Bank of America and Zelle have launched a pilot initiative aimed at accelerating the delivery of charitable donations to nonprofit organizations by using instant payment technology. The initiative explores how real-time digital transfers can replace slower, traditional disbursement methods often used in philanthropy.
Announced in March 2026, the project introduces a new use case for the Zelle network: distributing charitable grants from donor-advised funds (DAFs). The capability is being tested through the bank’s charitable giving program, the Charitable Gift Fund, allowing selected nonprofit organizations to receive donations in near real time.
Donor-advised funds are accounts designed for philanthropic giving that allow individuals or institutions to contribute assets and recommend grants to charities over time. Historically, payments from these funds to nonprofits have often been processed through checks or automated clearing house (ACH) transfers, which can take days or even weeks to complete.
The new pilot aims to shorten this process by enabling grants to be sent digitally via Zelle, allowing organizations to receive funds almost immediately once they are approved. According to the companies, the approach could be particularly valuable when nonprofits need rapid access to funding during emergencies such as natural disasters or local crises.
“For nonprofits, deploying their resources quickly and effectively matters – whether responding to community needs or scaling vital services,” said Donald Greene, Donor-advised Fund Executive, Bank of America Private Bank. “By partnering with Zelle to develop this innovation, we’re giving both donors and nonprofits a more modern and responsive way to take in and make use of charitable contributions. This advancement strengthens our clients’ ability to support the causes they care about and accelerates the impact of nonprofits.”
The pilot currently involves a limited group of participating nonprofits and financial institutions. If successful, the model could expand to other donor-advised fund providers or banks that operate philanthropic programs. The initiative also reflects broader efforts by payment networks to extend instant payment capabilities beyond person-to-person transfers into new sectors such as government disbursements, business payments, and charitable giving.
The move comes as digital payments continue to scale rapidly in the United States. Zelle users collectively send more than $1.2 trillion annually across the network, highlighting the growing adoption of real-time payment infrastructure. At the same time, Bank of America’s Charitable Gift Fund distributed more than 100,000 grants totaling about $1.3 billion in 2025 alone, underscoring the significant volume of philanthropic transactions that could potentially benefit from faster settlement.
Financial institutions and fintech companies increasingly view philanthropy as an area where modern payment technologies can improve efficiency, transparency, and accessibility for donors and nonprofit organizations alike.
Other Fintech Solutions Enabling Digital Charity Donations
Beyond traditional bank initiatives, a growing number of fintech platforms are helping simplify charitable giving through different technological approaches.
1. Digital giving marketplaces
Platforms such as HasanaH connect donors with vetted social impact projects across sectors including healthcare, education, and food security. These platforms act as marketplaces where donors can directly fund campaigns or start their own fundraising initiatives, with projects reviewed for impact and urgency.
2. Crowdfunding for social causes
Online fundraising platforms like Fundly enable nonprofits, community groups, and individuals to raise money for charitable initiatives through social networks and digital campaigns. Donors can contribute through online payment gateways and share campaigns across social media to broaden reach.
3. Recurring donation platforms
Services such as LiberaPay focus on recurring donations, allowing supporters to fund creators, open-source projects, and community initiatives on an ongoing basis. These platforms aim to provide sustainable funding models rather than one-time fundraising campaigns.
4. Micro-donation and round-up apps
Several fintech apps enable micro-donations by rounding up small amounts from everyday transactions and allocating them to charitable organizations. These tools lower the barrier to participation, allowing users to contribute gradually without making large one-time payments.
5. Blockchain-based transparency tools
Emerging Web3 solutions use blockchain technology and smart contracts to track charitable funds in real time, creating tamper-resistant ledgers that increase transparency and accountability in donation flows. Such systems can automate fund distribution and provide donors with detailed reporting on how contributions are used.
