Venmo charges nonprofits a standard transaction fee of 1.9% + $0.10 per transaction for payments and gifts received through its platform. Nonprofits can transfer these collected donations to their bank accounts without additional fees, provided they opt for the standard transfer time, which typically takes one to three business days.
Understanding Venmo's Fee Structure for Nonprofits
When a nonprofit organization receives a donation or payment via Venmo, a specific fee is applied to each transaction. This fee covers the processing of the payment.
The fee structure for nonprofits on Venmo is as follows:
| Transaction Type | Fee Structure |
|---|---|
| Payments and Gifts Received | 1.9% of the transaction amount + $0.10 |
It's important to differentiate between the transaction fee and the transfer of funds to a bank account. While a fee is incurred when a donation is received, moving the funds from a nonprofit's Venmo balance to their linked bank account typically does not incur additional fees if the standard transfer option is selected. This standard transfer usually takes 1 to 3 business days for the funds to become available in the bank account.
How These Fees Impact Your Donations
Understanding how the 1.9% + $0.10 fee works can help nonprofits estimate the net amount they receive from donations. The fixed $0.10 portion of the fee means that smaller donations are impacted proportionally more than larger ones.
Examples of Fee Calculation:
- For a $10 donation:
- (1.9% of $10) + $0.10 = $0.19 + $0.10 = $0.29 in fees
- Net received by nonprofit: $10.00 - $0.29 = $9.71
- For a $50 donation:
- (1.9% of $50) + $0.10 = $0.95 + $0.10 = $1.05 in fees
- Net received by nonprofit: $50.00 - $1.05 = $48.95
- For a $100 donation:
- (1.9% of $100) + $0.10 = $1.90 + $0.10 = $2.00 in fees
- Net received by nonprofit: $100.00 - $2.00 = $98.00
Leveraging Venmo for Nonprofit Fundraising Effectively
Despite the associated fees, Venmo can be a powerful tool for nonprofits due to its widespread adoption, especially among younger demographics. Its ease of use makes it convenient for donors to contribute.
To maximize your fundraising efforts while being mindful of fees:
- Promote Venmo as a Convenient Option: Make it clear and easy for donors to find your Venmo handle or QR code on your website, social media, and fundraising materials. For general information on Venmo, you can visit the official Venmo website.
- Communicate Transparently: While not required, some organizations choose to be transparent with donors about processing fees, explaining how a small portion of their donation helps cover administrative costs.
- Encourage Round-Up or Larger Donations: For smaller, frequent donations, the fixed $0.10 fee has a greater relative impact. Encouraging donors to round up their contributions or make slightly larger, less frequent donations can help minimize the percentage of each donation lost to fees.
- Utilize Standard Transfers: Always opt for the standard 1-3 business day transfer to move funds from your Venmo balance to your bank account, as this avoids any additional transfer fees.
By understanding Venmo's fee structure and implementing strategic approaches, nonprofits can effectively integrate Venmo into their fundraising strategies.
