Focusing on Venmo, Daniel Grunstein, the CEO at Crowded, a platform that specializes in helping nonprofits manage their finances and simplify complex financial processes for volunteers and small NPO’s, joins the cohosts to discuss the use of digital payment systems within the nonprofit sector.

The conversation digs deep into the challenges and risks associated with using Venmo for nonprofit activities. Daniel emphasizes that while Venmo is designed for casual peer-to-peer payments, it is increasingly being used by nonprofits, which can lead to compliance issues, operational headaches, and donor data tracking challenges. Daniel offers “Nonprofit treasuries have to deal with a wide array of financial processes for what is typically a volunteer position. They often spend money on administration and consulting, which could be streamlined into a user-friendly digital experience to benefit grassroots nonprofits.”

One significant risk discussed is the lack of integration and centralization of donor data, making it difficult for nonprofits to maintain compliance and track donations effectively. Daniel suggests that smaller nonprofits should consider end-to-end solutions like Crowded to streamline their financial operations.

The lively chat also touches on how younger demographics are more inclined to use Venmo for fundraising efforts and that it’s prevalent in ad hoc fundraising environments such as bake sales or raffle sales.

Watch and learn the importance of proper financial management tools for nonprofits, especially as they navigate the complexities of digital payment systems like Venmo, and the need to centralize and track donor data for compliance and efficiency.