The payment processor BluePay Inc. has developed a service to help nonprofit organizations increase funding and cut expenses by enabling consumers to set up reccurring donations.

The Naperville, Ill., company said last week that it can host nonprofit groups' payment pages on its servers, eliminating the need for nonprofits to handle transaction data. Nonprofits can link to the donation pages from their own Web sites.

BluePay customizes each donation page to match the look of the nonprofit's Web site. "The not-for-profits we process for have noticed an increase in funding and a decrease in the expenses associated with outbound calls and mailers to existing donors to ask for another donation," Kristen Gramigna, a BluePay director, said in an interview.

Donors can set up annual, quarterly, monthly or daily donations and pay using cards or direct debits from their bank accounts. Gramigna would not name BluePay's nonprofit customers, or discuss the company's processing fees.

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