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https://www.glueup.com/blog/paypal-for-nonprofits?utm_source=edm&utm_medium=APAC&utm_campaign=April2022newsletter
Submission: On April 19 via api from SG — Scanned from DE
Submission: On April 19 via api from SG — Scanned from DE
Form analysis
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Text Content
Introducing Speed Networking 2.0 with Smart Matching Technology - the smart way to build relationships virtually! Start Networking * Log In * Support * EnglishEspañol LATAMPortuguêsPусскийTürkçe繁体中文中文한국어 * Products * PLATFORM MODULES CRM Community Online & Offline Events Memberships Email Campaigns Finance & Invoicing Tasks Surveys CPE/CPD Credits Website MOBILE APPS My Glue User-friendly mobile app for your attendees and members. Manager App Manage your operations and stay in the know from anywhere. * Solutions * ALL-IN-ONE SOLUTIONS Event Management Suite Plan, promote, execute, and evaluate all of your events. Membership Management Software Retain, engage, and grow your member community. Webinar Management Suite Monetize and enhance your online events and webinars. Community Management Suite Enable your community to thrive and amplify engagement. Chapter Management Suite Check the health of all of your chapters and affiliates in two clicks.. Speed Networking New Provide your community with fully immersive virtual networking experience. FOR YOUR INDUSTRY Associations Chambers of Commerce Conference Organizers Corporations Non-Profits Financial Services Consultancy Firms Training & Development * Pricing * About * ABOUT GLUE UP Company Learn how we came to be a leading engagement platform. Culture Find out what values guide us on our mission. Media Glue Up news, press releases, and media contacts. Awards See our accomplishments as a global leader in technology. _ Contact Us We're here for you. Get in touch if you have any questions or feedback. Partner Programs Help us transform professional communities by becoming a Glue Up Partner. * Resources * RESOURCES Blog Expert insights, tips, and articles to help you become smarter. Case Studies Find out why customers stick with Glue Up. Library Download free eBooks, guides, industry whitepapers, and more. Academy Elevate your skills and become Glue Up expert. _ Security Learn about how we protect you and your data. Integrations Connect the tools you love and use every day with Glue Up. * Products * CRM Community Online & Offline Events Memberships Email Campaigns Finance & Invoicing Tasks Surveys CPE/CPD Credits Website MOBILE APPS Glue Up App Glue Up Manager * Solutions * Event Management Suite Membership Management Suite Webinar Management Suite Community Management Suite Training Management Suite PER INDUSTRY Associations Chambers of Commerce Conference Organizers Corporations Non-Profits Financial Services Consultancy Firms Training & Development * Resources * Blog Case Studies Library Academy Media Integrations Security * Pricing * About * Contact Us * Log In * English Español LATAM Português Pусский Türkçe 繁体中文 中文 한국어 Book a Demo × SEARCH GLUE UP Search TRY SEARCHING FOR: Online Events Memberships Networking CRM A GUIDE TO PAYPAL FOR NONPROFITS: ACCOUNT SET UP, ADVANTAGES, DISADVANTAGES & ALTERNATIVES Ayesa Lubag, Marketing Content Specialist • Mar 17, 2022 Share: Nonprofit organizations play a vital role in building and strengthening communities by offering services that contribute to their growth. Donors for your nonprofit have a way to give donations–whether online or on mobile through PayPal. Plus, you can connect with different communities and reach more donors with the digital payment system. So, if you’re part of a nonprofit organization that’s looking to start fundraising on a safer and more secure platform, this article can help you learn more about PayPal for nonprofits. QUICK READS * What Is a PayPal Nonprofit Account? * Why Use PayPal For Nonprofits? * Benefits of Using PayPal for Donations * Disadvantages of Using PayPal For Nonprofits * Ways to Use Your PayPal Nonprofit Account to Increase Donations * PayPal Nonprofit Fees for 2021 * Paypal Nonprofit Account: Frequently Asked Questions * What Are the Alternatives to PayPal for Nonprofits? WHAT IS A PAYPAL NONPROFIT ACCOUNT? A PayPal nonprofit account lets nonprofit organizations accept donations from supporters easily. Most users choose PayPal Payments Standard or PayPal Checkout as their payment solution. Donors can access and finish their transactions on the PayPal website with the two options mentioned above. Remember that a PayPal Business account is required to become eligible to accept nonprofit donations. We recommend that you confirm your nonprofit status first to get a lower transaction rate. WHY USE PAYPAL FOR NONPROFITS? PayPal offers nonprofit organizations various services to raise money for their cause. It is a widely recognized brand known to be safe and reliable for donations. The digital payment system is a PCI-compliant payment processor that ensures security–evident each time it automatically monitors donations 24/7 and checks fraud screenings. As a reliable payment