As more donors shift to online giving, nonprofits face a rapidly growing payment landscape. The total value of online donations is projected to reach $86.91 billion by 2030, underscoring the significant scale of this opportunity.

To capitalize on this growth, organizations must build nonprofit payment systems that prioritize the donor experience. Making the process easier, more secure, and transparent enables nonprofits to maximize donations and foster stronger trust with their supporters. This blog examines four key elements of a donor-focused payment strategy: capturing market opportunities, allowing the donors to cover fees, ensuring PCI compliance, and mastering system integrations.

The $86.91 Billion Nonprofit Payment Opportunity by 2030

The nonprofit sector is entering a period of significant growth in digital giving, with online donation payments projected to reach $86.91 billion by 2030. Several trends in donor behavior and technology fuel this growth. Donors increasingly expect simple online options, and improvements in payment platforms have made digital contributions easier and more appealing. The widespread adoption of smartphones and digital wallets, such as Apple Pay and Google Pay, has made donating on the go a seamless process. Meanwhile, mobile-friendly donation pages ensure that gifts can be captured from anywhere.

Nonprofits are also expanding recurring gift programs, encouraging monthly or annual contributions that build reliable, long-term funding streams.

Fundraising is no longer limited to organizational websites, as nonprofits now leverage social media tools, crowdfunding platforms, text-to-give campaigns, email links, and QR codes to reach supporters across multiple touchpoints. At the same time, the donor experience has become smoother through the use of simplified forms, one-click giving, and saved payment details, all of which reduce friction and encourage larger and more frequent gifts.

Together, these developments indicate a substantial market opportunity. Nonprofits that prioritize user-friendly giving through streamlined payment pages, a range of payment methods including cards and bank transfers, and clear messaging will be well-positioned to capture a greater share of this expanding digital giving market and achieve sustainable growth.

Donors Covering Processing Fees: Implementation Strategy

Handling payment processing costs is a common challenge. However, research shows that about 70% of donors will choose to cover the transaction fees if given the option. Allowing donors to help cover fees can significantly increase the net funds raised. To implement this in a donor-focused way:

• Offer an Optional Fee Coverage Choice: Add a clear checkbox or prompt on the donation form asking if the donor wants to cover processing fees. For example: “I want to help cover the 2.9% processing fee, so 100% of my gift goes to the cause.” Making this opt-in and clearly voluntary respects donor choice.
• Explain Why It Matters: Use simple language to tell donors how covering fees helps. A short note could say, “Covering this small fee means more of your donation directly supports our mission.” This transparency allows donors feel good about opting in
• Be Transparent About Costs: Show the exact fee or percentage being covered. For instance, if a donor enters a $100 gift and checks the box, display something like: “Processing fee 2.9% ($2.90). Total donation with fee: $102.90.” Seeing the breakdown builds trust and avoids surprises.
• Automate the Calculation: Ensure the donation system automatically adds the fee and updates the total in real-time. This reduces confusion and saves staff time on manual calculations.
• Express Appreciation: Thank donors who cover fees in your confirmation messages or annual reports. Recognizing their extra support reinforces that the option is appreciated, not mandatory.

Following these steps enables nonprofits to adopt a donor-centered approach to fees. Donors who cover fees know their extra gift directly boosts the cause, and the organization saves money on processing. The result is higher net revenue without pressuring those who prefer not to participate.

PCI Compliance for Nonprofits: Protecting Donor Data and Avoiding Fines

Security and compliance are critical when handling donor payment information, and adherence to the Payment Card Industry Data Security Standard (PCI DSS) is essential for every organization that processes credit card transactions. For nonprofits, compliance is not optional, as it protects donor trust and prevents costly penalties. The most crucial step is to use secure, PCI-compliant payment gateways and donation platforms, since these services manage encryption and fraud prevention on behalf of the organization.

