The Complete Guide to Stripe Payments for Charities and Nonprofits

Stripe is the most widely used payment infrastructure for online transactions globally, processing over $1 trillion in payments annually, and it offers specific benefits for UK charities and nonprofits. This definitive guide covers everything you need to know about using Stripe for your charity, from fees and nonprofit discounts to integration options and how platforms like Plinth use Stripe Connect to deliver seamless payment experiences.

TL;DR

• Stripe charges UK charities 1.4% + 20p per transaction for European cards (2.9% + 20p for non-European cards), with nonprofit discounts available that can reduce this to approximately 1.2% + 20p.
• Charities can use Stripe directly (via Payment Links, Checkout, or API) or through platforms like Plinth that use Stripe Connect to integrate payments with booking and activity management.
• Setting up a Stripe account takes 1–2 business days for verification. Connecting to Plinth via Stripe Connect is a one-click process after that.
• Stripe is PCI DSS Level 1 compliant — the highest security standard — meaning your charity never handles sensitive card data.
• For most community organisations, using Stripe through an integrated platform like Plinth is significantly easier than building custom Stripe integrations directly.

Who this is for: Charity finance teams and digital leads considering Stripe for online payment collection.

What Is Stripe and Why Do Charities Use It?

Stripe is a payment processing platform that enables organisations to accept online payments via credit cards, debit cards, and other payment methods. Founded in 2010, Stripe now processes payments for millions of businesses and organisations worldwide, including over 10,000 registered nonprofits.

Why charities choose Stripe:

• No monthly fees: Stripe charges only per transaction — there are no monthly subscriptions, setup fees, or minimum volumes required. This pay-as-you-go model is ideal for charities with variable income.
• Instant access to funds: Stripe pays out to your bank account on a rolling basis (typically within 2–3 business days), improving cash flow compared to traditional merchant accounts that may hold funds for longer.
• Modern infrastructure: Stripe's platform is built for the internet age, with mobile-optimised checkout, Apple Pay and Google Pay support, and seamless integration capabilities.
• Trusted and secure: Stripe is PCI DSS Level 1 certified and uses machine learning to detect and prevent fraud, processing over 250 million API requests per day globally.

For UK charities, Stripe represents the most accessible and cost-effective way to accept online payments without the complexity and cost of traditional merchant account arrangements.

Stripe Fees for UK Charities

Understanding Stripe's fee structure is essential for budgeting and financial planning. Here is a detailed breakdown of what UK charities can expect to pay.

Standard Fee Structure

Nonprofit Discount Programme

Stripe operates a nonprofit discount programme that offers reduced transaction fees for registered charities. Eligible organisations can apply through Stripe's website or contact Stripe support directly.

Typical nonprofit rates:

• UK/European cards: approximately 1.2% + 20p (reduced from 1.4% + 20p)
• This represents a saving of roughly £2 per £1,000 processed
• For a charity processing £100,000 annually, this equates to approximately £200 in savings

To qualify, organisations typically need to be registered with the Charity Commission (England and Wales), OSCR (Scotland), or the Charity Commission for Northern Ireland. Stripe may request your charity registration number during the application process.

Real-World Cost Examples

These figures assume an average transaction value of £100 with UK-issued cards. Actual fees will vary based on your transaction mix and average payment size.

How Stripe Connect Works (And Why It Matters for Charities)

Stripe Connect is a feature that allows platforms like Plinth to facilitate payments on behalf of connected organisations. This is distinct from using Stripe directly and offers significant advantages for charities.

Direct Stripe vs Stripe Connect via Plinth

How Plinth Uses Stripe Connect

When you connect your Stripe account to Plinth, the following happens:

1. One-click connection: From your Plinth dashboard, click "Connect Stripe" and follow the OAuth flow to authorise Plinth to process payments on your behalf.
2. Payment collection: When someone books an activity, event, or room through your Plinth-powered pages, payment is collected via Stripe and deposited directly into your connected Stripe account.
3. Automatic reconciliation: Every payment is automatically linked to the corresponding booking record in Plinth, eliminating the need for manual matching.
4. Your money, your control: Plinth never holds your funds. Payments go directly to your Stripe account and are paid out to your bank on Stripe's standard schedule.

