Far too many nonprofits underestimate the power of young people. Millennials and Gen Z provide tremendous value to the mission-driven sector, both in their volunteer efforts and their eagerness to donate. In fact, Millennials donate the most out of any age group, with 84% giving regularly. So how do you target these important demographics? 

One way to attract charitable young donors is through a well-designed payment processor. Features like contactless payments and in-app purchases make the donation process simple and convenient, which tech-savvy generations will appreciate. 

To help acquire younger donors, we’ll guide you through the following payment processing essentials:



1. Mobile-Friendly Giving
2. Contactless Payments
3. Integrated Technology
4. Pledge Now, Pay Later
5. Reliable, Secure Service

Of course, we’re not suggesting that your nonprofit only target one demographic. Instead, you should work to drive engagement with younger donors as you maintain your relationship with older ones. And to help you achieve this, the right nonprofit donation processor will expand your donor base and bring meaningful support from young adults as their bank accounts grow. Now let’s get started!

1. Mobile-Friendly Giving

Most Millennial and Gen Z donors think of checkbooks and mailing as outdated. For instance, Double the Donation’s fundraising statistics reveal that only 6% of Millennials are inspired to give via direct mail compared to 18% of Boomers. 

Nonprofits have long recognized this and maximized their fundraising capabilities by shifting operations online. However, there’s another giving trend on the rise and it’s here to stay: mobile giving. 

More people are making purchases and donating from their smartphones. The previous stats show that the number of transactions completed through mobile devices increased by 50% this year. 

As a result, donors nowadays expect the convenience and ease of mobile giving. That’s why it’s important for your online donation pages to be mobile-optimized, making it easier to navigate on-the-go. 

When searching for a payment processing provider, make sure it has mobile e-commerce elements to fit the needs of your young donors. These can include: 

• Responsive Donation Pages: Mobile-friendly pages have a clear layout and are easy to navigate. Make sure your online donation forms automatically optimize for mobile users. This will save your nonprofit time and energy down the road. Plus, your donors will have more positive user experiences!

• Giving App: Consider investing in a customized app filled with important information about your mission and donation forms. Donors will see your nonprofit’s app every time they unlock their phones and you can send notifications to remind them to donate. 

• Text-to-Give: This SMS giving technique allows donors to instantly text donations to your nonprofit. Text-to-give simplifies the donation process, making it extremely popular among younger generations. In addition to being user-friendly, text donations enable nonprofits to easily raise donor engagement and retention. 

• Automatic Fill: Mobile giving is meant to be simple, so avoid complicated forms and lengthy checkout times. There are new features with smartphones that allow users to autofill form fields and scan their credit card information using the camera. In turn, you’ll reduce the risk of error and speed up the donation process. 

Whether through an app or an optimized website, mobile payment processing should fit the needs of your young donors and allow them to make an impact anytime and anywhere. 

2. Contactless Payments 

If you want to boost engagement among your younger demographics, look no further than contactless payments. Like mobile giving, young donors value contactless payment options because their phones are their most valuable engagement tool. 

Young people are more inclined to try a range of digital payment methods until they find a convenient transaction experience. Here are some ways that your nonprofit can appeal to young donors’ preferences: 

• Peer-to-Peer Payments: Peer-to-peer services like Venmo, Paypal, and Google Wallet are extremely popular among young donors who don’t carry around cash and want an efficient way to make payments. They can send funds to your nonprofit in seconds with the quick press of a button. 

• In-Person Contactless Payments: Contactless payments allow donors to make a gift by tapping their contactless card, wearable device, or phone near a card machine. These come in handy when you’re hosting an in-person fundraising event and want to speed up the ticket sale or donation process. 

Rather than carrying around a bulky wallet and waiting in long lines to checkout, many young donors will prefer these contactless payment options. Not only do they streamline the entire donation process, but they also help nonprofits increase donations and further digital fundraising campaigns.

3. Integrated Technology

Chances are your nonprofit is already using a range of digital tools. According to the iATS Payments guide to online donations, it’s important to find a payment processing system that integrates with your existing technology. Both your donors and your team want simplicity, so find a system that works alongside your other tools. 