Data must be encrypted end-to-end, with HTTPS/SSL used on donation pages to protect card numbers and personal information during transmission, and any stored donor data, such as names or addresses, should be encrypted at rest. Nonprofits also need to keep systems updated, applying security patches regularly to websites, servers, and donation software, while using automated scans to detect vulnerabilities. Sensitive data storage should be minimized, with organizations avoiding the retention of full credit card numbers or CVV codes and saving only what is necessary for records, such as transaction IDs or the last four digits of a card.

Regular security audits are another key requirement, whether through quarterly vulnerability scans, penetration testing, or self-assessment questionnaires, all of which help uncover compliance gaps. Staff training is equally important, ensuring that everyone who handles donor information understands basic security protocols, such as using strong passwords, avoiding shared credentials, and recognizing phishing attempts.

Non-compliance comes with real consequences: payment networks can impose monthly fines in the thousands of dollars. At the same time, a serious data breach could result in penalties reaching hundreds of thousands, along with legal expenses and the erosion of donor confidence. Prioritizing PCI compliance helps nonprofits protect both their supporters and their long-term sustainability. Strong safeguards not only prevent financial loss but also build the trust that encourages donors to give with confidence.

Integration Mastery: CRM, Accounting, and Donor Management Systems

True payment processing excellence goes beyond the donation page — it ties directly into a nonprofit’s other systems. Integrating payment processing with CRMs, accounting software, and donor management tools creates a seamless experience for both staff and donors. Consider these best practices:

• Sync Donations to Donor CRM: Automatically update your donor database or CRM when a gift is made. The donor’s record should reflect the new gift amount and date without manual data entry. This allows fundraisers to quickly view giving history and personalize communications (for example, sending a customized thank-you message).
• Automate Accounting Entries: Link your payment processor to your accounting or bookkeeping system. Every online donation should generate a corresponding financial entry. Automation minimizes errors and saves significant administrative time during financial reporting and audits.
• Coordinate with Donor Management Tools: If you use specialized fundraising software or membership systems, ensure they receive the new donation data, too. This way, lists for mailings, event invites, or legacy giving programs stay up to date. Unified data ensures no donor is accidentally overlooked.
• Use Integrated Reporting: Leverage dashboards that pull data from both payments and CRM/accounts. Combined reports provide insights into campaign effectiveness, donor retention rates, and revenue per fundraiser. Data-driven analysis helps refine fundraising strategies.
• Trigger Automated Communications: Set up processes that automatically trigger actions based on specific donation events. For example, a large gift could automatically notify the development director, or a renewed monthly gift could prompt a thank-you email. This keeps donors engaged and ensures timely stewardship.
• Maintain Data Consistency: Confirm that systems use the same identifiers (such as donor ID or email) to match records correctly. Clean, standardized data prevents duplicates and mismatches across platforms.

With these integrations, nonprofits streamline operations and maintain a holistic view of each donor. When systems work together, staff spend less time on paperwork and more on cultivating relationships. In the U.S. context, integrated payment data also simplifies compliance with financial reporting rules (such as providing IRS-required donation acknowledgments).

Ultimately, a well-integrated technology stack ensures that every donation moves smoothly from a supporter’s heart to the organization’s bank account and records.

Conclusion: A Donor-First Payment Strategy

Putting donors first in payment processing means combining convenience, transparency, security, and efficient systems to ensure a seamless experience for all parties involved. Addressing each of these areas enables nonprofits to tap into the projected $86.91 billion opportunity through 2030. Donors will appreciate smooth, mobile-friendly giving options and the choice to cover processing fees. They will give more freely when they know their data is secure and their contribution truly goes farther. Meanwhile, strong PCI compliance and integrated back-office systems protect the organization, freeing staff to focus on mission-critical work.

A donor-focused payment strategy is not just about technology — it’s about honoring donors. When nonprofits make giving easy, transparent, and secure, supporters feel valued. This builds trust and loyalty, leading to larger gifts and repeat support. Prioritizing the donor experience in payment processing allows nonprofits to maximize fundraising and strengthen the relationships that fuel their mission.