Maximizing Donations: The Impact of Payment Options on Nonprofit Donor Experience  

Nowadays, time is a hot commodity—and we expect every transaction we encounter to let us tap, swipe, or scan to get the job done quickly. The same goes for online transactions, including donating to nonprofits. In fact, the nonprofit donor experience relies heavily on the ease and convenience of the donation process.  

As the donor experience continues moving into the digital space with added conveniences, and with the growth of younger, more technology-savvy donors, it’s important for nonprofits to be proactive with their technology. According to CapitalOne Shopping Research, it’s estimated that 54% of online transactions will be made by digital wallets by 2026. For some organizations, Giving Tuesday 2023 saw 43% of gifts made using a digital wallet, a massive growth from digital wallet usage during Giving Tuesday in years past. Read on to find out why you should leverage digital wallets to improve your donor experience and maximize donations for your nonprofit.  

Trust and Security 

With so many donors moving toward the convenience of online transactions, it’s important to address possible safety concerns. Trust and security are top of mind for many potential donors. Trust in charities has been on the decline, with only 52% of the U.S. public indicating trust in nonprofits in 2023, down 7% from 2020. In addition, 57% of Americans say they worry about being financially scammed, and for good reason. Fifteen percent of Americans say they or another household member was the victim of scamming in the past year. 

How can nonprofits re-build that trust and create a secure environment for donors? Offering reputable payment options on your donation form is one way to increase donor trust. Donors want to know that their personal and financial information will be kept safe by both the payment processor and the nonprofit. For example, according to a TRC Online Survey commissioned by PayPal, 93% of PayPal users surveyed said that they trust nonprofit organizations that offer PayPal.  

Donors want to feel confident that their financial information is secure when donating. By offering payment methods through your donation form they’re familiar with, such as well-known credit card processors or reputable digital wallet services, your nonprofit can instill a sense of trust and security. With donors giving their personal and financial information to support your mission, it’s essential they feel secure and proud of their impact. 

Make it Easy to Give: Convenience and Accessibility  

The last thing you want is to deter potential donors with confusing online transactions. Instead, make it fast and easy to give. GiveSmart offers a variety of donation payment options through our donation forms, making it seamless for donors and easy for nonprofits to manage donations all in one place. According to a Nielsen survey commissioned by PayPal, 40% of U.S. donors who use PayPal (versus a typical checkout method) do so because they consider it the fastest way to donate. 

When considering the donor experience, be sure to listen to their preferences and meet them where they’re at. By offering different donation payment options through your donation form, donors are more likely to find an option they’re comfortable using. For example, a donor may find your solicitation email or social media post while scrolling on the bus, where they don’t want to pull out their wallet, or they’re on the couch and don’t want to get up to find their purse. With the average person spending 6 hours and 37 minutes a day on their phones, that’s where payment options such as Venmo come into play. By utilizing familiar payment methods, nonprofits can make the donation process more convenient for donors, which is a win-win for everyone. 

Another factor to consider when thinking about payment methods is your target age group. Understanding these donor preferences is essential to ensuring organizations can sustain both short-term and long-term support. Increasingly, the majority of donors prefer to give online. Giving USA’s Giving by Generation report found that 76% of Gen Z and 81% of Millennial giving occurred online in 2022, compared to 69% for Gen X, and 61% for Boomers.  

Different demographics may have preferences for specific payment methods based on factors such as age, geography, or technological literacy. By offering a variety of familiar payment options, organizations can cater to the diverse preferences of their donor base and ensure accessibility for all. This inclusivity enhances the donor experience by making it easier for everyone to participate and contribute to the cause.  

Maximizing Giving 

By providing donors with a positive donation experience, you’re increasing the likelihood of future giving. So, it’s important to make a good first impression. By offering familiar payment screens, donors are more likely to donate quickly.  

Also, keep in mind that the more payment options you have, the more likely a donor’s preferred payment method is available for them to use. More than half of the people surveyed by Forbes in 2023 said they’d stop shopping with a merchant that doesn’t accept payments from digital wallets. You don’t want to lose a potential donor due to limited payment method offerings. When donors encounter payment methods they’re unfamiliar with, it can introduce friction into the donation process, which can lead to hesitation or even abandonment of the donation altogether. Offering familiar payment methods minimizes this friction and increases the likelihood of completing the donation.  

The bottom line – if the donation process is straightforward and convenient, donors are more likely to give again. Most donors appreciate organizations that make it easy for them to support a cause they care about without facing hurdles or complications during the donation process.  

Create a Positive Donor Experience 

When it comes to providing different payment options, the outcome is simple: reducing barriers maximizes giving and provides a more positive donor experience. Payment methods play a crucial role in shaping the donor experience by influencing trust and security, and accessibility and convenience. By offering diverse payment methods, nonprofits can maximize giving, improve the donor experience, and increase donor retention.  

Be sure to continuously review and enhance your nonprofit’s payment offerings to improve overall donor satisfaction and retention. By meeting donors where they’re at and providing familiar payment offerings, your nonprofit can eliminate missed revenue and “abandoned carts” and create more positive opportunities for donors to help your nonprofit thrive.   

If you want to dive even deeper into retaining donors, take a look at our Go-To Guide to Donor Retention.