According to research from the Charity Finance Group, finance staff at small charities spend an average of 6–10 hours per week on payment reconciliation. Stripe Connect via Plinth eliminates this task entirely for booking-related payments.

Setting Up Stripe for Your Charity

Step 1: Create a Stripe Account

Visit stripe.com and click "Start now." You will need:

• Your charity's legal name and registration number
• A UK bank account for receiving payouts
• Contact details for a responsible person (typically a trustee or senior staff member)
• Your organisation's website address
• A brief description of what payments you will be collecting

Verification typically takes 1–2 business days. Stripe may request additional documentation such as proof of charity registration or identification for the responsible person.

Step 2: Apply for Nonprofit Discount (Optional)

Once your account is active, contact Stripe support or visit their nonprofit programme page to request discounted rates. Have your charity registration number ready. Approval typically takes 5–10 business days.

Step 3: Choose Your Integration Method

Option A — Connect to Plinth (Recommended for community organisations): Log into your Plinth dashboard, navigate to Settings > Payments, and click "Connect Stripe Account." Follow the prompts to authorise the connection. You can start accepting payments immediately once connected.

Option B — Use Stripe Payment Links: Create simple payment links from your Stripe Dashboard that you can share via email, social media, or embed on your website. No coding required, but no booking integration.

Option C — Use Stripe Checkout: Embed pre-built payment pages on your website. Requires some technical knowledge or a web developer.

Option D — Build with the Stripe API: Maximum flexibility but requires significant developer resources. Only recommended for charities with dedicated technical staff or budget for development.

Step 4: Configure Payment Settings

Regardless of your integration method, configure these important settings in your Stripe Dashboard:

• Payout schedule: Choose daily, weekly, or monthly payouts to your bank account. Weekly payouts on Mondays are popular with charities as they align with standard accounting periods.
• Email receipts: Enable automatic email receipts so payers receive confirmation immediately.
• Statement descriptor: Set this to your charity name so payers recognise the charge on their bank statement and do not raise disputes.
• Fraud prevention: Review Stripe Radar settings — the default rules work well for most charities, but you can customise sensitivity levels.

Stripe Security and Compliance

Security is a critical concern for any organisation handling payments, and Stripe provides enterprise-grade protection that exceeds what most charities could implement independently.

PCI DSS Compliance

Stripe is certified to PCI DSS Level 1, the highest level of certification in the payment card industry. This means:

• Your charity never sees or stores card numbers, CVVs, or other sensitive payment data
• All data is encrypted in transit and at rest
• Stripe undergoes regular independent security audits
• Your PCI compliance burden is dramatically reduced compared to handling card data yourself

According to IBM's Cost of a Data Breach Report 2024, data breaches cost organisations an average of $4.88 million globally. By using Stripe, charities effectively outsource this risk to a platform purpose-built for payment security.

3D Secure and Strong Customer Authentication (SCA)

Stripe automatically handles Strong Customer Authentication requirements under PSD2 regulations, which apply to European card payments. This means:

• Payments are automatically routed through 3D Secure when required
• Legitimate payments are approved with minimal friction
• Fraudulent transactions are blocked before they incur costs

Data Protection

Stripe processes data in compliance with UK GDPR and has appropriate data processing agreements in place. When used through Plinth, your charity benefits from both Plinth's and Stripe's data protection measures.

Common Stripe Features Charities Use

Payment Links

The simplest way to start accepting payments. Create a link in your Stripe Dashboard, set a price (or let payers choose an amount), and share it anywhere. Useful for:

• One-off donations
• Event ticket sales (without booking management)
• Membership payments

Stripe Checkout

A pre-built, optimised payment page that can be embedded on your website. Supports:

• Card payments (Visa, Mastercard, Amex)
• Apple Pay and Google Pay
• Multiple currencies
• Custom branding with your charity's logo and colours

Stripe Billing

For recurring payments and subscriptions. Useful for:

• Monthly membership fees
• Regular giving programmes
• Subscription services

Stripe Billing automatically handles failed payment retries, proration for mid-cycle changes, and sends payment reminder emails. Industry research indicates that regular giving retention rates improve by 15–20% when using automated payment retry systems.

