For decades, nonprofit funding models have relied heavily on government grants and philanthropy—but that landscape is evolving fast.

As public funding becomes increasingly volatile, organizations are exposed to freezes and cuts that put their missions at risk. Instead of depending solely on unpredictable funding cycles, leading nonprofits are building new revenue engines through ecommerce—combining donations, merchandise, and memberships into unified, scalable revenue streams. This approach gives organizations more control and predictable cash flow.

Ahead, you’ll learn how to get started with ecommerce for nonprofits and how a unified commerce strategy helps organizations diversify revenue and fund their mission on their own terms. 

What is ecommerce for nonprofits?

Beyond donations: The evolution of nonprofit revenue models

Private philanthropy hit a record $592.5 billion in the US in 2024, as per Giving USA’s annual report on philanthropy. It’s a massive figure, but it’s not the whole story.

For most nonprofits, the real financial drivers have always been earned income, like program service fees, and government funding. But that mix is changing. As government funding—worth $267 billion in grants in 2021—becomes less predictable, many organizations are pivoting toward self-sustaining, mission-aligned revenue.

Modern nonprofits are evolving into social enterprises that pair their fundraising efforts with ecommerce channels—selling branded merchandise, memberships, and experiences that support their cause. 

A resilient ecommerce presence can drive independent revenue and make you less reliant on external funding. Ecommerce transforms nonprofits from reactive fundraisers into sustainable social enterprises that fund their missions on their own terms.

The billion-dollar digital giving opportunity

Nonprofit organizations are diversifying their revenue streams online. One 2025 benchmark found that online revenue for the average nonprofit grew 2% in 2024. The real story, however, is the shift to predictable cash flow—monthly recurring revenue jumped 5% year over year and now makes up 31% of all online revenue. 

Blackbaud’s 2024 data agrees, showing online giving has hit a new post-pandemic peak. But there’s a major disconnect:mobile drives 53% of all traffic, but desktops bring in 70% of the revenue.

The data found that the average desktop gift is $145 and the average on mobile is just $76. The fix could be eliminating checkout friction with digital wallets. 

Yet, while 76% of nonprofits offer PayPal, only 47% offer Apple Pay and 40% offer Google Pay. This is a gap nonprofits can close, especially when donors prefer using a wallet over a credit card. 

And not all wallets are created equal. Shop Pay bridges that mobile gap—its unified checkout converts up to 50% higher than guest checkout and at least 10% higher than other accelerated wallets in same-store tests.

Key benefits of nonprofit ecommerce in 2026

Revenue diversification beyond traditional fundraising

As noted, relying solely on external grants or donations is no longer enough to sustain long-term impact. 

An earned revenue stream from merchandise, event tickets, and even paid content is a good hedge against risk. It’s a revenue source controlled by you, not a piece of legislature. 

Reaching massive digital audiences

Your ecommerce store can become the main driver of customer acquisition. Every t-shirt or membership sold is a new supporter for your email list, which increased in size by 3% on average for nonprofits in 2024. For every 1,000 fundraising emails sent in 2024, nonprofits raised $58. 

If you focus on improving the mobile experience for those 53% of mobile users with wallets like Shop Pay, you convert more of those browsers into long-term supporters.

Building financially stable social enterprises

Ecommerce turns funding from a sporadic, hope-based model to a predictable operation. Donors are already on board—the average one-time gift per donor in 2024 eclipsed $179. 

Sustainable cash flow lets you plan for the longer term and focus on your mission, rather than the next grant cycle. 

Overcoming nonprofit ecommerce challenges

Improving digital revenue doesn’t come without its own challenges. Here’s how to think about the top three. 

The imperative of total cost of ownership (TCO)

For 63% of nonprofits, budget constraints are the number one barrier to investing in new technology. It’s the top challenge, period. But it’s far from the only problem.

Nonprofit leaders are also overwhelmed by the sheer number of tech solutions (reported by 20%) and struggle to compare them (19%). That complexity leads to paralysis—or worse, a fragile over-stacked set of tools that costs a fortune to maintain.

