Square for nonprofits: fees, features & fundraising tips

That’s where tools like Square can play a key role. With its simple setup and flexible payment options, Square makes it easy to accept donations in person, online, or even through mobile devices. For many organizations—especially those hosting events or just starting out—it’s a practical and trusted solution.

But Square is just one part of the bigger fundraising picture.

Many nonprofits use multiple tools to meet different needs at different stages of growth. For example, Square might be a go-to for event donations, while another platform might support personalized donor engagement, recurring giving, and fundraising automation.

In this guide, we’ll break down how Square works for nonprofits, where it fits best, and how it can work alongside other platforms—like Harness—to help you build a donation experience that grows with your mission.

What is Square for nonprofits?

Square is a popular payment processing platform that helps organizations accept payments quickly, securely, and with minimal setup. While it’s widely known among small businesses, many nonprofits use Square to:

• Accept donations at events and in person
• Sell tickets or merchandise
• Process online donations without the need for custom development

One of Square’s biggest strengths is its simplicity. Nonprofit teams don’t need technical experience or a dedicated IT department to get started—it works right out of the box. Square accepts all major credit cards, debit cards, and mobile wallets, and supports both in-person and online giving.

Its flat-rate pricing model also makes budgeting easier. You know what you’ll pay per transaction, without dealing with complex or fluctuating fees. This predictability is especially helpful for smaller organizations or those working with tight, event-based fundraising cycles.

How Square helps nonprofit organizations accept payments

One of the biggest challenges for nonprofits is making it frictionless to give. If the donation process is complicated—especially at events—potential supporters might not follow through.

Square addresses this by offering multiple ways to accept payments, allowing you to meet donors wherever they are: at a fundraising gala, a community table, or online.

Square Point of Sale app: A simple solution for in-person giving

Square’s free POS (point of sale) app lets your team accept donations using a mobile device and a card reader—no cash box or register required. It supports credit cards, debit cards, and contactless payments like Apple Pay and Google Pay.

Whether you’re staffed by volunteers or team members with minimal tech experience, the app is intuitive and quick to set up, making it easy to collect and track donations on the go.

Mobile device compatibility: Take payments anywhere

Square is designed for flexibility. With just a smartphone or tablet, you can start accepting donations from virtually anywhere—at a 5K, a farmers market, or a silent auction. That portability can help you capture more spontaneous giving moments during live events.

Processing and transaction fees for nonprofits

One of the most important factors when choosing a payment processor is understanding the cost of each transaction. While Square makes it easy to accept donations, it does charge a flat-rate processing fee for every gift received.

Square’s transaction fees (as of writing)

• 2.6% + $0.10 per in-person transaction (via card reader or POS app)
• 2.9% + $0.30 per online donation or invoice
• 3.5% + $0.15 for manually entered card payments (e.g., phone donations)

These rates are transparent and predictable, which is helpful for budgeting. However, unlike some nonprofit-focused platforms, Square does not offer discounted fees for 501(c)(3) organizations—something to keep in mind as donation volume grows.

What those fees mean in real terms

A $100 online donation would result in $3.20 in fees—leaving your nonprofit with $96.80. Multiply that by hundreds or thousands of donations per year, and the costs can add up.

For some organizations, this trade-off is worth it for Square’s ease of use and immediate functionality. Others may look to combine Square with tools that offer more fundraising automation, engagement, and long-term donor value.

Setting up a Square account for your nonprofit

If Square sounds like the right fit for part of your fundraising toolkit, getting started is quick and straightforward. You won’t need to go through a lengthy approval process or submit complicated paperwork—just some basic information about your organization.

Step-by-step: How to create a Square account for your nonprofit

• Gather your organization’s details – You’ll need your legal nonprofit name, Employer Identification Number (EIN), and verified bank account information.
• Sign up on Square’s website – Head to squareup and select “Get Started” to begin registration.
• Enter your nonprofit’s information – This includes a brief description of your mission and what types of payments you’ll accept.
• Link your bank account – Square will deposit funds into this account. Standard transfers typically take 1–2 business days.
• Choose your hardware (if needed) – For in-person donations, you can purchase a card reader or other point-of-sale equipment directly through Square.
• Set up your donation options – Customize your online checkout page, enable recurring gifts, and configure settings in your Square dashboard.

