Is Zelle for Churches a Good Idea? Get an In-Depth Analysis!

Your church members want to quickly and easily donate to causes they care about — so can using Zelle for churches help streamline church donations? Many churches are exploring how to use popular online payment apps to make giving faster, easier and more secure than cash and checks. Zelle is a widely used app that has the potential to do just that.

Does it make sense to use Zelle for church donations? Keep reading and decide for yourself. With such a wide variety of payment apps and features to consider, it pays to take time to find out how Zelle stacks up in this space. This guide provides details on the Zelle app and how to use it, plus some advantages and disadvantages of using it for church donations.

Don't Let Complex eGiving Plans Baffle You

Cut through the confusion with our free, comprehensive comparison of Zelle and Vanco.

Get Your Free Comparison

Zelle for churches

What Is Zelle?

Zelle is a peer-to-peer (P2P) payment app, similar to Venmo and Cash App, but with an important difference. Zelle was launched in 2017 by Early Warning Services, LLC, an organization that is owned by seven of the largest banks in the United States. This group created Zelle to offer a P2P platform that anyone with a U.S. bank account could use, not just members of a limited network like Venmo and Cash App. Currently, Zelle lists over 1,700 participating banks and credit unions.

How does Zelle work?

Users can access Zelle from their current banking apps if their banks offer it. If a user’s bank doesn’t offer Zelle, they can download the Zelle app to their mobile phone.

To make payments, users need the email address or mobile phone number of a contact they know and trust. Payments are taken directly from users’ bank accounts and paid directly to recipients’ bank accounts. If a recipient is not a Zelle user, they receive notification telling them how they can receive the payment in their bank account. Payments are usually processed within minutes.

Unlike Venmo and Cash App, users don’t have Zelle app balances. Money moves directly between bank accounts so users can access money right away. Unlike Venmo and Cash App, because Zelle enables transfers among banks and credit unions, FDIC insurance applies to all transactions. However, credit card purchases and payments are not available.

Fees

Zelle does not charge fees for any transaction; however, users should check with their banks or credit unions to ask if they charge fees for these money transfers.

Can Zelle be used for churches?

Churches can use Zelle to receive donations and tithes from church members. According to NerdWallet, almost 80 percent of Americans use online payment apps, so the chances are good that many church members already use Zelle. However, because Zelle doesn’t offer a credit card payment option, this could impact church donations — 49 percent of all church-giving transactions are made with a credit or debit card.

How to set up Zelle for a church?

Churches set up Zelle accounts just as other users do. A church must have an account with a participating bank or credit union and provide an email address and mobile phone number for an authorized person or ministry for the church. At this time, Zelle offers limited access to business accounts and no dedicated accounts for churches and nonprofits.

Zelle for churches — Is it a good idea?

As you’ve seen, Zelle is a popular online payment app that facilitates direct payments between users’ bank accounts, with no fees or processing delays. There are good reasons to consider using Zelle for churches, but there are also potential risks. Keep reading to learn the pros and cons of using Zelle for church donations.

The Pros

Familiarity: Research from Oberlo shows that in 2023, Zelle has almost 68 million users, and it’s growing. So many people — and likely many of your church members — are familiar with it.
Simple Setup for Donors: Using Zelle for church donations is easy. Donors simply find the church’s Zelle account using its email address and mobile phone number. Transfers move between donors’ bank accounts to the church’s bank account in minutes.
Security: Zelle protects user accounts through authentication and monitoring features.
Cost: Zelle doesn’t charge a fee to send or receive money between banks.

