For nonprofit websites, the ability to accept donations online can be an easy and cost-effective way to generate funds for the organization or cause. People are more likely to give if there is a quick, convenient, and secure way to do so — and a simple “Donate Now!” button can be just that. Most online giving is done with credit cards, so configuring a website to accept this method of payment in a secure environment is necessary.

Several options exist for including this functionality on a site.

Build the Functionality In-house

Organizations that employ a web specialist (or are able to contract with one) can add this functionality themselves. Although this method can be expensive and complicated, if you have someone with the right skills it allows for the most creativity and flexibility in terms of web page design. Building the functionality right into your own website also allows the donor to perform the transaction without leaving your site.

The steps for building your own donation functionality are:

• Establish SSL (secure socket layer) technology for secure commerce.
• Create a donation form.
• Authorize credit card acceptance.
• Establish a merchant account and a processing method for donations.

SSL technology must be supported by your existing Internet service provider (ISP); if not, you will need to change providers. Most companies offer this service for a relatively small monthly fee. When a web address starts with https:// you know you are on a secure page.

Once SSL technology is established, an online donation form needs to be created. It should require essential information, such as name, credit card type and number, expiration date, e-mail address, donation amount, and other details you deem important. You can also take advantage of this opportunity to ask the donor to sign up for a newsletter list or other regular communication from your organization.

Once the website is set up properly with SSL and a donation form, the next step is to enable credit card authorization by setting up a merchant account. This is the most complicated and expensive part of the process, because it includes payment for the merchant account and dealing with credit card companies. You also need to decide if donations are to be processed manually or if the entire process will be automated.

Manual processing requires that you receive the donation information, fill out a paper receipt, and call the toll-free credit card company number (or use a dial-up terminal) to process the order. TechSoup (an organization that offers nonprofits deeply discounted software) is a good place to shop for the necessary equipment; bundles may include a credit card processing terminal, an electronic printer, and a processing account with National Processing Company (NPC).

Use a Donation Processing Service

If building your own donation processing system seems too complicated or is not an option, you can outsource to a company that specializes in such services. These companies are also known as application service providers (or ASPs).

Acceptiva and Network for Good are examples of ASPs that provide this service for nonprofits, and there are many others. You benefit from the look of a custom donation page and incorporate it into your website, but without the technical work associated with building it yourself. Of course, the services are not free.

Be sure to research your options carefully and understand all terms and fees (set-up and ongoing) before you sign up. Some questions to consider asking a potential donation processing ASP:

• How do I receive the donations, and how often?
• Can the payment processing forms be customized to match my site?
• Can I use my existing merchant account?
• Can I ask my visitors questions specific to my organization?
• How do my visitors get a receipt, and what will appear on the credit statement?
• How do I know who has paid what?
• How do you use the names and e-mails of those who use the service?

Use a Charity Portal

A charity portal is essentially a directory of nonprofits with donation processing built right in. Examples of charity portals are Network for Good and GreaterGood. Organizations list themselves at the charity portal and pay a fee for donation processing. You can add a donation information page to your own website that summarizes your organization’s mission or cause; the page would also include a link to your favorite charity portal, which will display your organization’s profile and ensure that secure transactions can take place.

It’s a good idea to have the charity portal link open in a new window so that the donor knows she is leaving your website; this way, after the donation has been processed it is easy to return to your site. With a charity portal, you get the added benefit of the portal's own website advertisements and brand name recognition.

A similar approach is to use a payment service, such as PayPal, which allows you to accept credit card donations without establishing a merchant account. Visit PayPal to learn more about how to incorporate this service into your website.

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