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The PayPal Giving Fund is a great way to support your favorite charities, but it's essential to understand the fees involved. PayPal charges a 2% fee on donations, which is deducted from the donation amount before it's sent to the charity.
Donors can expect to see this fee reflected in the final donation amount. For example, if you donate $100, the charity will receive $98.
PayPal's fees are competitive with other online donation platforms, and the convenience of using a familiar payment system can be a big plus.
PayPal Fundraising Features
PayPal is one of the most well-known and trusted payment processors worldwide, making it a popular choice for nonprofits.
Nonprofits can accept donations using a PayPal personal account, and after taking the first step of starting a cause, you can follow steps to become a confirmed PayPal charity.
PayPal charges nonprofits 1.99% + $0.49 per transaction, and donors have the option to increase their donations to cover these fees.
Donors can indeed cover fees on PayPal when integrated with a third-party fundraising platform like Givebutter, which enables donor-covered fees.
Recurring Donations
Recurring donations are a great way to build a steady stream of support for your cause. You can accept monthly donations from supporters using PayPal's nonprofit service.
Donors can check the monthly payment box to set up recurring donations, and PayPal will attempt to collect funds on the day after the previous billing cycle or trial period ends. This makes it easy for donors to give regularly.
PayPal includes monthly fees for this service, so be sure to factor that into your fundraising plans.
Core Fundraisers on Instagram and Facebook
Donations made to fundraisers created before your nonprofit switches to PPGF will be distributed by Meta Payments according to its payout timelines.
Donations made to fundraisers created after your nonprofit switches to PPGF will go to PPGF and be granted to your nonprofit by PPGF, subject to PPGF policies.
PPGF-enrolled nonprofits can expect to receive funds within 15-45 days.
For PPGF-unenrolled nonprofits, PPGF will distribute funds with a check within 90 days.
PayPal Fund Fees Considerations
PayPal states that donors can increase their donations to offset payment processing fees, but the site doesn't share any additional information about how much donors can cover.
Donors can opt to cover the transaction fees completely when using a third-party fundraising platform like Givebutter that's integrated with PayPal.
PayPal's lack of transparency on fee coverage can be confusing for donors who want to give more.
Real users are saying that PayPal's fee structure can be a major concern for those who want to maximize their donations.
You can opt to cover fees completely with Givebutter, a fundraising platform that enables donor-covered fees when used with PayPal.
PayPal Fund Fees and Nonprofits
PayPal charges fees to charities, but qualified charities can receive a discounted rate.
The fee rates vary, with businesses paying 2.89% + $0.49 per transaction and nonprofit organizations paying 1.99% + $0.49 per transaction.
PayPal also charges an additional 1.50% for all international donations.
Setting up a PayPal Business account is relatively straightforward, with no platform fees, monthly subscriptions, sign-up costs, or cancellation penalties.
Nonprofit organizations can benefit from using PayPal as their online fundraising platform, thanks to its popularity and trustworthiness.
PayPal Fund Fees and Donors
Donors can increase their donations to offset payment processing fees on PayPal, but the exact amount they can cover is not specified on the PayPal website.
PayPal donors can opt to cover transaction fees completely when integrated with a third-party fundraising platform like Givebutter.
The exact amount donors can cover is not shared by PayPal, leaving some uncertainty around the process.
PayPal donors who use Givebutter can choose to cover fees in full, which may be beneficial for nonprofits looking to maximize their donations.
PayPal Fund Fees and User Experience
PayPal doesn't share much information about how much donors can cover in fees, but you can increase your donation to offset them.
Donors can opt to cover transaction fees completely when using a third-party fundraising platform like Givebutter.
PayPal donors have the option to increase their donations to cover payment processing fees.
Donors can cover these fees when using Meta's payment processing, but only if they increase their donation amount.
Meta will no longer cover payment processing fees starting October 31, 2023.
In the U.S., these fees are 1.99% + $0.49.
You can find more information on Meta's new payment processing guidelines on their website.
Frequently Asked Questions
What is the difference between PayPal and PayPal Giving Fund?
PayPal is an online payment system, while PayPal Giving Fund is a registered charity that facilitates donations to non-profits. Understanding the difference between these two services can help you make informed decisions about online giving and payment options.
Is there a fee to give someone money on PayPal?
Yes, there is a fee to send money on PayPal, but it's free if you use your balance or bank account. Fees apply when using a credit or debit card, starting at 2.9% + $0.30 per transaction.
Is there a fee to add funds to PayPal?
No, there is no fee to add funds to PayPal. However, standard transfers may take 3-5 business days to complete
Sources
- https://www.paypal.com/us/digital-wallet/send-receive-money/giving
- https://www.donordock.com/articles/paypal-giving-fund-is-it-a-good-fit-for-your-organization
- https://www.zeffy.com/blog/paypal-donation-fees-for-nonprofits
- https://givebutter.com/blog/paypal-for-nonprofits
- https://www.goodunited.io/blog/meta-and-the-paypal-giving-fund-your-guide-to-facebook-payment-processing-for-nonprofits
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