Venmo for Churches: Pro’s and Con’s

In the dynamic landscape of mobile payment services, Venmo has emerged as a game-changer. Venmo, along with other payment apps such as PayPal, Cash App, and Zelle, offers a suite of functionalities that have made it easy for consumers to quickly pay a vendor, split payments, or quickly transfer funds.

But is Venmo right for churches?

In the following article, we’ll take a look at why Venmo may be tempting for churches to use, with both benefits and drawbacks.

4 Advantages of Using Venmo & Similar Payment Apps for Churches

Venmo’s biggest selling point is its ability to help people split payments. 

Splitting payment–whether that’s sharing the bill at dinner, paying a friend back for movie tickets, or going in on a large purchase–has been a pain point for consumers for decades. Venmo (and other giving options, like Zelle) has effectively solved this challenge by making it seamless and instant to transfer even a small amount of cash to another user.

However, in recent years, Venmo users have expanded use cases to pay for goods and services. The ability to simply tap on an app, spell out an amount, and hit “send” may have churches wondering, Should we use Venmo to receive donations?

Let’s look at some potential advantages of using Venmo and similar payment platforms for churches.

1. Streamlined Donations Through Mobile Apps

Venmo users can make contributions directly from their smartphones using the mobile app. This can theoretically simplify the process of church giving, allowing tithes and offerings to be sent through a few clicks. The ability to set up a charity profile or a Venmo charity profile specifically for a church planter or a nonprofit can centralize donations and make the process transparent and straightforward.

2. Diverse Payment Options and Instant Transfers

These platforms support various payment options, including credit card, debit card, Venmo account, bank account, and PayPal business account. Instant transfers ensure that funds reach the nonprofit's account swiftly, which is crucial for urgent fundraising needs or church operations.

3. Engagement via Social Media and QR Codes

The integration of social media and the use of QR codes can help amplify a church's fundraising efforts. Sharing a Venmo QR code during live streaming services or via a church's social media channels can make it incredibly easy for Venmo users to contribute. The social aspect of Venmo, coupled with the use of emojis, can add a fun element to the donation experience.

4. Reduction of Processing Fees

While platforms like Venmo and PayPal do have transaction fees, they are often less than the processing fees associated with traditional credit card payments. This can mean more of the donated funds are used for the church's purpose rather than covering overhead costs.

Note: Personal Account vs. Nonprofit Account

A note: It's important to differentiate between a personal account and a nonprofit account. A Venmo charity profile provides added functionality and legitimacy over a personal account, which can encourage donors and help in keeping a log for accounting purposes.

Considerations When Using Venmo and Other Payment Apps for Church Giving

Churches can use Venmo to receive donations and payment for small goods, but should they? Even though many of your church members use this payment platform, it isn’t designed for churches. This ultimately results in some major drawbacks of using this platform for a church.

Here are some key disadvantages of using Venmo for churches.

1. Lack of Reporting and Data

Venmo offers users a very general view of their transaction history. You can view what you have been given, and what you’ve given; your Venmo account balance; bank account information; and your Venmo contacts. Venmo for charities offers more robust details, with donation history, account statements, and donor contact information.

However, Venmo isn’t designed to deliver insights that can help a non-profit or church grow in giving over time. For example, tools like Tithely will produce detailed reporting that can help you measure your weekly or monthly income against your budget, to make sure you are staying on track.

2. Weekly Rolling Limit for Bank Transfers

Venmo has a weekly rolling limit for bank transfers, meaning that you’re unable to transfer large amounts of cash exactly when you want. For example, there is a $50,000 weekly rolling limit on instant transfers to a bank account or debit card. For most churches, this isn’t a concern, but for very large churches or megachurches, this may result in critical delays.

3. Privacy and Security Concerns

Maintaining donor privacy is essential. Transactions on Venmo are public by default, so it's important to ensure that privacy settings are adjusted accordingly to protect donors' contact information. Security measures must also be in place to safeguard against fraud.

4. Compatibility with Church Management Software

As stated above, Venmo isn’t designed for churches. That means that it won’t integrate well with existing software tools that are critical for communities of faith–like church management software.

A great online giving tool for churches will integrate smoothly with your contact database, so that giving history is synced up with other key information (like volunteer history, church membership status, and family relationships).

Giving in Person vs. Giving Online

While mobile payment services offer a multitude of benefits, they do not replace the experience of in-person giving. Churches should offer multiple giving options to cater to different preferences among their congregation.

Is There a Better Option for Church Giving?

Venmo and similar payment platforms are transforming the way people receive cash and share payments.

However, Venmo and most other mobile payment services aren’t designed for churches to receive tithes and offerings.

Tithely emerges as a specialized alternative tailored to meet the unique needs of church giving and stewardship. Tithely is a free online giving platform with minimal transaction fees, a range of options for giving, robust reporting tools (including end-of-year tax statements), recurring giving options, Cover the Fees, text-to-give, and more. In other words, Tithely is designed for people who want to give regularly to your church!

Tithely even has a payment platform that is specifically designed for paying for goods and services outside of charitable giving. Tithely Pay can be used at church bookstores, coffee shops, and event stands, making it simple and easy for attendees to buy merchandise or their favorite hot drink–and for your church to log that purchase seamlessly.

Plus, Tithely offers a suite of tools that align closely with the operations and values of a church. That includes tools for managing a church contact database, sending communications to church members, managing volunteers, coordinating worship services, setting up a church website and app, and more.

When your payment platform syncs with other tools for running your church community, that produces a better, smoother process for everyone–including administrators and donors.

Finally, Tithely also takes into account the Biblical aspect of giving, providing an experience that resonates with the values and traditions of church giving. Tithely’s support team is made up of church-goers who are passionate about giving...and want to help each and every church succeed in growing generosity as much as possible.

While Venmo and similar platforms can facilitate church donations, Tithely provides a comprehensive, church-focused solution that better accommodates the nuances of church giving. At the end of the day, Tithely is a Jesus-centered, digital solution that’s made for churches like yours!