A 2024 Shopify-commissioned study found that Shopify’s TCO is 29% better than Adobe’s and 35% better than Salesforce’s. Predictable costs and operational efficiencies mean more budget and staff time go toward your programs, not platform maintenance.

Addressing labor shortages and digital skills gaps

The second barrier is capacity. Fifty-four percent of nonprofits report insufficient staff to assemble a complete view of their donors. 

Budget constraints also mean they can’t hire their way out of the problem, and 34% say their current staff need more training. The crunch is so real that 53% didn’t even attempt to use AI tools in 2023.

That’s why your enterprise ecommerce platform has to do the heavy lifting for you. A platform that’s faster to implement and leaner to run actually gives your team time back. For example, instead of relying on custom-coded checkouts, a platform like Shopify lets you make those same powerful customizations using a simple drag-and-drop editor.

Engaging the next generation of donors

Even with the right tech, you still need to find new supporters. In 2024, donor acquisition is the top challenge for 47% nonprofit leaders.

The data shows exactly where the opportunity is—on mobile. Chances are, you’re already getting the traffic, but you’re losing the conversion to a clunky experience. Shopify’s themes come fully optimized for mobile devices with checkout options to meet every type of donor preference. 

Your next generation of donors is also on social media. A 2024 GoFundMe survey found that 41% of Gen Z say social media content motivated them to research or donate. Pair social discovery with a wallet-based, one-tap checkout and you’re positioned to drive more donations.

Unifying data and providing seamless checkout experiences create consistent donor journeys—both online and offline.

Choosing the right nonprofit ecommerce platform

Essential features for enterprise nonprofit commerce

The top feature to look for is a smooth checkout process. Donors want to read the mission, browse your pages, and donate. Accelerated checkout options like Shop Pay can add a 5% lift to lower funnel conversion rates. 

Another feature to prioritize is native subscriptions. With monthly giving making up such a large share of online revenue, your subscription tooling and your merchandise sales should live on the same platform.

With Shopify Subscriptions, you can manage recurring donation tiers right in your Shopify admin, while donors get their own account to pause or skip. Running donation tiers, memberships, and merch on the same stack simplifies everything—from accounting to reporting, tax, and inventory. 

When it’s time to show your board or donors measurable results, data and storytelling go hand in hand. A native analytics dashboard with real-time insights lets your team build rich stories for grantees and program updates. 

With Shopify Analytics, you can pull built-in sales, marketing, and customer reports to get board-ready updates that tie your narrative to first-party data. No extra content management system or business intelligence tooling license required.

In short, a unified platform simplifies operations, donor management, and storytelling—all in one place.

Platform comparison: Shopify vs. traditional nonprofit solutions

Donors today expect the same seamless checkout they experience across modern ecommerce sites. They want a simple, secure checkout for everything they do online, including when they donate.

Modern commerce platforms also extend your reach. Shopify has sales channel integrations for Facebook, Instagram, and Google/YouTube, with product catalogs that sync right from your admin. This means your products and campaigns appear natively in social feeds, helping you capture new donors and supporters where they already spend time. 

If you use an enterprise resource planning (ERP) platform, Shopify has native connectors to leading options like Microsoft Dynamics, NetSuite, and even customer relationship management tools (CRMs) like HubSpot. 

Total cost of ownership considerations

When every dollar has to advance the mission, TCO is the only metric that counts. Fewer hours spent on platform maintenance and integration means more budget and staff time allocated to your programs.

A 2024 Shopify-commissioned study found that Shopify’s TCO is, on average, 33% better than competitors (up to 36%). 

That advantage is spread across the entire lifecycle:

• Implementation: 33%
• Platform fees/stack: 23%
• Operations: 19%

The study highlights how missing native features on other platforms drive up costs. Compared to Shopify, Adobe’s platform fees and stack were found to be 42% higher, while Salesforce’s implementation was 16% higher. A unified commerce platform with more native features simply costs less to build, run, and adapt—allowing more funds to be redirected toward your mission.

