India’s nonprofit ecosystem is massive. With more than 3.3 million NGOs registered across the country, the sector plays a crucial role in healthcare, education, disaster relief, and more. In FY23, individual donations crossed ₹37,000 crore, largely powered by UPI and other digital platforms.
This rise in digital payments India brings both opportunity and responsibility. NGOs manage a wide range of donation flows, such as recurring monthly contributions, event-based fundraising, and project-specific funding.
A reliable NGO donation payment gateway is essential for building donor trust, ensuring compliance, and simplifying financial operations.
In this article, we’ll look at how NGOs can choose and optimise a donation payment gateway to improve donor experience, manage transaction volumes, and strengthen their overall fundraising strategy.
Understanding the NGO donation landscape in India
Fundraising in India has changed quickly over the past few years, especially since the pandemic. More people are giving online, and nonprofits have had to adapt to meet them there.
Growth of digital donations post-COVID
COVID-19 pushed many NGOs to explore online fundraising out of necessity, and they haven’t looked back since. Some key changes include:
- Platforms like ImpactGuru saw donations double post-COVID
- They now process around 2.5 donations every minute
- Peer-to-peer campaigns and crowdfunding became go-to tools
This shift has opened up new opportunities, especially for NGOs that invest in the right digital infrastructure.
Government regulations and FCRA compliance
To ensure transparency and proper use of funds, the government tightened compliance norms:
- Under the FCRA, NGOs must register or get prior approval from the Ministry of Home Affairs
- Since 2020, all foreign donations must go through a designated SBI account in New Delhi
- Stricter rules have increased the need for accurate, auditable donation tracking
Donor preferences are changing
Today’s donors expect a smooth experience, similar to what they get while shopping online. Preferences have shifted towards:
- Quick checkout processes
- Transparent donation flows with receipts and impact updates
- Mobile-first payment methods like UPI, wallets, and credit/debit cards
To keep up, NGOs need a donation payment gateway that is simple, secure, and built for modern giving habits.
Why a dedicated donation payment gateway matters
Most regular payment gateways are set up for online retail, not donations. They’re good at processing one-time purchases, but they often underestimate nonprofits’ needs. Using an NGO donation payment gateway makes things far easier for both the organisation and its supporters:
- Recurring Donations: Donors can choose to give monthly or quarterly without having to re-enter details each time.
- Automated Tax Receipts: Contributors expect clear, timely documentation for their donations. A donation gateway handles this instantly.
- Donor Management Tools: When integrated with your CRM, the gateway can record giving history and donor preferences.
- Trust and Transparency: When the donation process feels smooth, secure, and professional, people are more likely to return.
Key features to look for in a donation payment gateway
Not all payment gateways are built with nonprofits in mind. For NGOs, the right donation payment gateway should support relationships, reduce admin effort, and make giving feel easy and secure. Here’s what to look for:
1. Support for recurring donations
Recurring donations keep things steady. They give nonprofits something to count on month after month. The gateway you choose should make it easy for donors to set that up, whether it’s once a month, every quarter, or something else.
2. Customisable donation forms
Your donation form should feel like a natural extension of your website. Look for gateways that let you brand the form, set suggested amounts, and add custom questions or fields when needed.
3. Easy CRM or donor database integration
Manually tracking donations is a headache. A reliable gateway should sync smoothly with your CRM or donor management tools, so you can keep records accurate and automate follow-ups.
4. Multiple payment options
Donors expect choices, which means offering options like UPI payments, debit cards, credit cards, or mobile wallets. The easier you make it to give, the more likely they are to complete the donation.
5. Auto-generated tax receipts
Timely tax receipts matter to donors, especially those giving larger sums. Choose a gateway that automatically sends compliant receipts without extra steps for your team.
6. Donor data and insights
The best gateways also offer analytics, helping you track donation trends, identify major donors, and understand which campaigns are working best.
Optimising user experience to boost donations
Small tweaks in design, layout, and messaging can influence whether someone completes a gift or clicks away. Here’s how NGOs can create a donation journey that feels simple, personal, and reassuring.
Mobile-responsive and accessible donation pages
Most people give on the go. If your donation page isn’t mobile-friendly, you risk losing potential supporters. The page should load quickly, adapt to different screen sizes, and be easy to navigate.
Keep the process short and simple
The fewer steps it takes to donate, the better. Long forms and unnecessary fields can frustrate donors. Aim for a clean layout with just the essentials.
Use clear, action-driven buttons
Don’t hide the goal. Buttons like “Donate Now” or “Support a Child” work best when they’re large, bold, and placed front and centre.
Show the impact with visuals and stories
Photos, short videos, or quotes from beneficiaries can make your cause real. When donors see who they’re helping, they’re far more likely to follow through.
Thanking donors instantly
After someone donates, say thanks right away. A quick message on the screen, followed by a confirmation email, goes a long way.
Integrating a payment gateway into your NGO website
Getting a donation gateway up and running on your website doesn’t have to be overwhelming. With a little prep and the right tools, you can put everything in place without needing a developer on staff.
1. Pick a gateway that fits
Start by finding one that suits nonprofit work. Look at the fees, payment types it supports and whether it handles things like recurring donations or tax receipts.
2. Register for a merchant account
Before you can begin accepting payments, most providers will ask for your NGO’s registration details and documents. It’s mainly for compliance, and once it’s done, you’ll avoid delays down the line.
3. Get API keys
Once you’re approved, the platform will give you API keys or plugin access. These connect your website securely to the payment system.
4. Add the gateway to your website
- WordPress: Use plugins like GiveWP or WP Simple Pay.
- Wix: Add built-in payment options or embed HTML donation forms.
