Payment Processors That Work With Zeffy and Other Nonprofit Fundraising Platforms
How Zeffy Connects to Stripe, PayPal, and Other Payment Processors
Zeffy is a fundraising platform built for nonprofits, and it does not process payments itself. Instead, Zeffy connects to third-party payment processors — companies like Stripe, PayPal, and Square that actually handle the money moving from a donor's bank account or card to your nonprofit's account. When someone donates through a Zeffy fundraiser, Zeffy collects the donation information, passes it to the processor you have chosen, and the processor charges the donor and deposits funds into your bank account.
This separation matters because it means your choice of processor affects your fees, how fast you receive money, which payment methods donors can use, and what happens if there is a dispute. Zeffy itself does not take a cut — it charges a flat platform fee — but the processor does. Understanding which processor works best for your nonprofit requires knowing what each one costs, how they handle nonprofit transactions, and what support they offer.
Key Takeaways
- Zeffy requires you to connect a payment processor like Stripe, PayPal, or Square; Zeffy does not hold the money itself.
- Stripe charges a percentage per transaction plus a fixed fee, and offers the lowest rates for nonprofits through its Stripe for Nonprofits program.
- PayPal and Square also offer nonprofit discounts, but their fee structures and processing speeds differ from Stripe.
- You can change processors later, though you will need to update your Zeffy settings and any active fundraisers will pause until the new processor is connected.
- Each processor has different requirements for nonprofit verification, so check what documents you will need before you start the connection.
Stripe: The Default and Lowest-Cost Option for Nonprofits
Stripe is the most common processor used with Zeffy, and it offers the lowest transaction fees for registered nonprofits in the United States. Through Stripe for Nonprofits, may be able to access organizations pay 0% + $0.30 per transaction for online donations, meaning Stripe takes only the 30-cent fixed fee and no percentage of the donation amount. For comparison, Stripe's standard rate is 2.2% + $0.30, so the difference grows with larger donations.
To use Stripe for Nonprofits rates, your organization must be a registered 501(c)(3) nonprofit, a registered charity in Canada or the UK, or a registered nonprofit in certain other countries. Stripe will ask for your EIN (Employer Identification Number) and IRS information letter during setup. Processing typically takes one to two business days, and Stripe deposits money directly to your bank account. Stripe also does not charge setup fees, monthly fees, or fees to disconnect.
One limitation: Stripe for Nonprofits does not cover all payment methods. ACH bank transfers and certain international cards may have different rates. Also, if your nonprofit loses its 501(c)(3) status, you will automatically move to standard rates, and Stripe will notify you of the change.
PayPal: Higher Fees but Faster Approval for Some Nonprofits
PayPal also offers a nonprofit discount program. may be able to access nonprofits pay 1.99% + $0.49 per transaction for online donations, which is higher than Stripe for Nonprofits but lower than PayPal's standard 2.2% + $0.30 rate. PayPal's nonprofit program does not require 501(c)(3) status in all cases — it covers certain charitable organizations, educational institutions, and government agencies, so may be able to access is broader than Stripe's.
PayPal typically approves nonprofit accounts faster than Stripe, sometimes within hours rather than days. Funds settle to your bank account within one to two business days. PayPal also allows donors to pay using PayPal balance, credit cards, debit cards, and bank transfers, which can increase donation completion rates if your donors already have PayPal accounts.
The trade-off is cost. Over time, the difference between Stripe's 0% + $0.30 and PayPal's 1.99% + $0.49 adds up. On a $100 donation, Stripe charges $0.30 and PayPal charges $2.49 — a difference of $2.19 per donation. For a nonprofit processing $10,000 in monthly donations, that difference reaches roughly $220 per month or $2,640 per year.
Square: Mid-Range Fees and Strong Offline Integration
Square offers nonprofit pricing at 1.5% + $0.15 per online transaction for registered nonprofits, which falls between Stripe for Nonprofits and PayPal. Square requires 501(c)(3) status and verification through their nonprofit program. Processing and settlement work similarly to other processors — typically one to two business days to your bank account.
Square's strength is integration with offline giving. If your nonprofit also collects donations in person using Square readers or terminals, managing both online and offline donations through one processor can simplify accounting and reconciliation. Square also offers invoicing tools and donor management features that some nonprofits find useful, though these are available through other platforms as well.
Square's fees are higher than Stripe for Nonprofits but lower than PayPal. On a $100 donation, Square charges $1.65 compared to Stripe's $0.30. For smaller nonprofits or those already using Square for in-person payments, the convenience may outweigh the cost difference.