Legal and compliance requirements for nonprofit ecommerce

Understanding UBIT and tax implications

Not all revenue a nonprofit generates is tax-exempt. Income is considered Unrelated Business Income Tax (UBIT) if it meets three criteria: 

• It’s from a trade or business.
• It’s regularly carried on.
• It’s not substantially related to the organization’s exempt purpose. 

This applies to all organizations exempt under §501(a), including 501(c)(3)s. Before assuming income is taxable, check the exceptions. The IRS excludes dividends, interest, royalties, certain rents, and gains on property sales from UBI calculations.

A common pitfall is advertising. A Qualified Sponsorship Payment (QSP), where a donor receives no substantial return benefit, is not UBIT. But if you provide exclusive provider benefits or other services in return, that payment could become taxable income under §§512–514. 

When you do have UBIT, you must report it on Form 990-T.

For specific legal or tax advice on UBIT, consult legal counsel or a qualified tax professional specializing in exempt organizations. Understanding tax rules ensures your revenue strategy doesn’t jeopardize your exempt status.

State-by-state compliance guidelines

Don’t assume your 501(c)(3) status grants a blanket sales tax exemption for your merchandise. 

Some states have their own regulations—California, for example, offers no broad sales-tax exemption for nonprofits and has narrow, specific rules for nonprofit qualification. Check your nexus and product taxability rules in every state you sell.

A modern commerce platform centralizes this. Shopify Tax maintains default US rates and supports the product categories, overrides, and customer exemptions you need as your state footprint grows.

Maintaining 501(c)(3) status while selling online

An operational test governs your ability to sell online. The IRS needs to know your organization is operating exclusively for exempt purposes, with no private inurement.

Running an unrelated business is permitted, but it cannot become a substantial part of your organization’s activity. Filing a 990-T for UBIT is standard procedure; staying compliant protects your 501(c)(3) status.

Building a successful nonprofit online store

Now that you understand the compliance essentials, it’s time to bring your mission to market.

Product strategy for mission-driven organizations

Your ecommerce channel can easily become a revenue powerhouse. Proven models like the Girl Scouts’ cookie program and Habitat for Humanity’s ReStores show how retail operations can fund an organization. 

For example, Habitat for Humanity ReStores demonstrate how mission-aligned retail can create sustainable funding. Many ReStores now generate over $1 million annually. One chapter reported $1.2 million in total sales after expanding their operations and POS.

Channel diversification is key to this success. The Girl Scouts of Oregon/SW Washington, for example, sold approximately 2.1 million boxes of cookies, and 29% of those sales came from online channels—proof that digital channels can drive real-world impact.

A unified platform can manage retail and ecommerce channels for you. You can run a physical store with Shopify POS and have it sync inventory, payments, and reporting with your online shop.

Pricing models that balance revenue and accessibility

The money you earn online is what pays for your staff, keeps the lights on, and funds your programs. A smart pricing strategy can help keep your products fair-priced and revenue flowing into your bank account. 

A “Good/Better/Best” ladder is a straightforward option. Say you’re running a museum, you could offer various membership tiers:

• Good: The standard product, or individual tier. It’s for the person who just wants to support the mission or get basic access for themselves.
• Better: A mission bundle that adds a fixed donation or bonus item, like a family tier. A member can easily see the value: “For $75 more, I can bring my kids all year.”
• Best: An access tier for members or beneficiaries, like a Patron tier. This is for the supporter who wants to be an insider and is willing to pay more for that recognition and access.

The ladder lets you capture revenue from all customer segments. You don’t lose the iIndividual by only offering a $250 family pass, and you don’t leave money on the table by only offering a $75 individual pass to someone who would have paid $250.

For higher-ticket items, buy now, pay later (BNPL) payment options can give more customers access to your products or services. Shop Pay Installments lets supporters spread payments over time and protect your cash flow. 

Integrating donations with merchandise sales

Checkout is where the money is made. The idea is to blend commerce and giving seamlessly, as more donation spending takes place online. But you have to be careful where you ask. 

Data from 2024 shows that revenue from Facebook Fundraisers was just 0.2% of all online revenue and declined 42% year over year. Social media is a tool for reach and discovery, but the transaction itself must be routed to your own platform.

