Venmo for Churches? Uncover the Unexpected Truth!

Churches want to encourage donations from their members and make this process fast and easy, so using Venmo for churches is a logical idea. Millions of individuals and businesses already know how simple it is to set up Venmo accounts and use them to make payments quickly and securely, without worrying about carrying cash or mailing checks.

So, what’s the bottom line on using Venmo for church donations? Keep reading to find out. Get some background information on Venmo plus details on the pros, cons and details of how Venmo might meet your needs.

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Venmo for Churches

What Is Venmo?

Venmo is a mobile payment service established in 2009, which has been owned by PayPal since 2013. Originally designed as a payment network for individuals with some engaging social media features, Venmo helped friends and family members in the US transfer money to and from each other quickly and easily and see how members were interacting online. More recently, the Venmo app has evolved to allow members to pay businesses for products and services using QR codes and touchless transactions.

Venmo is one option among several peer-to-peer (P2P) platforms, — such as Zelle, Apple Pay and Cash App — for sending and receiving payments. Because it is owned by PayPal, Venmo enjoys a wide reach and growing popularity among existing and potential users.

Can Churches Use Venmo?

Yes! In 2022, Business of Apps found that almost 80 million individuals and 2 million merchants in the US were using Venmo to make and receive payments. It is a common payment app that church members are likely already using or at least familiar with. So, it makes sense for churches to consider Venmo as a potential payment platform for collecting donations and tithes. However, it is important to get all the facts before proceeding with Venmo. Keep reading to determine if it makes sense for your church.

How to Set Up Venmo for Churches

As with its competitors, new users will find it easy to set up Venmo accounts and start using them right away. All that’s required is a valid email address, a mobile phone number, a unique username and a linked bank, debit card or credit card account. All users must establish personal accounts, but businesses may also opt to open Venmo business accounts to accept payments.

Like other users, churches can establish Venmo accounts with an authorized email address, phone number, username and linked account. Churches may also set up charity profiles that indicate they are nonprofit organizations. A Venmo charity profile is separate from a personal or business profile. To set up a charity profile, your church must first establish a PayPal Business account with a new phone number and email address. You must also provide business registration and tax reporting information and details about the charity.

To donate to a church using a Venmo personal or business profile, users simply select the correct church using its email, username or phone number and make payments (donations) as usual. Churches with charity profiles can include a Venmo link or QR code with fundraising campaign communications and social media posts for donors to use.

What Are Venmo’s Fees for Churches?

Venmo church donations aren’t free. Venmo charges churches with charity profiles a fee for processing donations. The standard fee is 1.9% + $0.10 for each donation.

In addition, Venmo charges fees that apply to users depending on their profile:

Personal profiles:

Standard fee of 3.00% for credit card payments
No fees for Venmo balance, debit card or bank payments
1.75% (minimum $0.25; maximum $25) for instant transfers (approximately 30 minutes)
No fees for standard transfers (1–3 business days)
Transaction limits based on account type and tenure

Business profiles:

1.9% + $0.10 of the payment standard seller transaction fee (payments sent to a business profile from another Venmo account)
2.29% + $0.10 of the payment for contactless payments

Should Churches Use Venmo?

There are several factors to consider when using Venmo for churches. To make a good decision, be sure you understand the details of how Venmo would work for your church. You want to make donating easy and convenient for church members, but your needs might go beyond the basics of a payment app. Can churches use Venmo? Of course, but consider these pros and cons as you make your decision.

The Pros

Familiarity: As you learned earlier, Venmo is popular in the US and used widely among individuals and businesses, so the chances are good your church members will be familiar with it. Venmo usage is strong and growing and it might be a great way to encourage church members to donate. According to HelpLama, Venmo users average about five transactions a month with an average transaction of around $70. That’s a lot of potential!
Simple Setup for Donors: Setting up a Venmo account is quick and easy, for church members and your church. Venmo can help you make donations fast and painless for most church members.
Security: Venmo uses encryption to protect users’ account information and monitors accounts for potentially fraudulent activity. They are proactive about encouraging users to protect their accounts and explain clearly when and how Venmo might contact users if necessary.

