Creating a Venmo Charity Profile: Expand Your Nonprofit's Reach and Fundraising Potential

Venmo is a popular peer-to-peer (P2P) mobile payment service that has grown exponentially in recent years. It's a convenient way to transfer money without exchanging cash or checks. With over 70 million users, Venmo is an attractive option for nonprofits looking to engage younger donors and enhance their fundraising strategies. This guide will cover what Venmo is, what people use it for, what nonprofits can use it for, and how to set it up.

What is Venmo, and Why Do People Use It?

Venmo is a P2P mobile payment service that allows users to request, send, and receive payments by linking their bank account, credit card, or debit card to the app. Users can withdraw payments to their bank account or leave funds in their Venmo account, making it easy to split costs, send birthday money, or divide up rent and utilities. Venmo has gained popularity among young users and is now even used as a verb, as in, "I'll Venmo you for those fries right now."

What Nonprofits Can Use Venmo For

Nonprofits can incorporate Venmo into their fundraising strategies to engage younger donors and increase their donation options. The advantages of using Venmo for fundraising include the following:

1. Ease of use: Venmo users often leave money in their accounts, making it more likely for them to donate without hesitation.

2. Appeal to younger demographics: Many Venmo users are millennials and Gen Zers, providing an excellent opportunity to connect with a new generation of donors.

3. Social sharing capabilities: Venmo's social media-style feed displays transactions and comments, inspiring others to donate to your cause.

4. Mobile giving: Venmo is a free and ubiquitous mobile app, making it easy for donors to give on the go.

So, how do you get started?

How to Set Up Venmo for Nonprofits

Step 1: Confirm Your Charity Status with PayPal

To create a Venmo charity profile, your organization must first confirm its charity status with PayPal, Venmo's parent company. If you don’t have a PayPal account, start by creating a PayPal Business account for your charity. Then, follow the steps to confirm your charity status.

Step 2: Get Started with Venmo

Once your charity status is confirmed with PayPal, head to PayPal's Business Tools page for charity profiles or search for Venmo in your Business Tools. Then, click "Get Started" to begin creating your Venmo charity profile.

Step 3: Sign Up for a Venmo Account

If you're new to Venmo, sign up for an account by entering and verifying your mobile phone number. Next, choose your account's email address and password, and agree to Venmo’s terms and conditions.

Step 4: Create Your Venmo Charity Profile

Venmo will gather your information from PayPal to start creating your charity profile. You'll need to:

• Enter a username, description, category, and keywords to help donors find your charity profile.

• Provide your contact information, social media links, and website links (if applicable).

• Preview your charity profile and tap “Publish” when you're ready.

What Are the Benefits of a Venmo Charity Profile?

Creating a Venmo charity profile comes with several benefits, including:

• A blue checkmark badge to show donors that your charity is verified.

• Increased visibility with enhanced and shareable posts from donors.

• Low transaction fees of 1.9% + $0.10 per donation received.

• Donation history and account statements, complete with donor contact information.

• Same-day access to funds from donations (fees apply).

• Separate wallet for personal payments and transactions.

• Photo gallery to help tell your charity’s story.

• QR code and QR Kits for collecting touch-free donations in person.

Privacy and Data Sharing

When you create a Venmo charity profile and connect your PayPal account, you allow Venmo to collect information about you and your charity. This includes personal information (Full name, Email, Account verification status, and PayPal ID) and charity information (Business Address, Business Category, Business Email, Business Name, Business Owners, Business Registration Information, Business Type, Business Subcategory, and Tax Identifier). For more information, read PayPal’s Privacy Policy and Venmo’s Privacy Policy.

Wrapping Up

Venmo charges fees for transactions made to nonprofit charity profiles. The fees are 1.9% + $0.10 per transaction, which are deducted automatically from each donation. However, Venmo does not give donors the option to cover these transaction fees.

When comparing Venmo to other fundraising platforms, remember that many platforms offer various pricing structures, including processing fees and platform fees. Some platforms may offer lower transaction fees or even allow donors to cover the fees, resulting in more money going directly to your nonprofit.

Venmo can be a valuable addition to your nonprofit's fundraising strategy, especially when used in combination with other payment methods and fundraising platforms. By leveraging Venmo's popularity and convenience, your organization can reach a younger donor base and enhance its fundraising efforts.

Want to learn more? Check out Venmo’s FAQs for their most up-to-date information. Happy fundraising!