When was the last time you wrote a check or carried cash? Right...
Digital payments are becoming the norm. So why not use modern financial tools like Cash App to streamline your donation process?
With over 1.8 million nonprofits in the U.S. alone, leveraging easy-to-use platforms like Cash App can make your fundraising efforts more efficient.
Here's exactly how you do it.
Cash App - A mobile payment platform developed by Block, Inc. (formerly Square). It allows users to send and receive money instantly, pay for goods and services, and even invest in stocks and cryptocurrency. |
The platform is widely used for charitable contributions, particularly by younger donors and communities where mobile transactions are more common than traditional bank payments. |
How to Use Cash App for Nonprofit Donations
You're looking for mobile donation solutions that offer simplicity and low fees.
While Cash App does not have a dedicated nonprofit account like Stripe for nonprofits, you can still receive donations through Cash App for Business accounts.
However, while Cash App offers simplicity, it's limited in key nonprofit fundraising features such as recurring donations, automated tax receipts, and donor management tools.
It's also extremely important to ensure you set it up the right way to avoid compliance issues, fund accessibility problems, and donor confusion.
Here’s how to do it correctly:
1. Setting Up a Cash App for Business Account
You'll want to create a Cash App for Business account rather than using your personal account.
Important note: If you receive donations to your personal account, it doesn't count as a tax-deductible donation.
Your Cash App for Business Account provides features such as:
A unique $Cashtag for branding and visibility
Ability to accept larger donations
Cash App QR codes for quick in-person transactions
To set up a nonprofit Cash App account:
Download Cash App from the App Store (iOS) or Google Play (Android).
Sign up with an official nonprofit email address to maintain professionalism.
Enter your business Debit Card information or skip for now.
Create a personal account with your legal information.
Create a custom $Cashtag (e.g., $YourCharityName) for easy donor recognition.
Choose “Create a Business Account” from the personal account.
Wait for verification.
2. Accepting Donations via Cash App
Your nonprofit can receive donations in several ways:
Direct Peer-to-Peer Donations: Donors can send money directly using the nonprofit’s $Cashtag.
QR Code Donations: Cash App generates scannable QR codes that can be displayed on websites, social media, or printed materials for easy mobile giving.
Cash Card for Spending Donations: Nonprofits can request a Cash Card to access and use funds without transferring to a bank account.
Because Cash App supports instant payments, it can be highly effective for fundraising events, emergency relief efforts, and grassroots campaigns where quick access to funds is essential.
How Cash App Compares to Other Nonprofit Payment Processors
Feature | Cash App for Nonprofits | PayPal for Nonprofits | ||
Transaction Fees | 2.75% for Business accounts | 1.99% + $0.45 for registered charities | 2.2% for 501(c)(3) organizations | 1.9% + $0.10 per transaction |
Recurring Donations | Not supported | Supported | Supported | Not supported |
Instant Transfers | Available | Available (with fees) | Available (with fees) | Available |
Tax Receipts | Manual processing required | Automated | Automated | Manual processing required |
Multi-Platform Integration | Limited | Strong integrations | Strong integrations | Limited |
Cash App works best for small nonprofits, churches, and grassroots organizations looking for a fast, simple way to accept donations.
However, for nonprofits needing recurring donations, automated tax receipts, and robust donor management, there are better choice.
Key Considerations Before Using Cash App for Nonprofits
Before deciding to use Cash App for nonprofit donations, organizations should consider:
Tax compliance – Cash App does not issue tax-deductible donation receipts, so nonprofits need to track donations manually.
Donor management – Cash App does not offer CRM integration or donor analytics.
Security risks – Since Cash App is primarily a peer-to-peer payment app, it lacks advanced fraud protection features found in traditional payment processors.
1. Implement a System for Tax Compliance
Since Cash App does not automatically issue tax-deductible donation receipts, your organization will need a manual system for tracking donations and issuing receipts to donors.
Consider pairing Cash App with a donor management system (DMS) or using spreadsheets to keep records for tax reporting purposes.
2. Promote Multiple Donation Options
While Cash App is a great tool for quick, mobile donations, it’s not a one-size-fits-all solution.
Many donors prefer credit/debit cards, ACH transfers, or PayPal for their charitable contributions.
To maximize fundraising potential, consider integrating Cash App alongside platforms like Stripe, PayPal, or Givebutter to offer a variety of payment methods.
3. Ensure Proper Fund Management & Security
Because Cash App lacks nonprofit-specific fraud protection, organizations should be cautious when accepting large donations or transferring funds.
It's best to regularly reconcile Cash App transactions with your nonprofit’s bank account and accounting software to avoid mismanagement.
Final Thoughts on Using Cash App for Nonprofit Fundraising
Cash App provides an easy-to-use, low-cost option for nonprofits looking to accept quick, mobile-friendly donations.
While it may not replace full-service nonprofit fundraising platforms, it can serve as a complementary donation tool alongside platforms like Givebutter, PayPal, Fidelity, and Stripe.
For nonprofits considering Cash App:
Use a Business Account for credibility and security
Offer alternative payment methods for recurring donors
Implement manual tax receipt tracking to maintain donor records
With the right strategy, Cash App for nonprofits can be an effective way to expand donation options, engage mobile-first donors, and streamline digital fundraising efforts.
Let's Talk
As someone who's founded and run a nonprofit myself, I understand the importance of getting these decisions right.
Want to make sure you're making the best choice for your organization? Let's talk. I offer free consultations where we can:
Evaluate your current payment processing setup
Analyze whether Cash App makes sense for your specific needs
Identify opportunities to reduce processing fees
Create a clear roadmap for optimizing your donation channels
Discuss best practices for tax compliance and donor management
Having been in your shoes as a nonprofit leader, I'll provide straightforward guidance to help you make informed decisions about your payment strategy.
See you soon!
-Johnny
