Shopify for NonProfits: All Things You Need to Know 2024

Are you looking for an ideal partner to really help a nonprofit advance its mission? Shopify for nonprofits can really hook you up with amazing features that are made specifically with organizations in mind. No longer does it just have a pretty online store to sell stuff; Shopify allows organizations to accept one-time and recurring donations directly through their online stores.

In this post BSS Commerce Shopify will look at Shopify for nonprofits, how it works and how it can deliver cost effective solutions to help you make the most of your resources. We’ll also look at the exclusive benefits for nonprofits and how Shopify can be a game-changer for positive change on a budget.

Now let’s get started!

What is a Nonprofit Organization?

A nonprofit organization (NPO) is a legal entity that exists to promote a social cause or public benefit. Unlike for profit businesses, nonprofits reinvest any surplus back into their mission rather than to shareholders.

Nonprofits operate on a different model that is heavily reliant on donations, grants and fundraising events to fund their activities. Success is not measured in profits but in the positive impact they have in their community.

However, nonprofits organization face several unique challenges:

Limited Budget: They need to raise funds continuously to support their operations.
Competition for Donor Attention: There is intense competition among nonprofits for donor attention.
Regulatory Compliance: Navigating the complex rules to maintain tax exempt status is tough.
Balancing Mission and Sustainability: Nonprofits must find a way to fulfill their mission while ensuring operational sustainability.

Shopify NPO: Everything You Need to Know

1. What is Shopify NPO?

Shopify NPO, or Shopify for Nonprofits, is a program for nonprofits to get specialized eCommerce at discounted rates. This program understands the unique needs of nonprofits so you can manage donations, sell merchandise and engage with your supporters through an online platform.

Shopify NPO is a version of the Shopify platform tailored for nonprofits. It has all the tools to help charities and other nonprofits to have a robust online presence and run their operations.

What distinguishes Shopify NPO? Primarily, it offers discounted pricing for eligible organizations, making powerful eCommerce tools more accessible. However, the focus on pricing is not all that is offered by Shopify NPO.

Here’s how Shopify NPO could make your nonprofit better:

Give supporters a quick way to give.
Build an online store with branded merchandise to generate extra revenue.
Organize and promote fundraising events with some finesse using the platform.
Automate those tedious, time-consuming chores.
Use the built-in marketing tools to keep your donor connections solid.

2. Who is Eligible to Apply for Shopify NPO?

Generally, eligibility conditions for the Shopify NPO include:

Official Registration: Organizations must have an official registration as a nonprofit or charitable organization.
Tax-Exempt Status: Organizations must prove valid tax-exempt status, indicating that they are not for profit.
Clear Mission: The organization must work toward a well-defined charitable or community-focused mission.

Take Note: All applications are evaluated by Shopify case by case. Although satisfying the requirements qualifies you for entering the program, it does not guarantee acceptance.

3. Top Benefits of Using Shopify for NonProfits?

Indeed, the use of Shopify for nonprofits organizations avails a number of positive amenities to institutions as regard the advancement of donation collection and streamlining operations. Some top advantages include:

Discounted Plans: The non-profit organizations were given attractive price plans like NPO Lite and NPO Full under which they would be granted decent discounts when compared to full rates. This way powerful eCommerce tools become affordable even for organizations which operate at a low budget.
Less Transaction Charges: The transaction charges on Shopify Payments get lower and benefit the non-profit organizations for higher retention of the collected proceeds. This is especially useful for an organization operating on a shoestring budget.
Selling Merchandise: Nonprofits can establish online stores where they can sell branded merchandise as an alternative revenue stream while creating additional awareness of their cause.
Streamlined Donation Process: Donate to nonprofits that have set up systems for one-time and recurring donations through their online stores, making it easy for the supporters to contribute towards their cause.
User-Friendly Interface: A very user-friendly interface which helps even non-tech-savvy nonprofits build and manage their websites.
A Community Resource and Supporting Resources: Many apps are available in the Shopify ecosystem, as well as support resources, allowing nonprofits to improve their functionality and seek help when needed.

Shopify Pricing for NonProfits: NPO Lite & NPO Full

In this section, let’s talk about Shopify pricing for nonprofits. There are mainly two plans to consider-NPO Lite plan and NPO Full plan. These plans are meant to offer different features and prices in order to accommodate hundreds of nonprofit sizes and needs:

Option 1: NPO Lite Plan

Best suited for: For smaller nonprofits, looking forward to a cost-effective solution along with an essential feature.
Price: $29 USD per month

NPO Lite Plan: This NPO Lite plan provides a few wonderful features that aren’t typically found in the Basic Plan but comes at a monthly price of just $29 USD. It has benefits such as:

Receive Donations Through Shopify Payments: For non-profit organizations that register as a charity in the United States or Canada, it is relatively easy to accept donations through Shopify Payments to make it really easier for donors.
Minimum Transaction Charges: You will incur a lower transaction fee of 1% as opposed to the basic 2% on the Basic plan.
Lower Credit Card Rates: Exclusive lower credit card rates are given to NPO Lite plan holders by Shopify Payments, the in-house payment processing service, making your money go further in fundraising.
The Real Time Carrier Shipping: For those especially higher up the ladder is to allow you to give your donors a true live shipping cost on their shopping experience, improving donor experience and donor satisfaction.
Unlimited Staff Accounts: Everyone collaborates in a Not-for-profit, and so keeping unlimited staff accounts in the NPO Lite plan allows creating beautiful unlimited staff accounts so that team members can access the Shopify dashboard. This would be an enhancement compared to the two-account limit in the Plus plan.

