If you're part of a nonprofit, you probably wear a dozen hats, and "payments expert" might not be one of them.
But figuring out how to receive donations easily and quickly? That’s part of the job. One option that’s been popping up more lately is Zelle. You might’ve seen it in your personal banking app, or maybe a board member suggested it. Either way, the question is the same: Can Zelle actually work for your organization?
In this guide, we’re going to walk through what Zelle is, how it works for nonprofits, what’s great about it, and what’s not. We’ve talked to teams like yours, tested different ways to make giving easier, and learned a few lessons that might save you time (and headaches). Plus, we’ll look at how it stacks up to other tools out there.
Quick heads-up before we dive in: If you're looking for a way to not just accept donations, but to grow them, like building monthly giving, automating follow-ups, or understanding what drives your donors, Harness can help. We’ve built tools made for teams just like yours.
What is Zelle and how does it work for nonprofit donations?
Zelle is a money transfer tool that lives inside many banking apps. It lets people send money to someone else using just an email address or phone number, no need to download another app or remember account numbers. For donors who already use Zelle personally, it feels easy and familiar.
For nonprofits, Zelle works a bit differently than the usual donation platforms. There are no fancy dashboards or built-in donation forms. It’s basically just a way to send and receive money, quickly, and often with no fees involved.
But here’s the catch: Zelle was built for person-to-person transfers, not for nonprofits. That means you won’t get donor data automatically, and you’ll need to do some work behind the scenes to track gifts and issue receipts. Still, for some nonprofits, especially smaller teams or local causes, it can be a useful, low-cost option for accepting quick donations.
How financial institutions enable nonprofits to receive donations via Zelle
Here’s the thing, Zelle isn’t its own app you sign up for. It’s a service that comes through a bank or credit union. So whether or not your nonprofit can use Zelle depends on where you bank.
To receive donations, your nonprofit needs a business bank account at a financial institution that partners with Zelle. Most big banks offer it, and many community banks and credit unions do too. If your bank supports Zelle for business accounts, you can enroll with an email address or phone number, whichever you want donors to use.
Once you’re set up, people can send donations straight from their online banking app using your info. There’s no fee from Zelle itself, and the money usually shows up almost instantly.
That said, not every bank offers Zelle for business or nonprofit accounts, so you’ll want to double-check before promoting it to donors. And keep in mind, Zelle doesn’t give you donation tools or tracking. That part’s still up to you.
Step-by-step: how to set up Zelle for your nonprofit
Getting started with Zelle isn’t too complicated, but there are a few key steps to follow if you want things to go smoothly.
1. Open a nonprofit business bank account
First, make sure your organization has a business checking account at a financial institution that offers Zelle for businesses. This isn’t the same as a personal account, banks treat nonprofit and business accounts differently, especially when it comes to features and fees.
2. Enroll with an email or phone number
Once your account is ready, you can sign up for Zelle using an email address or phone number. This is what donors will use to send funds. Try to choose something simple and easy to remember, like donations@yournonprofit.org or your main office line.
3. Test it
Before you announce it to donors, run a few tests. Make sure money is showing up in your account, that notifications work, and that everything feels smooth on both ends. Better to catch hiccups now than during a live campaign.
4. Add Zelle to your donation page and campaigns
Include Zelle as a payment option wherever you promote giving, on your donation page, in emails, at events, and on social media. Give clear instructions, like “Send donations to giving@ourcause.org using Zelle in your banking app.”
5. Let donors know what to expect
Since Zelle doesn’t give donation receipts automatically, set expectations. Let donors know you’ll send a confirmation email, or ask them to include their name and email in the memo line when they donate.
Benefits of using Zelle for nonprofits
Zelle isn’t perfect, but it does have some real advantages, especially for small to mid-size nonprofits that need quick, cost-friendly ways to accept donations.
1. Cost-effective donations with no transaction fees
Most donation platforms take a cut of every gift. Zelle doesn’t. If your bank doesn’t charge anything extra, you get 100% of the donation, every time.
2. Instant access to donated funds
Donations usually land in your bank account within minutes. That’s great for urgent campaigns or times when you need cash flow fast.
3. Ease of use for donors
If someone already uses online banking or the Zelle app, sending money takes just a few taps. No new logins, no downloads, it feels natural for a lot of people.
4. Wide access through major financial institutions
Zelle is built into the banking apps of hundreds of financial institutions. That means donors likely already have access, they just need your nonprofit’s email or phone number.
5. Simple donation process
Donors don’t have to fill out long forms or deal with popups. All they need is your info and their banking app. That simplicity can lower the barrier to giving.
6. Helpful for short-term or peer-to-peer campaigns
If you’re doing a quick fundraiser, like a birthday or giving challenge, Zelle can be a fast, no-hassle option to collect donations directly from supporters.
Limitations of Zelle for nonprofit fundraising
Zelle has its upsides, but it’s not built with nonprofits in mind. And depending on how your organization runs fundraising, some of these gaps could be dealbreakers.
1. No support for recurring donations
Zelle is a one-time payment tool. There’s no way for donors to set up monthly giving or automate future donations. If recurring gifts are a big part of your strategy, this is a major drawback.