Stripe Radar (Fraud Prevention)

Stripe's machine learning-based fraud prevention system is included free with every account. It:

• Analyses hundreds of signals per transaction to identify fraud
• Blocks suspicious payments before they are processed
• Reduces chargebacks and dispute fees
• Can be customised with rules specific to your risk profile

Stripe vs Other Payment Gateways for Charities

Stripe offers the best combination of low fees, fast setup, and integration capabilities for UK charities. Its partnership with platforms like Plinth makes it especially powerful for community organisations.

Frequently Asked Questions

Do charities pay VAT on Stripe fees?

Yes. Stripe's transaction fees are subject to VAT at the standard rate (currently 20%). This means a 1.4% + 20p fee effectively costs 1.68% + 24p inclusive of VAT. Most charities cannot reclaim this VAT unless they are VAT-registered for other reasons. This is worth factoring into your financial planning — on £100,000 of transactions, VAT on Stripe fees adds approximately £320 to your costs.

Can we use Stripe for Gift Aid donations?

Stripe itself does not process Gift Aid claims — it is a payment processor, not a fundraising platform. However, when used through Plinth or other charity platforms, Gift Aid declarations can be collected alongside payments and processed separately through HMRC's Gift Aid service. For dedicated donation processing with Gift Aid, consider pairing Stripe with a platform that handles Gift Aid claims.

What happens if someone requests a refund?

You can issue full or partial refunds through your Stripe Dashboard or through Plinth's admin interface. Stripe processes refunds within 5–10 business days. Note that Stripe does not refund its original processing fee when you issue a refund — so a refunded £100 payment still costs your charity approximately £1.60 in fees.

Is Stripe suitable for large charities with complex needs?

Yes. Stripe scales from single-person organisations to enterprises processing billions. Large charities benefit from Stripe's custom pricing (negotiable for high volumes), advanced reporting, and enterprise support options. Organisations processing over £1 million annually should contact Stripe directly to discuss custom rates.

Can we accept international donations through Stripe?

Yes. Stripe supports 135+ currencies and automatically handles currency conversion. International card fees are higher (2.9% + 20p) but this is competitive with other international payment options. For charities receiving significant overseas donations, Stripe's multi-currency support is a significant advantage.

How does Stripe handle failed payments?

For one-off payments, if a card is declined the payer is immediately notified and asked to try again or use a different payment method. For recurring payments via Stripe Billing, failed payments are automatically retried on a configurable schedule (typically 3 retries over 7 days). This automatic retry system recovers an estimated 15–20% of initially failed payments.

Conclusion

Stripe is the most capable and cost-effective payment processing platform available to UK charities. Its combination of low fees, nonprofit discounts, enterprise-grade security, and exceptional integration capabilities makes it the natural choice for organisations of all sizes.

For community organisations running activities, events, and room hire, the most effective way to use Stripe is through Plinth's Stripe Connect integration, which eliminates the need for technical expertise while providing automatic payment reconciliation with your bookings.

Ready to start accepting payments? Book a demo of Plinth to see how Stripe Connect integration can simplify your payment processing and operations.

Recommended Next Pages

• Best Payment Solutions for Charities – Compare Plinth, Stripe, GoCardless, SumUp, and other payment platforms for UK charities.

• Online Payments vs Cash Collection for Charities – Understand when digital payments make sense and when cash still has a role.

• How to Take Payments for Activities, Events and Room Hire – A step-by-step guide to collecting payments for your organisation's services.

• Payment Reconciliation for Charities – How automatic reconciliation saves hours of administrative work every week.

• Plinth Payments Features – Explore Plinth's integrated payment processing in detail.

Last updated: February 2026

For more information about Stripe payments for your charity, contact our team or schedule a demo.