Option 2: NPO Full Plan

Best suited for: NPO Full Plan is the greatest solution for nonprofits that require an advanced level of functionality with the flexibility to work independently.
Price: $99 USD per month

This NPO Full plan has more features compared to the NPO Lite plan and involves more benefits. It includes:

Lower Credit Card Rates: The NPO Full plan offers lower credit card processing rates compared to the standard Shopify plan, allowing a greater percentage of each donation to directly benefit your mission. This aligns with the rates available on the Advanced Shopify plan.
No Transaction Fee: If your organization uses a third-party payment provider, it incurs no transaction fees. All donations received are for your cause. It is much better than the one percent from the standard Shopify plan and is even better than the Advanced Shopify plan.
Unlimited Staff Accounts: You can set up as many staff accounts as you want with the NPO Full plan because it’s economy-wide participation as well as empowerment of your entire team to make it happen for your organization. More than five staff accounts provided in standard Shopify plans surpasses that.
Accept Donations through Shopify Payments: Shopify Payments provides a secure, convenient way for supporters to give to your cause. U.S. Registered charities can collect donations through Shopify Payments with minimum setup.
Real-Time Carrier Shipping: Accurate and competitive in shipping rates, improving the donor experience and purchasing process. This is present usually in higher plans which make it valuable for a non-profit organization.

Shopify Discounts for Nonprofits

You also get a 10% discount on annual fees, and this is applicable to both NPO Lite and NPO Full plans, as Shopify enables other support for nonprofits. When you sign up for the annual plan, your organization saves and can then focus on increasing the impact. The organization must meet the eligibility criteria for the discount, which is an annual billing cycle, to avail of the discount benefits.

Now that you have made your selection on any of the plans that suits your organization, setting up donations will go the same way as when one sets up a normal Shopify store. BSS Commerce Shopify will be guiding you step-by-step in using Shopify for nonprofits in this following section: The first donation setup process is almost as straightforward as adding a standard product on Shopify.

How to Start with Shopify for Nonprofits: Step-by-Step Guides

There are four steps to start with Shopify for nonprofits. Here’s how:

Step 1: Create a Shopify Account

You should get yourself a regular Shopify account first. This way, you can play with it and set up your store as you wait for your not-for-profit application to be completed. This is the best way for you to experience what Shopify has to offer, prior to choosing a specific plan.

Step 2: Apply for the Shopify NPO Program

Now that you prepared your store, it must be the right moment to apply for the NPO program. Collect relevant documents to prove nonprofit status and submit your application through the respective channel of submission at Shopify. For quick responses to your queries, please contact Shopify’s support team. There will be no hurriedness in the same because every request is given personal and individualized review.

Step 3: Customize Your Store While You Wait

Here are some tips on how great your non-profit organization can get:

Tell Your Story: Use your store to share the mission, the impact, and the main values of your nonprofit.
Optimize for All Devices: Let the site be appealing from desktop to tablet to smartphone.
Use High-Quality Visuals: Great pictures and videos are your talking points to catch your audience’s attention.
Create Clear Calls to Action (CTA): Let visitors pursue what they want most by setting excellent CTAs towards donation, volunteering, or buying stuff.
Keep It Simple: Most of the time, the most effective simple uncluttered design serves nonprofits best for easier navigation.
Custom Tax: Specific to the custom tax some states may require you to set up due to their tax laws, while in some cases, they do not charge tax on the donation; there may be states that charge tax. The right tax settings must be put in place for compliance with the local law.

Remember: Every step you take is an investment in your organization’s future success, so take your time to do things right. In patience and meticulousness, your online presence with Shopify NPO that very excellently supports and amplifies the mission of your nonprofit will birth development.

Step 4: Finalize Your Store After Approval

Once your application has been processed, you will then be able to complete the installation of your store. This might include adjustments to features in line with your approved nonprofit scheme, to finalize modifications in the design of your store.

Now is the time to implement any changes necessary and get to launch-ready status! Shopify will show those price rates applicable for nonprofit organizations after a nonprofit has been approved.

So for your plan, start small and develop into it so that the organization can grow into it.
Focus on the essential features, which directly serve the purpose of your mission, while selecting a plan that can grow with the organization.

