Square for Nonprofits: Fees, Setup, & Alternatives

If your nonprofit has ever run a donation table at a fundraiser or street fair, chances are someone suggested using Square. It's everywhere: coffee shops, food trucks, farmers markets. That familiarity makes it an easy first choice when you need to accept card payments at an event.

And it works, but nonprofits quickly run into a gap since Square is a point-of-sale tool built for retail, not fundraising. It doesn't include campaign pages, donor records, or automatic tax-compliant receipts, so nonprofits using Square will need additional tools.

This guide breaks down exactly what Square costs for nonprofits, how to set it up, where it falls short, and what a purpose-built fundraising platform looks like by comparison, so you can make the right call for your team.

Key takeaways

• 💳 POS, not fundraising software Square is built for retail, not donor management or fundraising campaigns.
• 🏷️ No nonprofit discount Square charges every organization the same rates (2.6% + 15¢ in person and 3.3% + 30¢ online) with no reduced pricing for 501(c)(3)s.
• 📱 Works for basic in-person gifts With a free reader and the Square POS app, your team can accept swipe payments at events.
• 🧩 You'll need additional tools Donation pages, CRM, and tax-compliant receipting require additional software.
• 🧈 Givebutter replaces the full stack Get all the benefits of Square, plus so much more, including Tap to Pay, a free mobile app, unlimited donation forms, and a nonprofit CRM.

What is Square & can nonprofits use it?

Square is a point-of-sale (POS) software best known for its compact white card reader, which helps businesses accept in-person payments like retail purchases and event donations.

Though not designed specifically for nonprofits, any tax-exempt charitable organization can sign up for a standard Square account using its EIN.

Square donation fees for nonprofits

Unlike many payment processors, Square is transparent about its payment processing fees. Here's an overview of Square's fees for nonprofits.

In-person processing fees 🏬

Many nonprofits use Square to process in-person donations at fundraising events, but that processing comes with a cost.

Here's a quick breakdown:

For example, a $100 donation costs $2.75 in Square fees. However, that's before you factor in the separate donation page, CRM, and receipting tools you'll still need to run a real fundraiser.

Online & keyed-in fees 💻

For donations accepted online, the fees are even steeper. For nonprofits that rely on recurring donations, like monthly online donations, that additional cost can be significant.

Note: Pricing is as of May 2026; rates may vary by product and are subject to change.

Does Square offer a nonprofit discount? 🏷️

No, there is no Square nonprofit discount. However, organizations that process $250K+/year in card volume can request a custom rate.

While many organizations wonder, "Is Square free for nonprofits?" and have asked about a discount in their community forum, the team at Square notes that they don't currently offer discounted processing rates specifically for nonprofits.

How does Givebutter compare on fees? 💛

Givebutter's nonprofit payment processing works differently.

Nonprofits that enable optional donor tips pay $0 in platform fees and $0 in processing fees for online donations. If you'd rather turn tips off, a flat 3% platform fee applies plus standard 2.9% + 30¢ processing.

For in-person donations collected via the mobile app, a 1% platform fee and standard 2.9% + 30¢ processing fee apply.

How to set up Square for your nonprofit

Setting up a Square account for your nonprofit only takes a few minutes, which is one of its strongest appeals. But, customizing the POS software to fit nonprofit needs has to be done manually.

Here's how to make it work for your organization.

1. Create a Square account with your EIN 📝

Head to squareup.com, click "Sign up" and select "Nonprofit" as your business type. When prompted, enter your EIN and add your bank information.

Square recommends creating the account using the name and Social Security number of an individual who is a stable figure in the organization to avoid setting up new accounts with staff turnover.

2. Get a card reader 💳

Next, decide which hardware your nonprofit will need for your next event.

While Square offers several hardware options, most charities with limited budgets choose between these devices:

• Square Reader for magstripe: The first reader is free and allows for swiping only (no tap or chip payments).
• Square Reader for contactless and chip: At $59, this reader handles tap and chip payments.
• Square Terminal: $299 (or $27/mo over 12 months) for an all-in-one device with a built-in receipt printer.
• Square app: Tap to Pay is free.

More to explore

Compare the 7 best card readers for nonprofit organizations →

3. Build a "donation" item in Square 🧾

Because Square doesn't have any native donation flows, nonprofits can use one of two workarounds to accept gifts through their account:

• Create a $0 "Donation" item with an open-ended price field: This enables donors to enter a custom amount at checkout.
• Use payment links: Once the Square payment link is created, nonprofits can add a donation goal, deadline, or campaign timeframe.

✍️ Keep in mind: Unlike using a dedicated fundraising platform, nonprofits can only collect the names and email addresses of donors. There's no option to track campaigns or individual giving.