- Custom CMS: Work with a developer to integrate the API or drop in pre-built forms.
5. Use embeddable forms or plugins
Most gateways offer ready-made forms or plugins, which can be added without needing to code from scratch. These save time and help maintain consistency.
6. Test everything first
Use the “sandbox” or test environment to check if payments are going through properly. Make sure confirmation emails and receipts are triggered correctly.
7. Ask for help if needed
If this feels too technical, it’s worth getting a developer involved either in-house or as a short-term partner. A smooth donation process is well worth the investment.
Ensuring security and compliance in NGO transactions
Donors need to know that their payment and personal details are safe. At the same time, your NGO has to meet regulatory standards. Here’s how to cover both bases.
Secure the tech first
- Your website should have an SSL certificate to keep donor data encrypted.
- Choose a payment gateway that’s PCI-DSS compliant, which means it follows strict security rules for handling card details.
Follow FCRA rules for foreign donations
- If you’re accepting donations from outside India, you’ll need valid FCRA registration and a designated SBI account in New Delhi.
- Keep clear, organised records of who donated, how much, and how the funds were used. This helps with audits and annual filings.
Be transparent with donors
- Make sure your site has a clear privacy policy explaining how donor data is used.
- Be upfront about payment security, refund policies, and how donations are allocated.
Handle donor data responsibly
- Only collect what you need: usually name, email, and payment details.
- Store information in secure, access-controlled systems, and take regular data backups.
Case studies: How Indian NGOs are using payment gateways effectively
While choosing the right payment gateway is important, how it’s used in real-world scenarios is what truly shows its impact. Here’s how two Indian NGOs are actually using an NGO donation payment gateway to make giving easier and more effective.
1. Akshaya Patra Foundation: Sustaining mid-day meals through recurring donations
The Akshaya Patra Foundation, praised for its mid-day meal program, has enabled donors to set up monthly contributions, allowing them to plan and execute meal distributions without financial uncertainties. This approach has helped expand their reach to over 2.25 million children across 16 states and 3 union territories.
2. Shree Dhevi Charitable Trust: Leveraging WhatsApp and UPI for quick donations
Shree Dhevi Charitable Trust keeps things simple when it comes to collecting donations. They use a basic but effective method: sharing a UPI QR code on WhatsApp. Donors just scan the code using apps like Google Pay and send their contribution—no login, no forms. It’s quick, and it works well for reaching people who prefer giving on their phones.
For NGOs planning specific fundraising efforts, Pine Labs’ gateway offers useful tools. They can set up custom payment links for different causes, take payments through UPI, cards, or net banking, and track donation activity in real time. It helps them keep things in order and get a better sense of which campaigns are actually working.
How to choose the right payment gateway for your nonprofit
When it comes to selecting a payment gateway, there’s no one-size-fits-all. The right choice depends on your organisation’s size, goals, and how you interact with donors.
- Compare transaction fees, setup costs, and the quality of customer support.
- Tools for automated receipts, donor communication, and form customisation can save hours of manual work.
- Some platforms, including Pine Labs Online, offer special packages or discounted rates for nonprofits.
- A good donation payment gateway makes the donation process easy and rewarding for your supporters.
Here’s a quick comparison of the top 3 gateway providers for your convenience:
| Feature | Pine Labs Payment Gateway | Razorpay | Instamojo |
| Setup Fee | 0 | 0 | 0 |
| Annual Maintenance Fee | 0 | 0 | 0 |
| Domestic Transaction Fee | 1.5%–3% + GST, depending on payment method and volume | 2% + GST for standard cards and UPI; 3% + GST for Amex, Diners, international cards, EMI, and corporate cards | 2% + ₹3 per transaction + 18% GST for most payments; 5% + ₹3 for digital goods |
| International Payments | Supported with approval, multi-currency support, and real-time FX conversion | Supported with approval; fees vary | Available on request, subject to approval; 1% additional fee |
| Recurring Donations | Supported via Subscription APIs | Supported via Subscriptions and UPI AutoPay | Supported via Smart Links |
| Payment Methods | UPI, cards, net banking, wallets, EMI, BNPL, QR codes | UPI, cards, net banking, wallets, EMI | UPI, cards, wallets, and net banking |
| Integration Options | APIs, SDKs, plugins, Payment Pages, Payment Links | APIs, SDKs, plugins, Payment Pages, Payment Links | No-code setup, embeddable links |
| Donor Communication | Customisable messages, real-time reporting | Automated 80G receipts, email confirmations | Basic email receipts |
| Settlement Time | T+2 working days | T+2 working days | T+3 working days |
| Customer Support | 24×7 phone, email, and WhatsApp support | 24×7 email and ticket-based support | Email and chatbot support |
FAQs
1. Is there a donation gateway with zero setup fees?
Yes, a few providers offer no-cost setup for NGOs. Be sure to read the fine print and check for any hidden charges on transactions.
Can we accept foreign donations through online gateways?
You can, provided your NGO is FCRA-registered. Choose a gateway that supports international payments and currency conversion.
Will donors get automated receipts?
Most modern gateways send receipts immediately after payment. This adds a professional touch and helps donors with tax claims.
Conclusion: Digitise donations, maximise impact
The right donation payment gateway reduces your administrative burden, strengthens donor relationships, and makes it easier to raise consistent support. Transparency, security, and ease of use all play a big role in building donor confidence.
Pine Labs Online offers a dependable and scalable solution tailored for nonprofits. From recurring donations and UPI support to campaign tracking and automated receipts, it helps you stay focused on your mission while handling the tech behind the scenes.
Empower your cause—contact us and switch to a dedicated donation payment gateway with Pine Labs Online today.