10 Reasons Why Nonprofits Choose Donorbox Over PayPal

10 Reasons Why Nonprofits Choose Donorbox Over PayPal

Many of you may have been wondering what differences there are between the Donorbox and PayPal donation forms.

In fact, while PayPal’s donation function may seem similar to Donorbox in some ways, we want to show you how Donorbox better caters to your non-profit’s needs.

We have put together a video that explains why Donorbox is a better fundraising solution than PayPal.

1. More Robust Recurring Donation

Donations on PayPal can be only one-time and monthly. For various reasons, not everyone can contribute on a monthly basis and these limitations can often result in someone opting to donate to a cause just once.

For example, many church nonprofits run membership programs & their church supporters would want to donate weekly, quarterly, or even annually. But due to PayPal limitations, they can’t do so. This is why Paypal is not a good option for churches. Read more on how PayPal for churches can have some serious disadvantages.

At Donorbox, we understand the need for more flexibility when it comes to recurring donations. That’s why non-profits who opt to use our fundraising platform can accept one-time, weekly, monthly, quarterly, and annual recurring donations.

paypal recurring donations

Recurring donors get their own Donor Login to manage their own donation plan at Donorbox. With the help of our impeccable donor management system, donors can also pause, cancel or resume donations, edit their card information, change a donation amount and even change the charge date of a donation. On the other hand, with PayPal, donors cannot increase donation amounts or pause  & resume recurring plans.

In fact, many nonprofits also prefer donation pages over PayPal donate button. Simply because of all the customizations and branding available with donation pages and donation forms.

Nonprofit fundraising

2. Best of Both Worlds: Pay by Card, ACH, or PayPal

If you already have a PayPal account, we understand that you may want to stick to PayPal for convenience. That’s no problem because Donorbox uses PayPal as one of its payment processors. So, you can link your PayPal account to a Donorbox form and still benefit from our awesome checkout process.

All donor data will be collected upfront on the Donorbox form. Then, donors will be transferred to PayPal to complete the payment.


Our donation forms also accept fast check-out options like Apple Pay, Google Pay, and low-fee ACH bank payments.


With Donorbox, it’s now easier than ever for donors to contribute using their preferred payment method.

3. Ask Custom Questions

Donorbox aims to make the donation process as complete and straightforward as possible.

Our donation forms have a wide variety of settings to customize them to your preference. Gather as much or as little information as you want to. Also, ask custom questions and give donors simple ways to respond. In contrast, PayPal’s donation forms are not customizable.

The following image shows how to add additional custom questions to your Donorbox form:

paypal recurring donations

4. Ask Donors to Cover the Processing Fee

Organizations that use Donorbox can ask their donors to cover the credit card processing fee. This also covers the 2.9% + 30c credit card processing fee from Stripe or Paypal (this fee can be reduced for registered nonprofits), as well as the 1.5% Donorbox platform fee.

paypal recurring donations

Here’s the step-by-step guide on how to ask your donors to cover the processing fee.

5. Suggested Donation Amounts

Donorbox’s checkout process is also very straightforward to save your donors as much time as possible.

In fact, DonorBox (form pictured above) provides suggested donation amounts, guiding your donors along the donation process, while PayPal (form pictured below) requires donors to type in the amount they wish to donate.

6. Ease of Fund Transfer

Here’s another great reason to use Donorbox. When receiving donations through PayPal, the money first goes to your PayPal account and you then have to transfer it to your bank account. This adds extra processing time before the transfer is complete, delaying your access to the money you need.

Stripe is also another payment gateway that Donorbox uses. It deposits your donations directly into your bank account, giving you quick access to your funds.Nonprofit fundraising - 2

7. Customize your Email Receipts

While PayPal only provides a donation platform, Donorbox provides extended support, even after your donations have been made.

For example, both platforms offer automatic donation receipts, but only Donorbox allows you to customize them to be more personalized. You can also add text, images, hyperlinks, and change fonts, colors, and sizes. It’s pretty handy if you’d like your receipt to contain special info like legal terms and conditions.

8. Send Year-end Tax Receipts

Along with the automatic one-time and recurring donation receipts, Donorbox also has a year-end tax receipt feature. Specify your fiscal year, customize your receipt, and send your donor’s annual tax receipts.

