Venmo for Churches: What You Should Know Before Using

If your church doesn't accept online tithing and digital donations, you're missing out on a potential revenue stream. After all, statistics show that adding an online giving option increases donations by as much as 32%.

One possible method for accepting online giving is through Venmo. But is this the best choice for your church? Are there any better alternatives?

In this guide, we'll explore the pros and cons of using Venmo for churches, as well as other options to consider.

What Is Venmo?

You probably already know what Venmo is, but let's make sure we're all on the same page. Venmo is a popular peer-to-peer payment app that allows users to easily send and receive money from friends, family, and even businesses. It's similar to apps like PayPal, Zelle, Cash App, and Apple Pay.

It's owned by PayPal and has become increasingly popular over the years, especially among younger generations.

Can Churches Use Venmo?

Yes, churches can use Venmo to accept donations. With a user base of almost 80 million people, there's a good chance that members of your church are familiar with it.

To use Venmo in your church, there are a few things you need to do.

1. Set up a charity/non-profit profile. This is separate from a business or personal profile and requires your church to first create a PayPal business account.
   
   
2. Provide required info. Because your church is a non-profit, you need to supply tax reporting information and details about your organization.
   
   
3. Comply with Venmo's terms of service. This includes providing accurate and honest information, only using the app for lawful purposes, and complying with all state and federal laws.

Once you've done this, you're ready to start using Venmo in your church.

It should be noted that Venmo DOES charge a transaction fee to non-profits. For each transaction, the processing fee is 1.9% of the transaction plus + 0.10.

However, just because your church can use it doesn't mean that you should use it. Let's explore the pros and cons of using Venmo.

The Pros of Using Venmo for Churches

There are several benefits to using Venmo within your church.

Ease of Use

Venmo is a widely popular peer-to-peer payment app that allows users to quickly and easily send money to one another. This ease of use extends to accepting donations for your church, as well. With Venmo, donors can simply open the app, type in your church's username, and send their donation within seconds.

You also can provide church members with your specific Venmo link or QR code, making it even easier for them to find and donate to your church.

Familiarity

As mentioned earlier, Venmo has a large user base, especially among younger generations. This means that many of your members may already be familiar with the app and feel comfortable using it to donate to your church.

Security

Venmo offers a variety of security measures to protect both the sender and receiver of funds. These include encryption, multi-factor authentication, and purchase protection for eligible transactions. This can provide peace of mind for your church and its donors.

The Cons of Using Venmo for Churches

There are also a number of cons to using Venmo in your church.

Confusion Of Accounts

Pastors are able to set up their own personal accounts to use Venmo, and church members might send donations to these personal accounts by mistake. This can cause confusion and potential issues with tracking donations for tax purposes. 

Transaction Limits

Venmo has a $999 weekly transaction limit for unverified accounts and a $19,999 weekly limit for verified accounts. If your church receives large donations or has a high volume of transactions, this could become an issue and hinder the ease of use for donors.

Lack Of Church Functionality

Venmo is not built for churches and does not include features specifically designed for donation management. This lack of functionality makes it much harder for churches to effectively manage and engage with donors. Churches will need to rely on outside tools or manual processes to track and manage donations received through Venmo.

Limited Customer Support

Although Venmo does offer support 7 days a week, that support is not specifically tailored to churches. This means that if your church has any issues or questions related to using Venmo, they may not be able to get the specialized help they need. There also is no onboarding support that is specifically for churches, meaning your church will need to figure out the best way to use Venmo.

Lack Of Reporting

Venmo does not provide detailed reporting on donations received, making it difficult for churches to accurately track and report on their donors' giving. This can also make it challenging for churches to analyze donor trends and create strategies for future fundraising efforts.

It also lacks the ability to automatically produce tax reports for donors, meaning that these reports will need to be manually generated.

No Recurring Giving Options

Venmo does not currently offer the option for recurring giving, which can be a major drawback for churches. This feature is essential for donation management and allows donors to easily set up regular donations without having to manually donate each time.