To add donation options directly to checkout, many organizations use donation apps available in the Shopify App Store, such as Zestard. These tools integrate with Shopify Checkout, Shopify POS, and Online Store 2.0 Themes.

They let you add donation widgets to the cart or checkout, create dedicated donation landing pages, and send automated receipts—all within your ecommerce workflow. 

Unified commerce strategies for enterprise nonprofits

Unified commerce brings every donor touchpoint—online, offline, and in person—onto one connected platform. This is where ecommerce for nonprofits shifts from managing sales to building sustainable relationships.

Connecting online and offline experiences

Your in-person activations, whether they’re events, popups, or field programs, are where you grab donors’ interests. The strategy is to capture email addresses at these events, unify that profile with online activity, and increase future remarketing and retention.

A single system for customer data and orders is what stops channel conflicts and makes reconciliation simple. After enabling email capture at checkout in Shopify POS, the Little Words Project saw in-store email capture rates jump by an average of 20%, and up to 95% in some locations. The change led to 21% more POS orders captured with an email, and 33% more with both an email and a marketing opt-in.

At events or popup shops, Shopify POS connects seamlessly with your online store—so donor data, purchase history, and communication preferences all sync in real time. This consistency across channels is what unified commerce and omnichannel retail strategies make possible.

Data-driven donor engagement across channels

Sending the same generic message to thousands of supporters doesn’t work anymore. A unified platform lets you speak to them as individuals, even when advertising or sending marketing messages.

Shopify has built-in tools to help improve engagement:

• Find new supporters: Shopify Audiences improves ad efficiency. It generates high-intent prospect lists for major platforms and suppresses more of your existing customers to cut wasted spend.
• Engage your base: Customer segments are created right in the Admin. Use them to send relevant messaging in your owned channels like email and SMS.

• Prove impact: Using the Segmentation editor or ShopifyQL queries inside your reports, you can run fast cohort analysis to measure impact and refine your messaging.

Unified data lets you turn every interaction into a measurable outcome.

Subscription models and recurring revenue

Recurring revenue is what will drive your organization forward. With predictable funding, you can confidently plan budgets and focus resources on the long-term mission—and it all starts with subscription commerce models built for nonprofits. 

As of fall 2024, 44% of online donors were already enrolled in a monthly giving program. Operationally, this is the stable base, representing 20%–40% of typical monthly donation volume. Such a high adoption rate means subscriptions are treated as a core offering.

With Shopify Subscriptions, you can build out those weekly, monthly, or annual donation tiers. There are also over 100 subscription apps in the Shopify App Store you can use to turn browsers into ongoing supporters. 

Pairing Shop Pay with the recurring flow provides one-tap checkout to lift completion rates. Then, use your Customer segments to scale:

• Send a monthly offer to non-recurring supporters.
• Run winback campaigns for lapsed donors.
• Deploy upgrade nudges to your most loyal givers.

For example, the veteran-owned Fire Dept. Coffee upgraded to Shopify to scale their operations. By focusing on their booming subscription business, the company grew their total revenue 400%, with subscriptions now accounting for 25% of all revenue. This model provides a predictable cash flow that nonprofits can use to fund their missions.

“Shopify fit us when we had just one product. Shopify fits us now as a $10 million business with multiple product lines. And it will fit us as a $100 or $200 million business. That’s the beauty of it—there’s nothing we can’t do with Shopify,” says Luke Schneider, founder and CEO of Fire Dept. Coffee. 

Pura Vida Bracelets—a certified B Corporation operating on a social enterprise model—also leverages Shopify subscriptions to deliver consistent, predictable income while supporting artisans globally. The brand achieved 50% year-over-year growth, a 4x increase in email revenue, and a 10% lift in social media revenue.

Recurring and omnichannel strategies like these create financial predictability, strengthen donor loyalty, and give nonprofits control over their long-term mission funding.

Marketing your nonprofit ecommerce store

Social commerce for cause-driven brands

Social media is where your supporters live, but it’s not where they are making donations. However, organizations are investing in Facebook, Instagram, TikTok, and even LinkedIn to market and grow their supporter base. 

