There are so many online giving options available for churches.  It might be easy to stay with something you’re familiar with, like PayPal or Venmo.  They work great for paying the guy that mows your lawn, so why not use them for church donations?

It’s kind of like cooking steak in a microwave.  Just because you’re familiar with the tool doesn’t make it the best option.  Microwaves were not designed to cook steak and PayPal/Venmo were not designed to process church donations.

Churches should avoid using PayPal or Venmo for donations for several reasons:

1: Limited Customization: PayPal and Venmo provide limited customization for donation forms. Churches often want to have the ability to create specific donation campaigns, integrate with their website seamlessly, or set up recurring donations with various options. Dedicated church donation platforms often offer more flexibility in these areas.

2: Lack of Integration with Church Management Systems: Many church management software solutions (e.g., Planning Center, Breeze, Realm) allow churches to track donations, generate tax receipts, and maintain donor databases. PayPal and Venmo don’t always integrate well with these systems, which can create extra work for church staff. (Creating more opportunities for errors or theft.)

3: Privacy and Security Concerns: With PayPal and Venmo, donors may be required to provide personal information or have their transaction history exposed to other users. Churches may want to offer a more secure and private way for individuals to contribute without sharing their financial history with third parties

4: No Support for Tax Deductible Donations: Churches need to issue tax receipts for donations, and PayPal and Venmo don’t provide the same level of support as specialized donation platforms. Without proper documentation and tracking, it could be harder for churches to handle tax-exempt donations and provide donors with necessary receipts.

5: No Clear Branding: Church-specific donation systems can be branded with the church's logo, colors, and messaging, creating a seamless experience for users. PayPal and Venmo, on the other hand, have their own logos and brand identities, which could detract from the church’s branding efforts.

6: Potential for Confusion: Many people use Venmo for personal transactions, so it may create confusion for church members if they are unsure whether they are donating to the church or to an individual. PayPal can also create similar issues if not set up clearly for nonprofit donations.  It is also easy to “spoof” a church PayPal or Venmo account.  A custom branded giving platform that is integrated with a church website/app would be harder to duplicate.

7: Incompatibility with Church Values: Some churches prefer to avoid for-profit platforms like PayPal and Venmo, feeling that they do not align with their values or mission. These platforms may also support controversial business practices or policies that churches may not want to endorse.  Many online giving platforms only provide to churches and like-minded ministries.

8: Complexity for Elderly or Technologically Challenged Donors: Not all church members, especially elderly or non-tech-savvy individuals, are familiar with PayPal or Venmo. A dedicated church donation platform can often offer simpler and more accessible options, including offline donation methods such as checks or cash.

Instead of PayPal or Venmo, many churches opt for services designed specifically for nonprofits, such as Amplify, Tithe.ly, or Givelify, which offer lower fees, better integration with church management software, and features tailored for charitable giving.

Just like you would only cook a T-bone only on the grill, don’t try to process your giving in a microwave.