While Square’s setup is fast and accessible, many nonprofits also pair it with a platform like Harness to manage donor engagement, track giving trends, and launch campaigns with ease—all from one central hub.

Payout timing and bank integration

Once your Square account is active, donation funds are automatically transferred to your linked bank account. Standard transfers typically take 1–2 business days, which works well for most organizations. If you need faster access—such as during a live campaign or urgent appeal—Square also offers instant transfers for an additional 1.5% fee.

Donor data and security considerations

Square is PCI-compliant and uses encryption and fraud prevention tools to help safeguard donor payment information. It handles the transaction securely, but when it comes to donor engagement and long-term relationship-building, Square’s features are more limited.

That’s why many nonprofits pair Square with tools like Harness—which go beyond payment security to offer:

• Centralized donor profiles
• Personalized communication and giving journeys
• Insights into donor behavior, recurring giving patterns, and more

Think of it this way: Square helps you accept the gift, while Harness helps you grow the relationship.

Square’s key features for nonprofit organizations

Square isn’t just a payment processor—it also offers a handful of helpful tools that make donation collection and tracking more manageable, especially for smaller or event-driven nonprofits.

These features are designed to simplify the donation process, improve transparency, and keep your operations running smoothly.

Square Point of Sale (POS) for event fundraising

If your organization frequently hosts events, community fundraisers, or on-site donation drives, Square’s POS system provides a streamlined way to collect donations in person.

You can:

• Accept payments via card, tap, or mobile wallet using a reader and smartphone
• Track incoming donations in real time
• Issue digital or printed receipts to donors instantly

Because the system is intuitive, it’s a strong fit for teams with limited tech experience or volunteer-led events.

Online donation tools for easy digital giving

Square allows nonprofits to create online donation pages that can be shared on social media, linked in emails, or embedded on your website.

You can:

• Enable one-time or recurring donations
• Customize donation forms to align with your branding
• Add a donation button to your site for quick access

These options help you reach donors beyond in-person interactions and offer digital convenience, especially for younger or remote supporters.

Basic donor data and automation

Square automatically sends email receipts after each donation and tracks basic information such as donation amount and payment method. This is useful for year-end reporting and light follow-up, but may be limiting for nonprofits focused on long-term donor engagement.

That’s where a platform like Harness complements Square beautifully. While Square handles the payment, Harness automates:

• Donor segmentation and profiles
• Recurring giving optimization (via SmartAsk™)
• Personalized impact messaging
• Year-round engagement campaigns

The two platforms can work side by side, giving you both transactional ease and relational depth—depending on where your organization is in its fundraising journey.

Square vs. other nonprofit payment processors

While Square is a solid and accessible choice for nonprofits, it’s not the only platform available. Other options—like PayPal, Stripe, and nonprofit-focused platforms like Harness—offer different features, pricing models, and levels of customization.

The right solution depends on your organization’s size, fundraising strategy, and how deeply you want to engage your donors. In fact, many nonprofits use more than one payment processor to meet different needs. You might use Square for event-based, in-person giving, and Harness for online fundraising campaigns and donor engagement.

Here’s a side-by-side look at how some common platforms compare:

Pros and cons of using Square for nonprofits

Square offers a streamlined, accessible donation solution—especially for nonprofits focused on in-person or event-driven fundraising. Still, it’s important to understand both the advantages and the limitations depending on your organization’s goals.

Pros

• Quick and easy to set up, with minimal technical barriers
• Enables in-person and mobile giving with card readers and smartphones
• Transparent, flat-rate pricing model (no monthly subscription fees)
• Trusted brand that donors may already recognize
• Fast deposit times (1–2 business days; optional instant transfer)

Cons

• No discounted transaction fees for registered nonprofits
• Basic donor data capture, with limited engagement or CRM functionality
• Few customization options for fundraising campaigns
• Not ideal for organizations focused on long-term donor cultivation or multi-channel engagement

Optimizing your fundraising strategy with Square and Harness

Accepting donations is just the beginning. For long-term success, it’s critical to keep supporters engaged and turn one-time gifts into lasting relationships.

That’s where Square and Harness can work together. Square handles the front-end payment processing, while Harness provides the tools that help you build donor loyalty, automate outreach, and grow recurring revenue.