In fact, data shows that 52% of organizations are already working with influencers. TikTok also had the fastest-growing audiences in 2024, with average follower counts increasing by 37%. 

Some strategies you can try on social include:

• On YouTube: Connect your catalog via the Google & YouTube channel. You can then tag your evergreen impact videos with relevant merch and pin products in live chats during fundraising events.
• On Meta (Facebook/Instagram): Now that checkout routes to your site, use product tags in your posts, but make your primary call to action the “link in bio,” or make a story link straight to your donation or bundle page.
• On TikTok: Follow St. Jude’s playbook. The pediatric treatment and research center publishes a clear creator brief, uses the native donation sticker/link to capture intent, and then stitches the best creator content weekly. The organization works with influencers like Gary Vee to spread the message and attract donations. 

Email marketing and donor segmentation

Email is still a workhorse for digital fundraising efforts. Nonprofits sent an average of 62 email messages per subscriber in 2024—a 9% increase in volume from the previous year, led by a 14% increase in engagement messaging.

But it’s getting harder to reach folks via email. Inboxes are crowded, and donation page completion rates fell to just 12%, a 13% decrease year over year. More precise targeting helps your message get read in a crowded inbox.

With Shopify, you can easily create specific groups of supporters right in your dashboard. Start with three high-value segments:

• Merch-only buyers: Target them with an appeal to “add a monthly $10 donation to your order” option.
• One-time donors (within 90–365 days): Send a monthly upgrade offer featuring social proof.
• Lapsed monthly givers: Create a specific winback campaign focused on new impact data.

Use your social channels and creator collabs to grow this list. Offer a lead magnet, like an impact guide, then nurture those new leads with a three-email “Why donate monthly?” series. You can track the lift from every campaign using Shopify’s marketing reports.

Measuring ROI and mission impact

You can’t prove your impact if your revenue data is in one silo and your mission data is in another. The goal is a single, real-time view of both; unified analytics show how every sale, donation, and subscription advances your mission goals.

Shopify’s analytics and the ShopifyQL editor are built for this. Create a monthly “Impact & Revenue” dashboard, which can include:

• Donor vs. merch revenue (the split in orders and dollars)
• Monthly subscription enrollment and churn
• Donation page completion rates
• Social-sourced sessions and sales

You can build this entire dashboard using ShopifyQL Notebooks to query cohorts (like “supporters acquired on YouTube vs. Instagram”) without waiting on another team or paying for an external business intelligence tool.

Scaling nonprofit ecommerce operations

Automation and efficiency tools

As digital revenue grows, your operation will scale with it and you’ll want to start automating tasks. A good commerce platform will have a no-code automation tool that triggers workflows from events like an order being paid, a subscription failing, or a supporter joining a new segment. 

With Shopify, for example, you can get time back with various automations:

• Automate order tagging: When an order with a donation product is created, Shopify Flowcan instantly tag the donor, email finance, and append a program code.
• Handle lifecycle events: When a customer joins your first-time donor segment, Flow can trigger a welcome email sequence that promotes your monthly or yearly donation options.
• Reduce finance workload: Using a donation app like Give & Grow by Pledge automates the processing and delivery of tax receipts, removing a massive end-of-year headache.

These automations give lean teams more time to focus on impact, not admin.

Quick deployment and implementation

Your staff has good ideas that need to be implemented quickly. You can’t afford a multi-month implementation period for adding a donation feature or getting a new site live. 

Brands that move to Shopify report faster site launches at lower costs. A 2024 independent consulting study confirmed Shopify has meaningfully lower implementation and operations cost components versus major platforms.

You get to market faster by phasing your launch. Go live with your core catalog, donations, and Shop Pay first to capture immediate conversion lift. Roll out subscriptions and bundles in sprint two. 

For field events, use the POS launch checklist to stand up a popup in days, running on the same centralized product, inventory, and order system as your online store.

The Conran Shop, a global retailer, achieved similar operational gains—cutting their total cost of ownership in half and reducing platform maintenance after switching to Shopify.

This article originally appeared on Shopify and is available here for further discovery.