Venmo for Church Donations? Why It’s Risky (and What to Use Instead)

Quick Summary

Venmo is convenient for splitting a dinner bill—but not for managing church donations. Using Venmo for giving can create IRS complications, messy records, and even frozen accounts. Here’s why churches should avoid Venmo and what to use instead.

Key Takeaways

• Venmo is not built for nonprofits and creates donor record + IRS issues.
• Finance admins say tracking and reporting donations was a nightmare.
• Improper use could result in tax problems or frozen accounts.
• SteepleMate provides a secure, compliant, and donor-friendly alternative.

Venmo: A Payment Tool, Not a Donation Platform

Venmo is great for quick peer-to-peer payments… but it wasn’t built for churches. Using it for donations creates risks for both your church and your donors.

The Problem with Using Venmo for Church Giving

✔️ Venmo is great for quick personal payments – splitting a dinner bill, reimbursing a friend, or paying for services.

🚫 Venmo is NOT built for nonprofit giving – and using it incorrectly could put your church at risk.

Cons of Using Venmo for Church Donations

• No CHMS Integration
• Every single donation must be manually entered into your church’s system to generate donor statements. 
• Even for “just a few” gifts, this adds up quickly—and before you know it, you may need another finance admin just to keep up.
  

Difficult Tracking for Donor Records

• Many Venmo users don’t use their real names, making it a nightmare to track who gave what. 
• Finance teams waste hours matching anonymous usernames to real donors.
  

IRS & Tax Complications

• If over $600 is received in a Venmo account, the IRS requires it to be reported as income—potentially creating issues for churches. 
• If donations are sent to a pastor’s personal Venmo, they are not tax-deductible for the giver, and the pastor may be taxed on those funds.
• Church planters beware: If you accept donations in a personal Venmo account, you cannot legally issue charitable tax receipts to donors. 
  

Potential Account Freezes & Violations

• Venmo is not designed for nonprofit fundraising. If your church violates Venmo’s policies, your account could be restricted or shut down.
• Some churches have reported funds being locked up or accounts being disabled without warning.
  

What Church Finance Admins Are Saying About Venmo

We spoke with real church finance admins who have used Venmo. Here’s what they had to say:

“We had it for two years and JUST closed it down this week! 🙌🏽 Tracking giving was a nightmare—most people don’t use their actual names. We also had trouble transferring funds and dealing with customer service.”

“Don’t use Venmo. Use a proper giving system that keeps everything above board and generates correct tax receipts. We switched to SteepleMate, and the processing fees are the lowest we’ve found (1.99%).”

“It’s hard to distinguish between gifts and payments. Venmo may assume donations are for services and issue givers a 1099, creating unnecessary tax headaches.”

What’s a Better Alternative? SteepleMate.

If you want a donation platform designed for churches, SteepleMate is the solution.

Why Churches Love SteepleMate Giving

✔️ Donor-Friendly QR Codes – Instantly generate a QR code for any contribution category (e.g., Tithes, Missions) and even pre-fill a recommended amount for quick giving.

✔️ Event & Registration Payments  – Accept payments for church events, t-shirts, books, and more with a simple online registration form.

✔️ Recurring Giving & Donor Self-Service – Donors can set up recurring gifts, track giving history, and download contribution statements anytime.

✔️ Lowest Processing Fees (1.99%) – Donors can even choose to cover the transaction fees, helping the church keep more of each donation.

✔️ Full Church Management System – SteepleMate seamlessly integrates giving with your CHMS and QuickBooks Online (certified by Intuit).

Venmo might feel like an easy option – but for churches, the risks far outweigh the convenience. With SteepleMate, you can ensure your giving process is secure, tax-compliant, and donor-friendly – leaving you free to focus on ministry, not financial headaches.

👉 Want to see how SteepleMate Giving can serve your church? Let’s chat today