Why Nonprofits Are Choosing Mightycause Over PayPal for Fundraising
When it comes to online fundraising, PayPal fundraising is often one of the first options nonprofits consider. It’s familiar, widely used, and easy to set up. But is it really the best solution for nonprofit fundraising in 2025?
In reality, PayPal was built for basic online payments, not for managing the complex needs of nonprofit fundraising campaigns, donor relationships, or reporting. Enter Mightycause, a purpose-built fundraising platform that offers far more powerful features for nonprofits and at a lower cost.
In this post, we’ll break down how the Mightycause fundraising platform compares to the PayPal donation button for nonprofit fundraising, including pricing, tools, donor management, and why so many small and midsize nonprofits are making the switch.
PayPal Fundraising vs. Mightycause
| Feature | PayPal | Mightycause |
| Built for Nonprofits | ❌ No | ✅ Yes |
| Donation Forms | Basic buttons | Fully customizable, embeddable forms |
| Donor Management (CRM) | ❌ None | ✅ Included CRM, reports & segmentation |
| Recurring Giving Support | ✅ Basic | ✅ Advanced customization, tracking |
| Peer-to-Peer Fundraising | ❌ Not supported | ✅ Yes – free and included |
| Event & Team Fundraising | ❌ No | ✅ Yes |
| Donation Processing Fees | 1.99% + $0.49 | 0.95% + $0.39 average processing rate |
| Monthly Subscription Fees | ❌ None | ❌ None (free to use) |
Why PayPal Falls Short for Nonprofit Fundraising
PayPal is often used as a default donation method for many new or small organizations. While PayPal may work for simple transactions, it lacks critical features most nonprofits need to grow donations, retain donors, and run professional fundraising campaigns.
1. No Donor Management
PayPal: With PayPal, nonprofits receive limited transaction details and no ability to manage donors on the platform. Nonprofits cannot segment donors, send targeted follow-ups, track donation history across campaigns, or generate meaningful reports.
Mightycause: Mightycause provides nonprofits a free built-in donor management/CRM tool system – Contacts. Contacts is designed to give nonprofits the ability to easily segment donors, track donor interactions, run reports, and improve donor retention with data-driven strategies.
2. Limited Fundraising Tools
PayPal: When it comes to fundraising, nonprofits need tools that are comprehensive, easy, and flexible to fit the needs of whatever campaign they plan to run. PayPal is primarily a payment processor, so its fundraising capabilities are minimal. It doesn’t include tools like event registration, ticketing, fundraising thermometers, or social sharing features that help drive donations and engagement. There’s no built-in way to manage matching gifts, recurring donation prompts, or donor thank-you messages.
Mightycause: Mightycause is an all-in-one fundraising platform designed for nonprofits. Mightycause provides a full suite of fundraising tools that gives you everything you need to fundraise effectively in one place.
With Mightycause, nonprofits gain access to::
- Custom donation forms that embed directly on your website
- Peer-to-peer fundraising capabilities
- Fundraising events and team tools
- Goal thermometers and cover image customization
- And much more!
3. No Campaign or Engagement Features
PayPal: The PayPal donation button allows nonprofits to accept donations, but it doesn’t offer any built-in tools to run fundraising campaigns, engage donors, or track progress toward goals. There are no options for customizable donation pages, team or peer-to-peer fundraising, matching grants, or campaign updates.
Mightycause: Mightycause, on the other hand, is built specifically for nonprofits, with powerful campaign and engagement features included. From branded fundraising pages and real-time goal tracking to peer-to-peer campaigns, team fundraising, and donor communication tools, Mightycause makes it easy to create compelling campaigns that inspire action and build lasting donor relationships.
4. Hidden Complexity in PayPal Giving Fund
PayPal: PayPal Giving Fund may appear to be a simple way to raise money, but it comes with some hidden complexities that can be frustrating for nonprofits. Donations can be disbursed up to 45 days later and donor information may not be shared, making follow-up and stewardship impossible. Donations can take weeks to process and may show up without clear attribution.
Mightycause: While Mightycause also disburses donations through a donor-advised fund (Mightycause Charitable Foundation), funds are distributed twice a month, and nonprofits receive full access to donor information in real time. This gives you the data you need to thank supporters promptly, build relationships, and retain donors more effectively.
5. Mightycause Saves You Money (and Headaches)
Many nonprofits assume PayPal is a cheaper option when it comes to receiving donations. But when you dig into the numbers, fees, and consider the fundraising tools you don’t get, Mightycause offers a far better return with $0 subscription fees.
Transparent, Low Processing Fees
- PayPal: 1.99% + $0.49 flat processing rate
- Mightycause: 0.95% + $0.39 average processing rate.
Mightycause keeps fundraising affordable. That’s why, we guarantee your organization will never see more than an overall rate of 1.99% and 30¢ in donation processing fees – and most organizations pay even less! As well, Mightycause doesn’t rely on tipping models like Givebutter or Zeffy, which can confuse donors or often hurt conversion rates.
6. Built for Small Nonprofits with Big Missions
PayPal: PayPal wasn’t built with nonprofit fundraising in mind, it’s a general payment platform. That means many small nonprofits are left trying to piece together tools and workarounds to fundraise effectively.
Mightycause: Mightycause is purposefully designed for small to mid-sized nonprofits that have limited staff and need intuitive tools that are easy to use. Whether you’re running a GivingTuesday campaign, organizing a charity run, or collecting recurring gifts, Mightycause provides affordable, scalable tools to help you grow your impact without the hassle or breaking your bank.
7. Real-Time Reporting and Donor Analytics
PayPal: PayPal offers limited reporting. Nonprofits will be provided with basic transaction details like donor name (if provided), donation amount, and date. It’s primarily designed for general payment processing, so nonprofits can struggle to extract meaningful insights or donor information needed for stewardship and long-term fundraising strategies.
Mightycause: Mightycause provides comprehensive reporting tools that go far beyond transaction logs. Nonprofits have access to full donor profiles, recurring gift tracking, campaign performance metrics, data exports, and year-over-year comparisons. Have a custom question you want asked during the donation checkout process? The Mightycause donation report will provide you with all of those answers and much more!
Mightycause is the Smarter Choice for Growing Nonprofits
If your nonprofit has outgrown the basic PayPal fundraising button, it’s time to upgrade to a platform that was made for you. With Mightycause, you’re not just collecting donations: you’re building campaigns, managing relationships, and growing your mission with tools designed for impact. With no subscription fee and a lower average processing rate than PayPal, Mightycause gives you more of every donation you receive. Plus, it’s free to get started!