CashApp for Churches? Pros and Cons
Many churches struggle to attract the donations they need to support their communities. The difficulty has become even more challenging during the COVID-19 pandemic when 65% of churches say that giving has declined. Some houses of worship have turned to CashApp so congregants can donate without coming to church in person.
CashApp makes it possible for individuals to send money digitally to anyone, including non-profits and churches. Before you decide to use CashApp, you should learn about the app’s pros and cons. You will likely discover that a different option gives you and your donors a better experience.
Advantages of CashApp for Churches
CashApp has some positive features that can help churches thrive during tough economic times. When you look at its advantages, you might think that it offers the perfect solution to digital donating.
Fairly Fast Deposits
CashApp for churches makes sense because the service usually deposits donations within one to three days. The exact amount of time depends on the donor’s bank. Some process requests faster than others. Regardless, getting money within three days sounds pretty good to most churches.
Donors can choose an instant deposit option, but you can learn more about that in the “disadvantages” section below.
Donors Can Create Accounts Easily
Anyone who can use a smartphone can set up an account on CashApp. Donors only need to enter basic information, such as their names and bank account numbers. They can start using CashApp for churches immediately.
To make it even easier for donors to create accounts, set aside some time to walk people through the process. It may also help to publish instructions on your website or in your newsletters.
Donors Don’t Need Much Information to Send You Money
Unlike some electronic donation services, your church members don’t need to know your banking information to send you money. They only need to know your church’s cell phone number.
You can reduce confusion by designating one of your church’s cell phone numbers to receive donations. Setting up one number for donations will also help encourage donor retention so you can rely on more donations in the future.
Learn how easy it is to receive money with DonorWerx.
Disadvantages of CashApp for Churches
Before you rush to sign up for CashApp for churches, spend a few minutes learning about the service’s disadvantages.
You Lose Money With Instant Deposits
Remember instant deposits? That sounds like a terrific option for churches that want to ensure donations reach their accounts on time. Unfortunately, CashApp charges 1% of the deposit balance when donors choose instant deposits.
For every $1,000 your instant donors give, you lose $10. That might not sound like much, but it adds up quickly.
Donors Spend More When They Use Credit Cards
Your church members can fund their CashApp accounts with a credit card or bank account. Those that choose credit cards will pay a 3% fee. Technically, the donor pays the 4% charge, but you know that it will come out of the person’s overall donation.
While you do your best to improve your church marketing strategies, CashApp scrapes off 3% of your donations that come from credit cards.
Try DonorWerx to pay a flat monthly fee instead of unpredictable interest payments.
CashApp Doesn’t Give You Much Support
Not sure how to encourage your congregants to donate through CashApp? That’s too bad because CashApp doesn’t offer much support for non-profits and churches that want to grow their donation bases. The company that owns CashApp seems more focused on peer-to-peer transfers and shopping.
DonorWerx Improves Your Congregation’s Donation Experience
DonorWerx improves everyone’s donation experience by:
- Charging flat, predictable fees instead of percentages.
- Teaching you how to connect with small and large donors.
- Showing you how to encourage monthly donations instead of one-time giving.
- Giving you access to online coaching that will make your fundraising more successful.
Get started today so you can get the technology and guidance that your church needs to grow its donations. With the right approach, nothing can stop your house of worship from meeting its fundraising and service goals.