Checklist

This checklist covers elements of your donation pages that you need to optimize to give your nonprofit the best chance at online fundraising success.

Best Practices for Nonprofits Using PayPal

While Paypal for nonprofits offers numerous benefits to nonprofits, there are some best practices that you can put in place to get the most out of it. By implementing these best practices, you will be able to effectively manage your PayPal donations, engage donors and ensure compliance to IRS and CRA regulations.

Tips for Donor Management and Engagement

Set Up Clear and Consistent Communication With Donors

Donors appreciate knowing how their contributions are making a difference. Send regular updates via email or newsletter to keep them informed of your organization’s progress and impact.

Customize Your Donation Process to Reflect Your Organization’s Brand

Use PayPal’s customizable features to create donation buttons and pages that reflect your nonprofit’s mission and brand. This can help to engage donors and build trust with your organization.

Provide a Seamless and Secure Donation Experience

Make sure that the donation process is easy and straightforward for donors. Test your donation process to ensure that it works smoothly and is secure. PayPal offers advanced security features, so make sure to take advantage of them to keep your donors’ information safe.

Strategies for Maximizing Donations Through PayPal

Offer Multiple Donation Options

Giving donors the flexibility to give using a variety of payment methods, such as credit and debit cards or PayPal accounts, can help to increase donations. Additionally, providing donors with the option to make a one-time or recurring donation can help to increase engagement and support from donors.

Leverage PayPal’s Social Media Features

PayPal offers social media integrations that allow you to accept online donations directly from your organization’s social media pages. By leveraging these features, you can reach a wider audience and make it easier for donors to donate through their preferred platform.

Make It Easy to Donate

Ensure that the donation process is easy and straightforward for donors. This can help to increase donations and improve the overall donor experience. Additionally, make sure to provide donors with clear instructions on how to donate and what their donation will support.

Ensure Compliance with IRS/CRA Regulations

Using PayPal for nonprofits, you can ensure compliance with the IRS (Internal Revenue Service) and CRA (Canada Revenue Agency) regulations. PayPal provides a range of features and tools designed specifically for nonprofit organizations to help them comply with these regulations.

For example, PayPal offers transaction reports that can be easily exported and shared with your accountant or bookkeeper. By using PayPal, nonprofit organizations can ensure that their financial records are accurate and up-to-date, which can help to avoid potential issues with the IRS or CRA.

How Keela and PayPal Work Together

The best way to maximize the use of PayPal for nonprofit organizations is to pair it with a CRM (Customer Relationship Management) software built specifically for the nonprofit industry.

Keela is a powerful CRM solution designed to help nonprofits manage their donor data, fundraising, and other organizational needs. One of the key features of Keela is its PayPal integration, which allows nonprofits to easily manage and accept donations and donor information through their PayPal account.

Keela and PayPal Logos

Streamline your donation processing using PayPal with Keela!

When you connect your PayPal account to Keela’s donation forms, you can collect donations online and have donation records updated with receipts sent automatically within Keela.

Why You Should Use Keela and PayPal Together

If you’re a nonprofit organization looking for a comprehensive solution to manage your donor data, fundraising, and other organizational needs, consider using Keela and PayPal together. Here are three reasons why:

Streamlined Donation Processing

Keela’s PayPal integration allows nonprofits to easily manage donations and donor information through their PayPal account. This can help to streamline the donation process and reduce administrative tasks, allowing your organization to focus on achieving its mission.

Automated Donor Information Tracking

Keela automatically tracks donor information from PayPal donations, including contact information and donation history. This can help your nonprofit to better understand your donors and engage with them more effectively. With Keela, the donor information from PayPal is then analyzed to provide you with key insights into your database and show you your strongest major and monthly donor prospects.

Customizable Donation Forms

With Keela’s customizable donation forms, you can create donation pages that reflect your brand and mission with easy drag-and-drop templates. The PayPal integration allows for secure and easy donation processing, while Keela tracks the donor data and integrates it into your CRM. This allows for a seamless donation experience for donors, while allowing you to build a stronger relationship with donors.

How to Use Keela and PayPal Together to Enhance Fundraising Efforts

Using Keela and PayPal together can enhance fundraising efforts for nonprofit organizations, resulting in increased revenue. Keela’s CRM features allow you to easily manage donor data, track engagement, and create targeted fundraising campaigns, while PayPal’s secure donation processing makes it easy for donors to give.

With Keela’s customizable donation pages and automatic donor tracking, you can engage more effectively with your supporters and build stronger relationships. The result is an enhanced fundraising effort that can lead to increased revenue, allowing you to make a greater impact in achieving your organization’s mission.