The Cons

Potential tax confusion: Pastors can become Zelle users just like members of their congregations. However, although this may be a quick and convenient way to accept church donations, the tax status of donations coming into these accounts can be unclear. If the IRS determines this is personal income, it’s not tax-deductible.
Not Built Specifically for Churches: Zelle was designed and built to enable transactions between banks. As such, it is missing important features that support church goals and activities, such as:
- The ability to tell the story of your church’s ministries and give members a choice in where their donation is used.
- A free church giving and engagement app that can organize private or group chats, manage a directory and more.
- No essential live streaming capabilities or other features, such as online giving and chat during live streams.
- No built-in church event ticketing functions to support fundraisers and other activities.
- No integration with church management software that ministries use to simplify church operations and avoid manual entry of donations.
Limited Customer Support for Churches: Zelle provides support for all users from 10 a.m. to 10 p.m., seven days a week (except Thanksgiving, Christmas Day and New Year’s Day), but there are no onboarding programs or resources specifically dedicated to Zelle for churches.
Limited reporting: Zelle doesn’t provide robust reporting features for churches. Building reports manually is time-consuming and costly if you engage an outside organization to provide them.
No recurring giving option for all banks: Recurring donations are an important source of year-round income for many churches. They ensure that church members who don’t attend regularly can still make vital donations. Using Zelle for church donations does not include a standard option for recurring donations; this option depends on whether each user’s bank permits programmed Zelle payments.

8 Crucial advantages of church-specific giving platforms

Unleash a new era of giving within your church.

From storytelling around donations to automated reporting, these eight keys unlock a realm of possibilities that personalize support, enhance integration, redefine generosity, enable hybrid worship and ensure easy, flexible giving.

Discover how dedicated giving providers can revolutionize your church's relationship with money, making generosity a joyous part of the faith journey.

1. Unleash the power of storytelling in donations with cause-based giving

What if every cause and every donation told a powerful story? With Vanco's online giving pages, that's exactly what happens. Transactions evolve into emotive tales, enriched with compelling visuals. Watch as this innovative method inspires a wave of generosity and enthusiasm in your church.

2. Access personalized support designed for your church

Break away from generic support. Use dedicated church giving platforms like Vanco to enjoy church- specific onboarding and complimentary growth tools designed to strengthen and expand your congregation.

You can also enjoy 24/7 emergency assistance, prompt solutions and no extra fees with Vanco!

3. Choose seamless, integrated giving solutions for real growth

Wave goodbye to disjointed tools and say hello to seamless integration between your giving solution and church management systems. Your church management system and giving solution aren’t just tools; they’re lifelines to your ministry.

Cut the administrative burden and focus your passion where it belongs. With dedicated providers like Vanco, you get effortless integration with over 60 church management systems. Reconciling and reporting? It’s simple.

4. Embrace generosity through innovation: Multiple ways to give, one unified mission

In a world where everything is tailored, why should your church's giving be any different? A dedicated church provider offers a wide range of choices, all harmonized to the unique rhythm of your congregation. From mobile readers to text giving, online donation pages and a church-specific app, the control is in your hands. Break away from Zelle's rigid mold and redefine what it means to give.

5. Worship without boundaries: Hybrid giving for a hybrid congregation

Your church is more than a location — it's a community, united in faith. Using tools like Zelle for church can divide what should be unified. Choose a dedicated solution like Vanco Live, our live stream tool, meticulously crafted for churches to provide an inclusive online offering experience that engages viewers, all in one place.

With dedicated giving tools like Vanco’s, your virtual congregation is no longer remote, but right there with you.

6. Make giving easy and flexible

Your church's mission is far-reaching; why should your giving methods be any different? While Zelle stops at bank transactions, dedicated giving providers like Vanco empower everyone to contribute their way, be it through ACH, credit cards or debit cards. Don’t limit generosity. Embrace freedom of giving!

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

7. Meet your staff's new best friend: Recurring donations to help power your ministries

Churches using Zelle may struggle to drive consistent giving, but dedicated church giving providers like Vanco are here to catch you. One click, one tap, and your members' gifts become recurring donations — via text, app or online. At a time when every dollar counts, choose a solution that truly meets your church's needs.

8. Don’t just raise money: Make your fundraisers unforgettable

Church fundraisers aren’t just a financial necessity, they help to connect the church community and reflect the church’s spiritual mission in many different ways. Events are a mainstay of church fundraising efforts and dedicated providers like Vanco understand that. From simple, streamlined event promotion to ticketing and seating functions, processing payments and reporting, Vanco’s tools don’t just move money — they help you create an experience that will have a lasting impact on your church community.

What do 25,000+ churches choose for online giving?

Why do more than 25,000 churches trust Vanco for online giving? Listen to their stories, hear their successes and see their goals realized through Vanco's church-focused solutions.