You’ve finally opened your nonprofit to a global donor base. After months of outreach, platform development, grant applications, and building awareness campaigns, you’re ready to accept donations from anywhere in the world.

But here’s the reality: 97% of nonprofits operate with annual budgets under $5 million, 92% manage on less than $1 million, and 88% function with under $500,000 a year. With resources this tight and hard to get, even a small disruption like a flagged donation for compliance, a chargeback from a donor, or an unexpected regulatory notice demanding local tax filings can quickly drain time, money, and energy meant for your mission.

Why is global fundraising so risky for nonprofits and charities? What makes cross-border donations operationally tricky and financially vulnerable? And how do you protect your organization from all the backend issues that threaten your mission?

These are questions nonprofits must answer before scaling their reach. Beneath the excitement of global giving lies a complicated world of regulations, risks, and roadblocks.

The hidden risk of global expansion for Nonprofits

Expanding your fundraising across borders means more donors, more impact, and more funding for your mission. But it also opens the door to:

• Tax laws and donation rules that vary by country

• Currency conversion losses and complex payouts

• Local financial reporting and donor transparency requirements

• Chargebacks and fraud from suspicious transactions

• Limited access to local payment methods

• Foreign bank accounts and compliance barriers

Without the right infrastructure, your team is stuck managing administrative overload, from issuing local-compliant receipts to resolving transaction disputes instead of focusing on mission delivery and community impact.

Why fundraising is operationally complex

Fundraising isn’t just about raising money. It’s about maintaining trust, transparency, and operational integrity. Especially when going global, here are four reasons nonprofits are exposed to significant backend risk:

1. Tax & donation compliance vary everywhere

Different countries treat charitable donations differently. In some, you need to be locally registered to accept funds or issue valid donation receipts. Missteps can put your nonprofit’s credibility and compliance at risk.

2. Chargebacks hurt more

Unlike businesses, nonprofits don’t just lose revenue to fraud — they risk donor trust and platform suspensions. From double donations to suspicious activity, these issues are often hard to track and solve without financial infrastructure.

3. Donors want local payment options

From bank transfers in Ghana to M-Pesa in Kenya and card payments in the UK, donors want to give in ways they trust. If you don’t support local methods, donations get abandoned, and the impact suffers.

4. Regulatory pressure on transparency

Nonprofits are under more scrutiny for how they manage and report funds. Local compliance often requires proper documentation, real-time reporting, and financial clarity, which is hard to do across multiple currencies and jurisdictions.

For nonprofits and charities, managing donations across different countries can be inspiring, but also overwhelming. From tax obligations and currency conversions to local compliance, the back office can quickly become a burden. That’s where a Merchant of Record (MoR) comes in.

The MoR model, built to remove these barriers

A Merchant of Record (MoR) is a third-party entity that becomes the official seller (or recipient) on paper. For nonprofits, this means the MoR collects donations, handles payment processing, manages compliance, and reduces operational friction, while your team focuses on impact.

Here’s what MoRs do for you:

• Handle tax registration, collection, and remittance

• Manage fraud detection and chargebacks

• Offer local and international payment options

• Issue compliant receipts and reports

• Support multi-currency settlements

You stay in control of your programs, donors, and campaigns, but the MoR manages the financial and regulatory infrastructure so you don’t have to.

Why Nonprofits and Charities Need MoR Support

For organizations scaling across Africa or raising funds globally, the MoR model offers peace of mind and operational clarity.

1. You stay compliant across borders

Each country has its own rules for receiving and processing funds. MoR platforms stay on top of ever-changing local tax laws, data protection regulations, and payment policies, shielding your organization from costly penalties. MoRs are already registered in multiple countries, helping you navigate VAT, donor transparency laws, and reporting obligations effortlessly.

2. You reduce fraud and chargeback risks

MoRs take on the liability for chargebacks and fraud disputes. MoRs use advanced fraud tools and settle chargebacks. That means fewer donor disputes and cleaner financials.

3. You offer donors more giving options

From mobile wallets to bank cards and local channels, MoRs increase successful donations by meeting donors where they are. Donors can give in their local currencies while you get settlements in your preferred one. The MoR handles currency conversion and local payout systems without the accounting chaos.

4. You get to focus on impact and protect your team’s time

When you partner with an MoR, you offload the operational complexity. That means less time dealing with backend compliance, and your team focuses more on building programs, engaging communities, and driving change.

5. Streamlined donor experience

A smooth, localized checkout process boosts trust and completion rates. MoRs optimize the donation journey, reducing drop-offs and improving your global reach.

MoR in Action: A Real-World Scenario

Imagine you’re a nonprofit based in Ghana, expanding your donor base to Nigeria, the UK, and Kenya. Without an MoR, you’d need:

• Multiple local registrations

• Tax filings in each country

• Local bank accounts

• A team managing financial reporting and fraud

With a Merchant of Record like Startbutton, you can:

• Accept donations in 15 African markets with no extra setup

• Collect and settle in local or foreign currencies

• Get auto-compliant receipts and tax support

• Let donors pay how they want

• Stay audit-ready with clean financial records

Why Startbutton is built for Nonprofits

At Startbutton, we’ve tailored our Merchant of Record solution to meet the specific needs of nonprofits, charities, and global changemakers.

We help you:

• Stay compliant

• Accept payments across Africa

• Manage fraud and chargebacks

• Issue donation receipts and reports

• Focus on impact, not paperwork

Ready to scale your nonprofit with less risk and more impact?

Let’s help you unlock donation growth across Africa and beyond.
Reach us at sales@startbutton.africa or visit startbutton.africa to get started.