Top 3 Best Shopify Nonprofit Apps

Here are the top 3 best Shopify nonprofit apps for nonprofit organizations:

1. Shopping Gives ‑ Donation App

The Shopping Gives app is completely end-to-end donation management app for eCommerce, DTC, and omnichannel brands. Forget about fussing over their regulatory affairs; this app has everything for compliance and regulatory demands for donations to any 501(c)(3) nonprofit.

Why Should You Choose the Shopping Gives App for Non-Profit Organizations?

Complete donation processed supported through and through with 100% compliance to regulation.
Provide an online and offline giving experience with Shopify POS.
Manage donation amounts and exclusions by product SKU and variant easily.
It assures that 100% of donations are directed only to supported nonprofits.
Gain insights that provide access to useful information for budget allocation optimization and personalization of marketing.

2. Easy Donation Shopify App

This Easy Donation Shopify app will allow you to easily have a donation widget anywhere on your site, be it the homepage, product pages, cart, checkout, blog, or on a standalone page. Now, customers can contribute whatever they want and it will be added to the order charges.

On top of that, Easy Donation Shopify app has multilingual support to answer many needs making it ideal for businesses, NGOs, and churches to have an easy and powerful way of accepting donations.

Why Should You Choose the Easy Donation App for Non-Profit Organizations?

Getting unique donation sites for your church, NGO, or non-profit to be found globally.
Choose single or multiple donation widgets, according to your plan.
Connect with NGOs and charities worldwide without restrictions.
Make your donation receipts personalized, and track contributions through admin reports.
Multi-language support for all businesses.

3. Shop for Good Donation App

Nonprofit organizations and businesses willing to support charitable causes can now use the Shop for Good Donation Shopify app to increase their arsenal for fundraising. This donation app supports a variety of donation methods, including round-up donations at checkout, contributions in a fixed amount, and percentage-of-sales donations on specific products.

With a 4.9 rating out of 5 from 148 reviews, app users benefit from the awesome combination of this app with Shopify and its automated donation feature.

Why Should You Choose the Shop for Good Donation Shopify App for Non-Profit Organizations?

Customer can round up their change to donate at the cart or checkout.
Donor-customer is granted a discount or gift to appreciate them.
Brands can donate a percentage of sales from specific products, collections, and many others.
Customers can contribute fixed amounts to charity through product detail pages (PDP), checkout, and in-store POS systems.
This app provide commercial co-venturing compliance and distribution of charity donations services.

FAQs – Shopify for NonProfits

1. What distinguishes a nonprofit organization from a not-for-profit organization?

Nonprofit organizations are structured to serve the public good and are often focused on advancing social causes, allowing them to qualify for tax-exempt status. They can have paid staff and must adhere to stricter regulatory requirements, including public financial disclosures.

In contrast, not-for-profit organizations typically focus on serving the interests of their members, such as recreational or social clubs, and do not operate with the goal of benefiting the public at large. Not-for-profits usually rely on volunteers and may not have the same legal protections or tax benefits as nonprofits.

2. Are there any specific eligibility factors that a nonprofit must meet to be allowed to use Shopify for Nonprofits?

Yes. Certain criteria have to be fulfilled by the nonprofit organization to be eligible to shop through the nonprofit plan of Shopify. They must be registered as a charity or as a nonprofit organization within Canada or the United States, along with being able to attest this fact with regulation during the application process.

3. Can I sign up for a Shopify nonprofit plan even though I do not have a store currently?

Yes. You can create a nonprofit account to register for a Shopify nonprofit plan without the existing store. You may then set up your store as you wait for your application to process and approve your access under the nonprofit plan.

4. How does one apply for the NPO program in Shopify?

Proceed to provide all details of setting up a standard Shopify account first prior to applying for the Shopify NPO program. Once the store is set up, then you can make an application through the channel specifically allocated for nonprofits in Shopify by providing all the documents that ascertain the nonprofit status of your organization.

5. How do the tax benefits differ for nonprofits and not-for-profits?

Nonprofits typically enjoy tax-exempt status under IRS regulations, allowing donors to deduct their contributions from their taxable income. This status requires nonprofits to meet specific operational transparency standards.

Conversely, not-for-profit organizations do not usually qualify for these tax benefits; donations made to them are not tax-deductible for donors, and they often face fewer regulatory requirements.

The Final Verdict

To sum up, Shopify provides a full nose with an attractive and powerful lineup of features and benefits that appeal to nonprofit organizations. If you’re a nonprofit in search of a reliable partner to support your growth, Shopify could be the transformative solution you’ve been looking for.

With its dedicated Shopify for nonprofits nonprofit plans, Shopify enables nonprofits to make a significant impact while staying within budget. For example, nonprofits save on transaction fees and credit card rates, accept donations without any hassle and create unlimited staff accounts while putting cost-effective solutions towards their missions.

Finally, BSS Commerce Shopify believes that these tutorials are beneficial to you. Be on the lookout for our new posts on our site to discover the most recent tips and tricks available.