2. Limited donor data and reporting
Zelle doesn’t collect donor names, emails, or addresses unless donors manually add that info to the memo line. That makes it tough to send receipts, say thank you, or track giving over time.
3. Domestic use only (U.S. only)
Zelle only works between U.S.-based bank accounts. If you have international donors, they’ll need another option.
4. Difficulties with donation receipts and tax letters
Since you don’t automatically get donor info, you’ll have to ask for it, and manually match payments to donors. That can make issuing receipts or year-end giving statements a headache.
5. No CRM or donor software integrations
Zelle doesn’t sync with your fundraising tools or CRM. That means more manual work tracking donations, updating donor profiles, and keeping things organized.
6. No dispute resolution
Zelle payments are instant, and final. If a donor makes a mistake, or if someone sends money to the wrong account, there’s no built-in way to reverse it.
Security and compliance tips for nonprofits using Zelle
Zelle is fast and simple, but when you’re handling donor money, speed isn’t the only thing that matters. Security and compliance count too, and if you're using Zelle, you’ll need to cover a few bases yourself.
Use a business account, not a personal one.
This isn’t just a best practice, it’s a protection. Business accounts usually offer better fraud monitoring, and using one helps your nonprofit stay on the right side of banking rules.
Secure your login info and enable alerts.
Use strong passwords, enable multi-factor authentication, and set up alerts for every transaction. If something strange happens, you’ll want to catch it quickly.
Track every donation manually.
Since Zelle doesn’t offer reporting tools, you’ll need your own system to log donations. That can be a spreadsheet, accounting software, or your donor CRM, whatever works for your team.
Ask donors to include their name and email.
Encourage donors to put their contact info in the memo line. That’s often the only way you’ll know who sent the money, especially if they’re not a regular supporter.
Stay compliant with IRS donation rules.
Zelle won’t send tax receipts. That’s on you. Make sure to keep proper records and send out acknowledgment letters for any donation over $250, per IRS guidelines.
How Zelle compares to other payment methods for nonprofit giving
Zelle is just one tool in the donation toolbox. It’s fast and free, but it’s not built for long-term donor engagement. Here's how it stacks up against some of the more common giving methods nonprofits use today.
1. Zelle vs PayPal
PayPal is a trusted name in online payments and offers donor receipts, reporting, and even nonprofit discounts. But fees can add up. Zelle doesn’t take a cut, but it also doesn’t offer any tracking or built-in donation tools.
Best for: Quick, fee-free gifts (Zelle) vs. donation management with donor info (PayPal)
2. Zelle vs Cash App
Cash App is easy and mobile-friendly, and many donors are already using it. Like Zelle, it’s peer-to-peer, but unlike Zelle, it’s not bank-backed in the same way, which may raise concerns for some donors. Both lack CRM integration and recurring giving features.
Best for: Casual, one-time gifts where donors already use the app
3. Zelle vs credit card processors
Traditional processors like Stripe or Square offer detailed reporting, CRM integrations, and tax receipts, but they charge fees per donation. Zelle offers no extras, but you get every dollar.
Best for: Scalable, trackable donations (credit cards) vs. smaller, instant gifts (Zelle)
4. Zelle vs Harness
Harness is built for nonprofits from the ground up. It gives you recurring donation tools, automated thank-you messages, donor profiles, and real-time reporting. While Zelle helps you receive a gift, Harness helps you build lasting relationships.
Best for: Growing giving over time, tracking impact, and making the donation experience feel seamless for both your team and your donors
Making the most of Zelle in your fundraising efforts
If you’re going to use Zelle, make it easy for donors to find, trust, and use. It’s not just about having it, it's about how you roll it out.
Promote it on your donation page
Don’t bury it. Add a clear section that says something like “Want to give through your banking app? Send your donation using Zelle to donate@yourorg.org.” Include step-by-step instructions if needed.
Use social media to drive traffic
Zelle is great for impulse giving. When you’re running a quick campaign or responding to a moment, like a disaster relief effort, post about it. Keep it short and actionable: “Send support now using Zelle, fast, secure, and fee-free.”
Add it to fundraising events
For live or virtual events, Zelle can be a perfect low-friction option. Include your Zelle info on event slides, in your emcee’s script, and on signage. Make giving feel instant and easy.
Use email to educate and encourage
Include Zelle instructions in your fundraising emails, especially to your existing supporters. They may already use Zelle and just need a reminder that your org accepts it.
Train your team
Make sure staff and volunteers know how Zelle works. They should be able to answer questions, help donors use it, and know how to record the donations for follow-up.
From one-time gifts to long-term support
Zelle can be a helpful tool, it’s quick, easy, and free to use if your bank supports it. For one-time gifts or quick-turn campaigns, it offers a simple way to receive funds without the usual fees or setup.
But as your nonprofit grows, so does your need for tools that support long-term relationships, recurring giving, and detailed donor insights. That’s where Zelle falls short.
If your team is spending too much time tracking donations manually or missing out on recurring gifts, it might be time to upgrade your approach.
That’s where Harness comes in. We’ve worked alongside hundreds of nonprofits to help them build smarter, more sustainable giving programs. With automated donor follow-up, monthly giving tools, personalized support, and reporting that actually helps, Harness turns one-time givers into lasting supporters.
If you're ready to move beyond quick donations, and into meaningful growth, let’s talk.