How to Connect a Processor to Your Zeffy Account
The connection process is similar across processors. Log into your Zeffy account, go to Settings or Payment Methods, and select the processor you want to use. Zeffy will redirect you to that processor's website, where you will create an account or sign in to an existing one. The processor will ask for your nonprofit's legal name, EIN, bank account information, and verification documents like your IRS information letter or articles of incorporation.
Processing time varies. Stripe for Nonprofits typically takes one to three business days after you submit verification. PayPal may approve within hours. Square usually takes one to two business days. During this time, your Zeffy fundraisers will not be able to accept donations, so plan your connection before you launch a campaign.
Once the processor is connected and verified, Zeffy will show it as active in your settings. You can then create fundraisers, and donations will flow through that processor. If you later want to switch processors, you can disconnect the current one and connect a new one through the same settings menu. Your fundraiser links will remain the same, but donations will pause until the new processor is active.
Comparing Fees Across Processors
| Processor | Nonprofit Rate (Online) | may be able to access | Typical Settlement Time |
|---|---|---|---|
| Stripe for Nonprofits | 0% + $0.30 | 501(c)(3) or registered charity | 1–2 business days |
| PayPal Giving Fund | 1.99% + $0.49 | Broader may be able to access; not limited to 501(c)(3) | 1–2 business days |
| Square for Nonprofits | 1.5% + $0.15 | 501(c)(3) | 1–2 business days |
The table above shows the standard nonprofit rates for online donations. Actual fees may vary depending on payment method (for example, ACH transfers or international cards may have different rates), your processor's current promotions, or changes to their pricing. Always confirm current rates with the processor before you connect.
What Happens to Your Money During Processing
When a donor gives through Zeffy, the processor holds the funds briefly before depositing them into your nonprofit's bank account. This holding period is called the settlement cycle. For most nonprofits, settlement happens within one to two business days, though some processors offer next-day or same-day settlement for an additional fee.
During the settlement period, the money is not yet in your account, but it is also not at risk — the processor is holding it on behalf of your nonprofit. If a donor disputes the charge or requests a refund within a certain window (usually 180 days), the processor will reverse the transaction and deduct the amount from your next settlement or from your processor account balance.
This is why it matters which processor you choose. Stripe for Nonprofits deposits money faster and charges less, so your nonprofit has access to funds sooner and keeps more of each donation. PayPal and Square take longer and cost more per transaction, but they may offer other features or integrations that matter to your organization.
Switching Processors or Troubleshooting Connection Issues
If you want to change processors — for example, from PayPal to Stripe — you can do so through your Zeffy settings. Disconnect the current processor, then connect the new one. Your fundraiser pages will remain live, but donations will not be accepted until the new processor is verified and active. This usually takes one to three business days.
If your processor connection fails or is rejected, check that you have submitted all required verification documents and that your nonprofit's information matches exactly what is on file with the IRS or your state charity regulator. Typos in your legal name or EIN can cause rejection. If you are unsure whether your nonprofit meets the processor's may be able to access requirements, contact the processor's support team directly — they can tell you before you spend time on the application.
Some nonprofits find that their processor account is flagged for review after a sudden spike in donations or if donations come from many countries. This is a security measure, not a sign of wrongdoing. The processor will contact you with questions, and the review usually resolves within a few days. During review, your account may be temporarily limited, so it is worth knowing this can happen if you run a viral campaign.
Frequently Asked Questions
Can I use multiple payment processors with Zeffy at the same time?
No. Zeffy allows you to connect one processor at a time. If you want to switch, you must disconnect the current processor and connect a new one. Some nonprofits use Zeffy with one processor and a separate fundraising platform with another, but within Zeffy itself, only one processor can be active.
What if my nonprofit is not a 501(c)(3) — can I still use Zeffy?
Yes. You can connect to PayPal, which has broader nonprofit may be able to access and does not require 501(c)(3) status in all cases. You can also use Stripe or Square at their standard (non-nonprofit) rates, though you will pay higher fees. Check with each processor about your specific nonprofit type before you connect.
How long does it take to receive money after someone donates?
Typically one to two business days from the time of donation. The processor holds the funds briefly, then deposits them into your bank account. Weekends and holidays may extend this. Some processors offer faster settlement for a fee, but most nonprofits use the standard timeline.
What if a donor wants a refund?
You can issue a refund through Zeffy or your processor's dashboard. The refund goes back to the donor's original payment method and usually takes one to three business days. The processor's fee for that donation is not refunded to you — you absorb the cost of the refund.
Does Zeffy charge a fee on top of the processor fee?
Yes. Zeffy charges a separate platform fee (typically a percentage of the donation or a flat fee per donation, depending on your plan). This is in addition to the processor's fee. Check your Zeffy plan details to see the exact amount.