4. Handle tax receipts manually 📧

Because Square is primarily built for retail businesses, and not nonprofits, its automatic receipts confirm the transaction, but they don't include the nonprofit-specific language the IRS requires for charitable donation acknowledgments, like your EIN or a goods-and-services statement.

To create tax-compliant receipts, charities need to manually export their Square transaction report as a CSV, import that data into a CRM, and then build or use a tax receipt email template that meets IRS requirements.

Pros & cons of using Square POS for nonprofits

For nonprofits that sell merchandise or services as part of their mission, such as a thrift store or bookshop, Square can be a solid tool for processing in-person transactions. But Square's tools are designed primarily for payments, not full fundraising operations.

Here's an honest look at the pros and cons of Square for nonprofits.

Benefits of Square for nonprofits

✅ Brand recognition Square is a well-known POS system, so your staff and volunteers are likely already familiar with it. That means you can spend less time on training and more on your mission.

✅ Free to start For budget-conscious nonprofits, no monthly fee and one free card reader help keep in-person donation costs low.

✅ Reliable hardware The Square system is reliable, compatible with most iOS/Android devices, and known for a seamless customer experience.

✅ Offline mode Square continues processing payments without WiFi, which is particularly useful for outdoor events or venues with limited internet access.

Square drawbacks for nonprofits

❌ No discounted Square nonprofit rates Unlike other POS or fundraising software options, Square doesn't offer a discount, charging charities the same 2.6% + 15¢ rate as any for-profit merchant.

❌ Limited donor management Square captures basic customer and payment data (names, email addresses, transaction history), but it doesn't include tools for donor relationships or long-term stewardship.

❌ No tax-compliant receipts Nonprofits are required to send IRS-compliant donation receipts. With Square, all of that has to be done manually.

❌ No real donation pages Nonprofits rely on campaign and donation pages with branding, a fundraising goal, and the option to become a recurring donor. But Square doesn't offer that.

❌ Manual reconciliation With Square, everything after the payment, like reconciling transactions, importing donor data, and matching gifts to campaigns, has to be done manually.

More to explore

See how Square compares to Stripe for nonprofits

Square vs. Givebutter: A head-to-head comparison

While nonprofits often choose Square for its brand recognition and easy setup, many organizations eventually need more fundraising-specific tools.

Here's how Givebutter stacks up to Square as both a nonprofit payment processor and all-in-one fundraising platform, and why Givebutter was named #1 Nonprofit Software of 2026 by G2.

✍️ Keep in mind: Givebutter's $99 Stripe M2 card reader is only needed for chip or swipe payments; Tap to Pay is free via the Givebutter mobile app, so you only need a phone to accept donations right on the spot.

Square is a great POS. Givebutter is a great fundraising and donor management platform. The difference matters when every dollar counts.

Dive deeper

Learn how PayPal works for nonprofits (& how it compares to Square)

Power in-person giving with Givebutter

Using Square to process in-person donations can feel like a quick and simple solution. It's free to begin, recognizable, and helps you accept donations without slowing down your event.

But the power of Square only goes so far. With Givebutter, nonprofits can get everything they love about Square plus all the essential fundraising and event tools they need: a CRM, unlimited fundraising pages, automatic IRS-compliant tax receipts, and a full marketing and engagement suite in one place.

Create your free Givebutter account and accept your first in-person donation today.

FAQs about Square for nonprofits

Can nonprofits use Square?

Yes. Any registered 501(c)(3) organization can sign up for a standard Square account and accept donations by inputting their EIN when registering. However, Square does not offer a separate nonprofit product, so donations are processed as standard payments.

Does Square offer a nonprofit discount?

No. Square charges all users the same rate, but organizations processing $250K+ per year can request a custom rate.

How much does Square cost for nonprofits?

Square for charities costs 2.6% + 15¢ per in-person tap/swipe/chip donation, 3.3% + 30¢ for online donations, 3.5% + 15¢ for manually keyed donations. The first card reader is free, while the Square Terminal costs $299.

Can Square issue tax-compliant donation receipts?

Square sends payment confirmations but does not automatically generate tax receipts with the information nonprofits need for IRS compliance. To send IRS-compliant receipts, nonprofits must export Square transactions, import them into a CRM, create a template, and send receipts manually.

Is the Square Terminal worth it for a nonprofit?

Nonprofits on Reddit comment that the terminal ($299) is not usually a necessary purchase for nonprofits that only host a few events each year, and that the free mobile card reader and donation app are sufficient for most organizations.

Alternatively, nonprofits can use a free Tap to Pay option, like Givebutter's mobile app.

Can I use Square & Givebutter together?

Yes. Nonprofits can use both together using Zapier. For many nonprofits, Givebutter alone covers everything they need for donations, plus CRM tools, receipts, and fundraising campaigns.