How to set up Cash App for nonprofits and collect donations

Good news, it can. But there are a few things you should know before you start.

This guide is here to walk you through it, step by step. We’ll cover how Cash App works, how to set it up for your nonprofit, and what to watch out for. You’ll also see why tools like Harness might be a better fit if you’re thinking long-term. Cash App is simple and fast, but it's not built for the unique needs of growing nonprofits.

Let’s dive in and see if it’s the right tool for you, and how to make the most of it if you decide to use it.

Looking for something more tailored to nonprofits? Harness helps organizations like yours build smarter, stronger fundraising systems. We’d love to help you grow. Visit goharness.com to learn more.

What is Cash App and how does it work for nonprofits?

Cash App is a mobile payment app that lets people send and receive money using their phone. Think of it like a digital wallet. It’s fast, easy to use, and super popular, especially with younger donors. You just need a phone number, email address, or $Cashtag (Cash App’s version of a username) to send someone money.

For nonprofits, this means you can collect donations without needing a big setup or fancy tools. Donors can send money directly to your account in just a few taps. And if you upgrade to a business account (which we’ll explain later), you can get access to more features like reporting and payment tracking.

But here’s the catch: Cash App wasn’t built just for nonprofits. It doesn’t have things like tax-deductible receipts or donor management tools. It’s great for quick donations, but it’s not a full fundraising system. That’s why many nonprofits use it for smaller campaigns, or alongside more powerful platforms.

Can nonprofits use Cash App to collect donations?

Yes, they can, but it’s not as plug-and-play as you might think. Cash App wasn’t made specifically for nonprofits, but it does allow them to accept donations if they set things up the right way.

To collect donations, your nonprofit will need a Cash for Business account. This type of account lets you receive money from people who don’t know you personally, like new donors. It also unlocks features like payment tracking and gives your account a more professional look.

You’ll also need to connect a bank account to transfer your funds. Once that’s done, you can start receiving donations using your $Cashtag or by sharing your QR code in emails, on social media, or even printed materials.

Keep in mind, Cash App won’t automatically know you’re a nonprofit. You’ll need to manage things like tax receipts and donor follow-up on your own. That’s one of the biggest differences compared to platforms that are built for nonprofit fundraising.

How to set up Cash App for your nonprofit organization

Setting up Cash App for your nonprofit doesn’t take long, but each step matters. Here’s how to do it right from the beginning:

1. Download the Cash App

Get the app on your mobile device from the Apple App Store or Google Play. It’s free.

2. Create your account

Use an official email address tied to your organization. This keeps your account professional and separate from any personal Cash App use.

3. Link your nonprofit’s bank account

You’ll need a checking account to move the funds you collect. Make sure this is the same account where you want donations to go.

4. Switch to a Cash for Business account

This step is important. Tap the profile icon, scroll to “Account Type,” and switch to “Business.” This lets you accept donations from anyone and keeps you compliant with Cash App’s terms.

5. Set up your $Cashtag and profile

Choose a simple, recognizable $Cashtag that reflects your nonprofit’s name. Add a profile picture and short bio to build trust with donors.

6. Use your QR code

Cash App gives you a QR code tied to your account. You can print it on flyers, include it in emails, or share it at events to make donating easy.

7. Start fundraising

Share your $Cashtag or QR code on social media, your website, and anywhere your supporters are.

That’s it, you’re live. But while the setup is quick, it’s still your job to handle donor communication and receipts afterward.

Pros and cons of using Cash App for nonprofit fundraising

Cash App can be a useful tool, but like any tool, it works best when you understand what it does well and where it falls short. Let’s break it down.

Benefits of using Cash App

• Simple to use: Most people already know how to use it, so there’s little to no learning curve for donors.
• Quick setup: You can get started in minutes, no contracts, no tech headaches.
• Mobile-first: Works great on any smartphone, making it easy to accept donations on the go.
• Fast transfers: You can move funds to your bank account quickly (though instant transfers have a small fee).
• Low barrier for giving: A donor doesn’t need to visit your website or fill out a long form, they just send money.

Drawbacks and limitations

• No tax receipts: Cash App doesn’t send donors a donation receipt, so you’ll need to do that manually if they ask.
• Not built for nonprofits: There’s no donor tracking, no recurring donation feature, and no tools for managing campaigns.
• Limited support: If something goes wrong, customer service can be slow or hard to reach.
• Security gaps: While the app uses encryption, your donors' funds aren’t FDIC insured.
• Not ideal for growing orgs: If you’re planning larger events or need tools like event ticketing, Cash App won’t help you get there.

Cash App can be great for quick fundraising pushes or when you’re just getting started, but it’s not a full solution.

Understanding Cash App processing fees for nonprofits

One of the biggest questions nonprofits ask is: “How much does it cost to use Cash App?” And the answer depends on how you’ve set up your account.

If you’re using a Cash for Business account (which is required to accept donations legally), there’s a standard processing fee of 2.75% for every payment you receive. So, if someone donates $100, your nonprofit gets $97.25.

If you want your money instantly transferred to your bank account, there’s an extra fee, usually around 1.5%. You can skip that fee by waiting 1–3 business days for a standard deposit.

Let’s compare this quickly:

While Cash App’s fees are pretty simple, they’re not the lowest, and you won’t get extras like recurring giving or donor reports included. If you need those tools, the fee might not be worth the tradeoff.

Best practices to collect donations with Cash App

Once you’re set up, the next step is getting the word out, and making it easy for people to give. These tips can help you get the most out of Cash App as a donation tool.

Leverage Cash App across your channels

Share your $Cashtag and QR code everywhere your audience is. Post them on social media, include them in emails, add them to your website, and print them on flyers or donation boxes at events. The more visible your donation link is, the more likely people are to use it.

Combine Cash App with other payment options

Not every donor uses Cash App. To reach more people, offer credit cards, ACH, or other online payment processing tools alongside it. You can mention Cash App as one option, but don’t make it the only one, especially if you rely on older or less tech-savvy donors.

Set donor expectations

Because Cash App doesn’t send tax-compliant receipts, be upfront about that. Let donors know that if they need a receipt, they can request one from your team. You can even create a simple form to collect donor info so you can follow up with personalized thank-yous.

These small touches help you stay professional, even when using a casual app.

Is Cash App the right app for nonprofits? When to consider alternatives

Cash App can be a helpful tool, but it’s not the right fit for every organization. Whether or not it works for you depends on your size, your goals, and how you plan to grow.

For small or grassroots nonprofits, Cash App is a quick and simple way to collect one-time gifts. It’s perfect for things like pop-up events, peer-to-peer fundraisers, or local campaigns where people already know and trust your team.

But if your nonprofit is growing, or you want to build long-term relationships with donors, you’ll likely need more. Cash App doesn’t support recurring donations, event ticketing, or donor data. It also won’t help you track who gave what or automate follow-ups.

That’s when it makes sense to look at platforms built for nonprofits. Harness, for example, offers tools like personalized donation pages, built-in texting, real-time reporting, and expert support to help you raise more, with less guesswork.

Grow donor relationships over time

Cash App is a quick, simple way to start collecting donations, especially if your nonprofit is small, new, or running a short-term campaign. It’s easy to set up, works well on mobile devices, and gives your donors a familiar way to give. But it also comes with real limitations: no tax receipts, no recurring giving, and no tools to help you grow donor relationships over time.

If you’re serious about growing your impact, you’ll eventually need more than just a payment app. That’s where Harness comes in. We provide nonprofits with tools designed to build lasting support, like branded donation pages, recurring gift options, event tools, and expert guidance that fits your goals. You don’t just get software. You get a partner.