The Cons

Accounts for Pastors: Like other users, pastors can set up personal accounts to enable them to use Venmo. Although accepting church donations through these accounts may feel comfortable and easy, these donations might look like personal income to the IRS, and this income is not tax-deductible. Pastors and churches must be careful to establish accounts where the tax status of donations is clear and appropriate.
Not Built Specifically for Churches: Although it’s popular among millions of individuals and businesses, Venmo for churches is missing essential features that help churches ensure consistent income, encourage giving and generosity, and engage church members in all aspects of church life. For example:
- A free church giving and engagement app that can organize private or group chats, manage a directory, communicate and streamline church events and much more. Venmo doesn’t offer the ability to sync with essential live streaming programs. Imagine live streaming your worship services and enabling viewers to donate and chat with moderators during the services!
- Venmo doesn’t include built-in event ticketing functions for church fundraisers and events.
- And finally, Venmo doesn’t integrate with church management software many ministries use to simplify management of their church operations. Without this integration, church staff must manually record contributions in their systems.
Limited Customer Support for Churches: While it offers support 14 hours a day, seven days a week, Venmo doesn’t provide resources or special onboarding for churches as you should expect with a dedicated church giving tool.
No Contribution Statements or Other Key Reports: Manually generating important tax reports for donors and your church is time-consuming and can be expensive if you elect to pay for another service to do it.
No Recurring Giving Option: Many members don’t attend services weekly, and without recurring or automatic giving, their wallets and donations usually stay at home with them, causing churches to lose out on donations. Recurring giving is especially important to churches and church members because donations arrive predictably and regularly without either side having to remember to initiate or ask for these payments.

9 Compelling Reasons to Harness Church-Specific Giving Platforms

You wouldn’t use scissors to mow your lawn, right? So why go for peer-to-peer platforms like Venmo for churches when you have specific and unique needs? This is where dedicated church giving platforms make a real difference.

Dive into a world designed with your church in mind. A realm that builds connections, streamlines giving and accentuates the authentic impact of your donations — all while fostering engagement.

Here are 9 unbeatable reasons why a dedicated church giving and engagement tool trumps a peer-to-peer giving platform.

1. Turn Every Donation into a Powerful Tale with Cause-Based Giving

Ready for your church donations to tell a compelling tale? With a platform dedicated to church giving, like Vanco’s donation software, they're not just transactions anymore; they're heart-touching stories, brought to life with arresting visuals. This revolutionary approach ignites a surge of generosity and involvement within your church community.

2. Expert Support Tailored for You: Enjoy 24/7 Assistance with Zero Fees!

Let go of generic support and embrace dedicated providers like Vanco, which comprehends your church's distinct needs.

Vanco eliminates tech support fees and replaces them with prompt responses, 24/7 emergency phone assistance and quick issue resolution. We also streamline your journey with a church-specific onboarding process and an array of free templates and tools for nurturing your church’s growth.

3. Boost Your Ministry: Opt for Flawlessly Integrated Giving Solutions!

Let your giving solution and church management systems work hand in hand. A dedicated church giving provider isn’t just a tool – it’s a seamless extension of your church’s tech. Cut down on time-consuming administrative tasks and redirect your efforts toward your ministry. With solutions like Vanco integrating with over 60 church management systems, reconciling and reporting are a piece of cake.

4. Remove Barriers to Generosity: Offer Your Church Multiple Ways to Give

Don’t confine the ways your members can donate. Opt for a dedicated church provider and endow your congregation with the luxury of diverse donation channels. Vanco’s system encompasses mobile readers for in-church card payments, text giving, online donation pages and a no-cost church app — everything you need at your disposal.

5. Beyond Giving: Get Church Members Involved

A great church-specific giving platform goes beyond just processing transactions, like Venmo for churches. Use the app to engage your church community with an online member directory, private and group chats with pastors and among members and publicize and manage church events. If your app doesn’t do all this, consider new possibilities!

6. Unite Physical and Virtual Worship with Effortless Giving

Embrace the evolving dynamics of worship. With the rise of hybrid worship, your church needs a solution that allows for seamless online giving during live streams. Dedicated church tools, such as Vanco’s live stream tool, ensure that even your virtual congregation can partake in offering time just like they would in person.

7. Cut Processing Time: Speed Up Deposits

Many churches struggle with finances at certain times during the year, so you want to be sure you can collect donations regularly and quickly when members make them. For example, ACH payments often reach your church account the same day, debit donations normally arrive within 1 business day and credit cards usually take 2 to 3 business days (American Express takes 4 days). Receiving donations from members and visitors quickly is vital. Be sure you understand the payment processing time frames involved for each online giving platform you consider.

8. Fortify Your Trust: Achieve Absolute Payment Card Industry (PCI) Compliance for Your Church

The bedrock of a thriving church is trust. Your chosen provider should recognize that. That's why it's imperative that your provider conforms to Level 1 PCI, 3.2 certification. Set and upheld by leading credit card brands through the PCI Security Standards Council, including American Express, Discover, JCB, Mastercard and Visa, these standards ensure every transaction is secure.

With a PCI-compliant provider, your church can rest easy knowing your members’ data is secure, allowing you to concentrate on your core missions.

9. Elevate Church Management: Tailored Reports and Donation Tracking for Your Needs

Even the biggest churches grapple with the challenge of limited and burdened staff. This is why your dedicated giving tools need to automate key reports, like giving statements and receipts, to save your staff precious time. Fostering a generous and happy congregation means being good stewards. A dedicated church giving provider makes this task a breeze.

Why Have 25,000 Churches Chosen Vanco for Online Giving?

Before you make a decision, find out what other churches think of Vanco and listen to their reviews and experiences. Find out why a system built for churches is the best solution for your church.