Without this option, churches may miss out on consistent donations from donors who prefer to give automatically.

Tithely: A Better Alternative To Venmo For Churches

There is a much better alternative to Venmo for your church: Tithely. Here's why:

Six Ways To Give In A Single Platform

Tithely is much more than a peer-to-peer giving platform. In fact, it offers six different ways for donors to give:

• Online giving through your website
• Text giving
• Free church giving app
• Admin gift entry
• Kiosk giving
• Check scanning

This offers more versatility and convenience for both donors and churches. However a person wants to donate to your church, Tithely has it covered.

Free online giving tools for your church

Tithely provides the best online tools to help you increase generosity, manage your church, and engage your church members.

Sign Up Free

Tailored To Churches And Nonprofits

Tithely was specifically designed for churches and nonprofits, meaning that it understands the unique needs of these organizations. This includes providing specialized support for any questions or issues related to using Tithely.

There are also specific functions designed just for churches, like powerful, easy-to-use, easy-to-create giving forms, and multi-lingual support.

Advanced Reporting Features

Tithely provides detailed giving reports, allowing churches to accurately track and analyze donor giving. This includes the ability to create custom reports and easily generate tax receipts for donors.

You also can track generosity trends like number of givers, average gift size, and percentage of recurring givers. On top of this, Tithely makes full transparency possible, making it easy for you and your staff to see every gift, donation, or payment, as well as detailed deposit reporting for every deposit Tithely makes into your bank account.  

Seamless Integration With Church Management Software

Tithely integrates seamlessly with church management software, such as Breeze, making donor management much easier.

This seamless integration with church management systems allows for the streamlined synchronization of donor data and giving records. By easily matching gifts to individual donors, churches can maintain up-to-date records without manual data entry which can be both time-consuming and prone to errors.

This integration not only simplifies administrative tasks but also enhances the overall accuracy of a church's financial reporting and donor engagement strategies.

Recurring Giving

Unlike Venmo, Tithely offers a variety of giving options for donors, including recurring giving.

Recurring giving allows donors to set up automatic donations on a schedule that works best for them, whether that's weekly, bi-weekly, or monthly. This provides churches with consistent income and makes it easier for donors to give regularly, even if they cannot attend on a particular Sunday.

No Monthly Contract and Low Processing Fees

Tithely does not require a monthly contract, allowing churches to use the platform on a month-to-month basis without any long-term commitments. This is ideal for smaller or new churches that may not have the resources for a long-term contract.

Additionally, Tithely has some of the lowest processing fees in the industry, at 2.9% + $0.30 per transaction for credit and debit card donations. This means more of the donation goes directly to the church, allowing them to better allocate funds towards their mission and ministry.

Cover The Fees

Tithely gives donors the option to cover the transaction processing fee, meaning that your church will receive the full donation amount without any deductions. This feature is especially helpful for small churches that may struggle with covering processing fees on their own.

Customizable Giving Forms

Tithely offers customizable giving forms, allowing churches to tailor the giving experience to their specific needs and branding. Churches can add their logo, custom background image, and even choose which fields they want donors to fill out, making the giving process more user-friendly.

Secure and Trusted Platform

When it comes to handling sensitive financial information, security is of utmost importance. Tithely uses industry-leading encryption and security protocols to ensure that all donor information remains safe and secure. Additionally, Tithely is trusted by over 37,000 churches worldwide.

Should You Use Venmo In Your Church?

Venmo certainly can be used in your church. But is it really the best solution for your church? Probably not. While Venmo is convenient and widely used, it was not designed for the purpose of church giving. This means that there are many potential limitations and risks when using Venmo for church donations.

A better solution is a dedicated online giving platform such as Tithely. Not only does it offer more features and customization options, but it also ensures that all donations are securely processed and tracked for tax purposes. Plus, Tithely is specifically designed for churches and their unique needs.