Keela’s Key Tools to Maximize the Use of Paypal

Leveraging Keela’s powerful CRM features in conjunction with PayPal can help you achieve your fundraising goals. Here are three top Keela features that can be leveraged with PayPal to increase revenue:

  1. Automation: Keela allows you to automate many of your fundraising processes, including sending thank-you emails and receipts to donors after a donation is made. This can help save time and effort, while also improving donor relationships.
  2. Donor Tracking: Keela tracks donor activity and automatically updates donor profiles with donation history, contact information, and engagement level. This can help your organization better understand your donors, and create targeted campaigns that will resonate with them.
  3. Customizable Donation Forms: Keela’s customizable donation forms make it easy to create donation pages that reflect your organization’s brand and mission. This can help increase donor engagement and ultimately lead to more donations.

Achieve Your Fundraising Goals with Keela and PayPal.

Learn how using PayPal alongside Keela’s CRM features such as automation, information tracking, and forms, can help increase revenue.

Potential Challenges and Opportunities for Nonprofits Using PayPal

While PayPal can provide many benefits to nonprofits, there are also some challenges and opportunities to consider. Here are some of the key challenges and opportunities to keep in mind:


  1. Paypal Nonprofit Fees: PayPal charges transaction fees to process and accept donations. While these fees are generally competitive, they can add up over time and reduce the amount of each donation that is invested back into your mission.
  2. Donor Trust: Some donors may be hesitant to use PayPal for donations, due to concerns about security and privacy. It’s important to address these concerns directly on your website and provide reassurance to donors that their information is safe.
  3. Payment holds: PayPal may hold funds for a period of time to help prevent fraud, which can create cash flow challenges for nonprofits that rely on donations to fund their operations.


  1. Convenience: PayPal offers a convenient and easy-to-use payment processing solution for donors, which can help to increase donations and engagement.
  2. Global Reach: PayPal has a wide user base and supports transactions in a range of currencies, making it a great choice for nonprofits with an international presence.
  3. Customization: PayPal offers a range of customizable features, such as donation forms and receipt templates, allowing nonprofits to tailor their donation process to their brand and mission.

Overall, the benefits of using PayPal for nonprofit organizations far outweigh the challenges. By addressing concerns around fees, donor trust, and payment holds, nonprofits can take advantage of PayPal’s many benefits!

Alternatives To PayPal For Nonprofit Organizations

There are many payment processing solutions available to nonprofits beyond PayPal. One popular alternative is Stripe. Stripe is a payment processing solution that offers similar features to PayPal, including easy integration with fundraising platforms and customizable payment forms. While both services offer similar features, there are some key differences to consider.

One advantage of Stripe is that it generally charges lower transaction fees than PayPal, which can result in significant savings for nonprofit organizations that process a high volume of transactions. Additionally, Stripe’s integration options and customizable payment forms make it a popular choice for nonprofits looking for a user-friendly payment processing solution. However, PayPal still has a larger user base and is a more widely recognized payment option, which can provide a level of comfort to some donors.

Ultimately, the choice between Stripe and PayPal will depend on the specific needs and budget of your organization. In addition to Paypal, Keela also offers a Stripe integration should that be the payment processor you choose!


In conclusion, using PayPal to accept donations can provide a range of benefits to nonprofit organizations, including convenience, customization, and access to a large user base.

By optimizing your PayPal account and leveraging its many features, your organization can streamline your donation process, engage more effectively with donors, and ultimately increase revenue to support your mission.

While there are some challenges to consider, such as fees and payment holds, PayPal remains a powerful payment processing solution for nonprofits. We also recommend exploring other payment processing options, such as Stripe, to find the solution that best fits your organization’s needs and budget. By selecting the right payment processor and using it effectively, your nonprofit can take your fundraising efforts to the next level and make an even greater impact in the world.

Headshot of Meredith Gray

About the author:

Meredith Gray
Head of Marketing, Keela

Meredith has always had a passion for work that makes an impact. Having spent over 7 years working in fundraising, she has gained extensive knowledge in marketing, peer-to-peer, events, and sponsorship and firmly believes that all successful fundraising strategies start with your data.

Having experienced it first-hand, she understands the challenges nonprofits face when building a fundraising strategy and loves connecting with other like-minded fundraisers to brainstorm new and creative ways to leverage data to increase revenue. When not working, Meredith can be found trying out one of Toronto’s diverse restaurants, breaking a sweat in a spin class, or researching her next travel destination.