Understanding Credit Card Processing for Non-Profits

Running or being a part of a non-profit organization is something that you should feel very proud about. It’s also likely something that stresses you out on a regular basis. While the theory of having a non-profit organization is a solid one, actually practicing this theory can be a huge hassle. The key to making sure that your organization thrives is in knowing how to delegate, remembering why you started or joined the organization, and embracing and adapting to technology such as credit card processing for your non-profit.

Why Credit Card Processing for Non-Profits Works

There is one thing that almost all non-profit organizations have in common: the need to get donors. Donors are what keeps the organization running and able to accomplish its end goal, whatever that goal may be. Accepting cash is always a good thing, but you may have begun to realize that most people don’t carry a large amount of cash with them on a regular basis. It used to be that you could accept a check from a donor without having to worry about whether or not it would bounce, but now many non-profit organizations do not accept checks because they feel that the risk is too high.

If you can’t accept checks and you do not know if your donors will have enough cash on them to make a significant donation, what, then, can you do?

Accepting Credit and Debit Cards

While the majority of people may not carry cash readily, they will carry credit or debit cards. A non-profit organization that can accept credit cards is one that is likely to get many more donations. But how can your non-profit organization process credit cards? You have three basic options when it comes to credit card processing for non profits:

Merchant accounts – A merchant account goes through a bank or a credit card company. While it can be easy to set up, there can be a wide variety of different fees associated with the company or bank you choose to use.

Third party processors – If signing up for a merchant account seems like a hassle you can go with a third party processor. In this instance a third party accepts credit card donations through their own merchant account. This is a good option for some, but the donations can take a long time to get into the bank account and your organizations name will not appear on the credit card statement of the donor, which turns some donors off.

Non-profit credit processing programs – Some companies offer a credit card processing program that is designed specifically for non-profit organizations. This may be a viable option but it can be expensive if you don’t do your research.

Credit Card Processing for Non-Profits

People want to donate to non-profit organizations. The average person generally has a large desire to donate to what they feel is a worthy cause. Unfortunately people tend to come up with a number of excuses not to donate. If your organization offers credit card processing for non-profits, that is one less reason a person can draw upon to not donate.

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Matthew Hunt has been helping small businesses get set-up with Canadian Merchant Account Services since 2007 and helped 1000's do so. Join Matthew on Google+.

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