9. Integrations

Donorbox offers some useful added integrations to give even more functionality to your fundraising campaign:

  • MailChimp – MailChimp handles all your email marketing needs, from designing newsletters to tracking results.
  • Salesforce – Salesforce is the #1 customer relationship management (CRM) platform, managing sales, marketing and customer support.
  • Zapier – Zapier builds connections between frequently used apps to automate your work so you can be more productive.
  • Company Matching – double your donations with corporate gift matching. We’ve teamed up with Double the Donation to provide you with a seamless integration that allows companies to match the donations of their employees.

Donorbox - donation software

10. Fundraising Thermometer

Donorbox has a host of added features that give you complete control over how your donation form works for you, including a fundraising thermometer to share your progress and encourage more support.

paypal recurring donations

Here’s a short overview in table format explaining the difference between Donorbox vs Paypal [In-Depth Review]:

At Donorbox, nonprofits can accept one-time, weekly, monthly, quarterly, and annual recurring donations.Donations on PayPal are limited to one-time and monthly.
With Donorbox, recurring donors get their own login to manage their donation plan. Donors can easily pause, cancel or resume donations.With PayPal, donors cannot increase donation amounts or pause & resume recurring plans.
You can ask custom questions and give donors a simple way to respond.In contrast, PayPal’s donation forms cannot be customized.
With Donorbox, you can ask donors to cover processing fees.With Paypal, there's no option to cover the processing fees.
Donorbox provides suggested donation amounts, guiding your donors along the donation processPayPal requires donors to type in the amount they wish to donate.
Donorbox uses Stripe to deposit your donations directly into your bank account, giving you quicker access to your funds.When receiving donations through PayPal, the money first goes to your PayPal account and you then have to transfer it to your bank account. This adds extra processing time, often causing delays.
Donorbox allows customized email receipts for every donation.With PayPal, you don't have such option to send donation receipts.
Along with one time and recurring receipts, Donorbox also takes care of the year-end tax receiptsPayPal does not offer the option to send year-end tax Receipts
Donorbox offers a ton of Integration capabilities such as Mailchimp, Salesforce, Double the Donation, etc.If you use PayPal, there's no option for integrations.
With the help of fundraising thermometer, you can share your progress and encourage more support.With PayPal, there is no ability to add fundraising thermometer.

Get Started With Donorbox

Final Thoughts: Donorbox Review

Donorbox is an affordable, easy-to-use, and powerful fundraising platform for nonprofits. Its recurring donation system will provide nonprofits with a predictable source of revenue stream. Donorbox is a one-stop solution for nonprofits. Features such as company donation matching,  text-to-give, crowdfunding, and donor management solution make Donorbox the favorite online donation platform for all nonprofit organizations.

Frequently Asked Questions:

What are some of the alternatives to Paypal for Nonprofits?

There are many alternatives to Paypal for Nonprofits. Some of them are Donorbox, Fundly, Qgiv, Donately.

Is Donorbox safe to use?

Donorbox is 100% safe to use. We do not store any card or bank data. Credit card info is encrypted, tokenized, and safely stored with Stripe. Donorbox is also secured by SSL/TLS and is PCI compliant.

How to set up recurring donations on Donorbox?

To enable recurring donations on Donorbox, go to your Dashboard and head to advanced settings. Under Donation Intervals, check the time intervals you want to add to your donation form. With Donorbox you can add the options for one-time, weekly, monthly, quarterly, and annually recurring donations. Here’s a guide on how to set it up.

Does PayPal allow recurring payments or is there any good alternative?

Paypal only allows recurring payments to one-time and monthly. If you want a better alternative for recurring donations, Donorbox is the right software. With Donorbox you can offer donors to donate one-time, weekly, monthly, quarterly, and annually. Additionally, you can send customized email receipts and year-end tax-receipts to your donors.

What payment methods are accepted by Donorbox?

Donorbox accepts various payment methods- Credit Cards/Debit Cards, Apple Pay, low-fee ACH & SEPA bank transfers, Google Pay, and PayPal.

The Donorbox Form Builder is a powerful web-based application to create beautifully customized forms, complete with your own branding and styling choices.

Donorbox outperforms PayPal by incorporating more useful features. We hope this guide helps you see the benefits of choosing Donorbox over PayPal.

Raviraj heads the sales and marketing team at Donorbox. His growth-hacking abilities have helped Donorbox boost fundraising efforts for thousands of nonprofit organizations.

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