Together, they give you the flexibility to:

• Accept donations online, in person, or via mobile
• Encourage repeat giving through SmartAsk™ and personalized follow-up
• Launch branded campaigns with clear messaging and built-in tracking
• Use donor insights to tailor communication and deepen engagement

By combining Square’s accessibility with Harness’s automation and donor management capabilities, you create a complete fundraising ecosystem that supports both collection and connection—no matter where your donors are in their journey.

Best practices for maximizing donations with Square

Square is a great tool for collecting donations—but how you use it can make a big difference in results. Here are a few ways nonprofits can maximize their impact:

• Offer recurring giving options – Even if Square doesn’t prompt for recurring donations automatically, you can set it up on your checkout page. Recurring donors help provide predictable revenue and reduce seasonal fundraising pressure.
• Use multiple giving channels – Square supports online donations, mobile payments, and in-person card swipes. Promoting multiple ways to give helps meet donors where they are and can increase total contributions.
• Simplify the experience – Keep donation forms clean and mobile-friendly. Add QR codes at events or in printed materials to link directly to your Square donation page.
• Follow up consistently – Use Square’s automated receipts as a starting point, but don’t stop there. Pair Square with tools like Harness to send personalized thank-yous, impact updates, and future appeals.

Leveraging donor data for improved engagement

Square tracks basic transaction details, which can help with reporting and acknowledging gifts—but it doesn’t provide deeper insights into donor behavior or giving patterns.

That’s where Harness comes in. By integrating with Stripe and offering a built-in donor CRM, Harness helps you:

• Segment donors based on giving frequency, amount, or recency
• Automate personalized follow-up based on donation activity
• Create targeted campaigns to re-engage lapsed supporters
• Send two-way text messages for real-time connection and feedback

Harness gives you the tools to understand what motivates your supporters, so you can meet them with the right message at the right time—and ultimately, raise more.

Integrating Square with other nonprofit tools

While Square can handle payment collection on its own, many nonprofits use it alongside other platforms to manage fundraising, donor relationships, and operations more effectively.

Harness integrates with Stripe, a robust payment processor similar to Square, and provides a suite of fundraising tools tailored specifically for nonprofits.

By combining tools like Square and Harness, your organization can:

• Accept donations seamlessly, whether online, at events, or through mobile
• Automate donor engagement, including thank-you messages and follow-up communications
• Build campaigns that reflect your brand and mission
• Track performance across events, campaigns, and donor segments—all in one place

Square may be your go-to for fast, in-person donations, while Harness supports a more personalized, long-term approach to donor engagement and fundraising.

Final thoughts on Square for nonprofits

Square offers nonprofits a reliable and user-friendly way to accept donations—especially in person, on the go, or at live events. Its flat-rate pricing and fast setup make it an ideal entry point for many organizations.

But as your fundraising strategy matures, you may find that Square’s features only cover part of the picture.

That’s where tools like Harness can help. While Square focuses on transactions, Harness helps you focus on relationships—turning one-time donors into long-term supporters through personalized communication, automation, and campaign-building tools.

The best approach isn’t choosing between Square and Harness—it’s finding the right combination of tools to match your mission. Whether you’re running a small campaign or planning for long-term growth, the goal is the same: make giving easy, engaging, and impactful.

Frequently asked questions

How long does it take for Square to process donations?

Square typically transfers funds to your linked bank account within 1–2 business days. If faster access is needed, you can opt for instant transfers for an additional 1.5% fee.

Does Square offer nonprofit discounts on transaction fees?

No, Square does not currently offer discounted processing rates for 501(c)(3) organizations. Fees remain the same regardless of nonprofit status.

Can I use both Square and Harness together?

Yes. Many nonprofits use Square for in-person donations and Harness for campaign-based fundraising, donor engagement, and recurring giving. The two can complement each other, depending on your needs.

How secure is donor payment data through Square?

Square is PCI-compliant and uses encryption and fraud prevention tools to protect donor payment information. However, for storing and managing donor relationships, additional tools like Harness provide more advanced CRM functionality.

Does Square support recurring donations?

Yes. You can enable recurring donations through Square’s online checkout features. If you’re looking for more advanced tools to encourage recurring giving, Harness offers SmartAsk™ technology and automated donor journeys designed to increase monthly giving.

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