Look for a payment process that has the ability to integrate with third-party software, such as: 

• Fundraising Software: Choose a processor that aligns with your peer-to-peer, membership, and customer relationship management (CRM) software. In turn, all of your fundraising data will be channeled and organized into one interconnected system. 

• CMS: An application program interface (API) integration between your CMS and payment processor allows your nonprofit to accept donations on your own website. This makes the donation process easier for supporters too, since they won’t have to go through a third-party site to give. 

• Matching gifts: With a matching gift integration, your nonprofit can automatically identify matching gift opportunities through a donor's email address and other information included on donation forms. 

With these robust integrations, you’ll be able to keep your payment processing in sync with your fundraising and donor data. You can then use that organized data to further steward your supporters and personalize donor communications. 

4. Pledge Now, Pay Later

For years, businesses have been drawing in customers with the “Buy Now, Pay Later” shopping experience that makes it easier to purchase items. Many nonprofits have seen the benefits of this for-profit strategy and adopted their own version, called “Pledge Now, Pay Later.” 

The concept is simple: Donors pledge a donation then choose the increment and frequency of installments. For instance, if a donor wants to make a $5,000 gift to your organization, they can spread that out over a 12 month period. Once the $5,000 is paid off, for a monthly increment of $416.67, the pledge stops!

Young donors often approach giving differently, making this the perfect way to grab their attention. Here are some more benefits of the Pledge Now, Pay Later feature: 

• Creates a pathway for recurring donors. Pledge Now, Pay Later is similar to recurring gifts, except there’s an end date. Supporters who know this option is available through your payment processing provider are more likely to return. From there, you can ease them into becoming recurring donors and automate the monthly donations. 

• Attracts hesitant donors. Price-conscious donors might be hesitant to reach into their pockets for a cause. With Pledge Now, Pay later, donors can give in a way that’s comfortable for them. This is useful for younger donors, who might not have the resources to immediately make a large donation. 

• Increased donations. Although it may take some time for your nonprofit to see the final dollar amount, donation installments lead to increased donation size and frequency. Donors are more likely to give higher amounts when they can break it up into smaller installments. For instance, a CTA that says “Pledge, Now Pay Later” will presumably get more conversions than a “Donate now” button with a list of high dollar amounts. 

Young donors are motivated by the seamless and straightforward nature of technology. By adding this latest innovation to your payment processing system, you’ll catch their attention and secure large gifts in the long run. 

5. Reliable, Secure Service

Online donations require people to divulge sensitive financial and personal information. If your donor’s phone number or bank account login were to be compromised, it could tarnish your nonprofit’s reputation.

Most young donors are aware of the scams and fraudulent schemes that exist online and expect transparency in return for their financial support. To remain trustworthy and establish rapport with donors, your nonprofit should invest in a secure payment processor that keeps their information safe. Seek out the following safety features in a payment service:

• Tokenization: The purpose of tokenization is to protect sensitive data. It converts credit or debit card information into a string of randomly generated numbers called a "token." That way, if a hacker breaches your database, it will be unreadable.

• Encryption: Encryption acts as a lockbox. It scrambles donor information and uses a key, or cipher, to keep data safe from prying eyes. Encryption and tokenization combined make data breaches virtually impossible.

• PCI Compliance: As nonprofits collect and use data, there is an increased responsibility to use it legally. Major credit card companies create Payment Card Industry (PCI) rules to guarantee that organizations are protecting cardholders from fraud, data leaks, and theft. 

• Fraud Protection: Fraud involves using stolen payment details to initiate unauthorized transactions. Look for a provider that has risk management measures in place to detect, prevent, and protect against fraud.

Adding a reliable payment processor into your fundraising campaigns proves that you value confidentiality and security. In turn, younger generations will feel comfortable donating to your organization, leading to increased support and retention.

While it may seem cliché, younger generations are the future. Millennials and Gen Z supporters will one day be the main donors and advocates for your nonprofit. That’s why it’s important to attract young donors as soon as possible. By integrating smart technology into your payment processing, young adults will feel more inclined to take action for your cause.

About the Author

Peggah Azarvash

Peggah is a passionate Sales Executive with 10 years’ experience providing payment solution support and guidance to nonprofits.