Square has become a popular payment processor for nonprofits and charities thanks to its intuitive tools, fast setup, and versatility at fundraising events. But when it comes to processing fees, the question often arises: Does Square offer discounted rates for nonprofits?

Understanding how these fees apply is essential for nonprofit organizations trying to maximize donations and minimize costs. Whether you're collecting one-time contributions, setting up recurring donations, or accepting funds at an event, fees will influence how much of each dollar actually supports your mission.

1. Square’s Standard Fee Structure for Nonprofits

Square currently applies the same standard fees to nonprofits as it does to all businesses, regardless of 501(c)(3) status or charitable registration. These rates are:

• In-person card payments: 2.6% + 10¢ per transaction

• Online donations: 2.9% + 30¢ per transaction

• Manually entered donations: 3.5% + 15¢ per transaction

Unlike some payment processors, Square does not offer waived or reduced fees specifically for nonprofits. That means whether you're a small local charity or a national nonprofit, the same transaction costs apply.

For organizations relying heavily on digital donations or frequent in-person events, these fees can significantly add up over time—especially if donation volumes are high or the average donation amount is small.

2. Custom Rates for High-Volume Nonprofits

There is a potential exception for larger organizations. Nonprofits processing more than $250,000 annually through Square may qualify for custom pricing. However, these are not preset nonprofit discounts. Instead, rates are negotiated individually based on transaction volume, business model, and other factors.

If your nonprofit operates at scale or runs recurring campaigns that drive significant transaction volume, it may be worth reaching out to Square directly to discuss possible custom rates.

Still, this option is not guaranteed, and smaller nonprofits likely won’t meet the threshold to qualify for such negotiations.

3. Comparison with Other Payment Processors

Square is not the only processor serving the nonprofit space. Some alternatives provide explicitly discounted nonprofit rates. For example:

• PayPal for Nonprofits offers a reduced rate of 1.99% + 49¢ for qualified 501(c)(3) organizations.

• Helcim and others offer interchange-plus pricing with potential savings depending on monthly volume.

Compared to these providers, Square’s fees can be slightly higher—especially for online or manually entered donations. However, not all platforms offer the same level of ease, integration, or mobile tools as Square, so a cost-benefit analysis is necessary.

4. Features Relevant to Nonprofits

Despite its standard fee structure, Square provides a suite of features particularly useful for charitable organizations:

• Donation buttons that can be embedded on nonprofit websites.

• Custom checkout links for email campaigns or social media fundraising.

• Recurring donation support for long-term donor engagement.

• Mobile card readers and point-of-sale (POS) apps that are ideal for on-site event donations or ticket sales.

These tools allow nonprofits to accept donations virtually anywhere, and Square’s no monthly fees on basic accounts make it accessible to smaller nonprofits or community-driven efforts.

5. Pros and Cons of Using Square for Nonprofits

Pros:

Square offers transparent pricing, meaning nonprofits won’t be caught off guard by hidden or variable charges. The easy-to-use platform and fast setup process make it an appealing choice for organizations looking to start accepting donations quickly. The flexibility of using Square at events, in-person drives, and online makes it especially convenient for mobile or hybrid fundraisers.

Cons:

The main downside is that Square doesn’t offer nonprofit-specific discounts, which can make it less cost-effective over time. Processing fees can add up, particularly for high-volume campaigns or when accepting many small donations. Additionally, Square lacks specialized nonprofit support that some alternative platforms provide, such as donor management tools or integrations with CRM systems tailored to fundraising.

6. Tips for Nonprofits to Manage Square Fees

If your organization decides to use Square, here are a few ways to keep fees in check:

• Apply for custom pricing if your donation volume exceeds $250,000 annually.

• Encourage donors to use lower-fee methods such as in-person card payments instead of manual entries or online donations when feasible.

• Compare processors annually to ensure you're using the most cost-effective solution for your current size and donation methods.

• Bundle fundraising items or services into fewer, larger transactions to reduce the flat fee component.

Conclusion: Does Square Offer Lower Fees for Nonprofits?

The short answer is no—Square does not automatically lower its fees for nonprofits. While larger organizations may negotiate custom rates, the average nonprofit pays the same fees as any small business using the platform.

Still, Square offers great value in usability, flexibility, and essential donation tools—especially for small or mid-sized nonprofits without dedicated tech staff. For some organizations, the trade-off in convenience and donor experience may outweigh the lack of fee discounts. For others, especially those focused on reducing administrative costs, exploring alternative nonprofit-friendly processors could lead to significant savings.