solution, it reassures users that it will keep and protect their credit card or bank information from getting stolen online. BENEFITS OF USING PAYPAL FOR DONATIONS As a trusted global brand, PayPal has become a popular choice for donors. Here are the reasons why: 1. A TRUSTED BRAND IN THE INDUSTRY PayPal is an electronic commerce company that offers fast, safe, convenient payment solutions globally. It supports more than 600,000 nonprofits with fundraising and contributes to charitable efforts across the globe. One example is the GivingTuesday campaign, which the digital platform has supported since 2012. In a study of 1,029 consumers in the US who made donations to a nonprofit, at least 55% of respondents said that they are willing to donate again if PayPal is an option. In line with this, 77% of respondents believe that it offers secure payment methods. Customers with PayPal accounts can transfer online donations without entering their bank account or credit card information. Adding Express Checkout allows logged-in customers to view all orders, dispatch details, and check out faster. 2. ONE-CLICK EASY TRANSACTION Part of PayPal’s fraud and purchase protection is its One Touch feature that lets you quickly check out with the same device and browser. No need to enter your email or password. All you have to do next is review your details and pay at millions of PayPal merchants. 3. A GLOBAL PRODUCT With global access to more than 200 world markets, donors can customize currency. Most donors give to organizations outside of their country, which can support your nonprofit organization’s expansion strategy. 4. PLENTY OF SOFTWARE INTEGRATIONS PayPal for nonprofits has partnered with other leading online fundraising platforms for system integration. Different integrations streamline the transaction processing and help nonprofits manage their donations efficiently. If your organization has a CRM platform or fundraising software, you can easily add PayPal as a donation option. This allows you to effectively reach new donors and add ease of giving for your current donors. Additionally, you can easily collect donor information from a CRM platform through PayPal without requiring manual entry. 5. MOBILE-FIRST PLATFORM FOR DONATIONS As a mobile-first payment platform, you can quickly increase donations using PayPal for nonprofits, especially online and via mobile. PayPal is one of the most preferred payment methods in the US. In fact, it’s the leading mobile app publisher that has reached approximately half of the country’s mobile users. It only takes a few steps to add PayPal’s donation button to your website. An optimized site and mobile experience can have a significant impact on giving. It means fewer users will drop off in the middle of checkout due to a clunky online form, missing button, or an annoying amount of scrolling and clicking. Supporters giving in-person donations can also enjoy a convenient mobile experience via PayPal Zettle. You have to purchase a card reader and download the app to get started. DISADVANTAGES OF USING PAYPAL FOR NONPROFITS No platform is perfect, and PayPal comes with a few drawbacks that you should be aware of before registration. 1. LIMITED FUNDRAISING FEATURES As a nonprofit organizer, there are other ways to encourage the audience to participate besides adding the donate button on a website. PayPal lets you accept online donations, but everything is transactional on a basic level. It lacks the fundraising experience to attract supporters and encourage them to come back. The digital payment platform doesn’t let you build a fundraising page, contribute to a supporter feed, or set up events. If you’re looking to be creative in a fundraising campaign, there’s a way for you to add the brand’s logo to the donation form, but that’s it. 2. VERIFIED NON-PROFIT STATUS IS REQUIRED Verified non-profit status is a must if you want to lower donation rates. However, you cannot do this unless PayPal has confirmed you tax-exempt status at all levels of government. So if you raise money before the confirmation, you cannot expect refunds on the higher fee amounts even after the approval. Therefore, it would be best to wait for confirmation before raising any amount. 3. ELECTRONIC DONATION IS NOT FOR EVERYONE It is easy to donate with PayPal, but some may not be comfortable with electronic payments. Others may want the average amount of donations at work within your programs, which may be hard to monitor when making this type of donation through the platform. To address this issue, create an email subscription form when sending updates. However, remember that it cannot replace the pleasure of making a direct in-person donation. 4. LIMITED PAYMENT METHODS A PayPal nonprofit limits itself to accepting traditional credit card payments, along with Venmo, or donations via the same payment system. Credit cards and debit cards have become some of the primary ways consumers pay for their purchases today. It limits the consumers' payment options since some have rapidly been using mobile wallets like Google Pay and Apple Pay, which store payment card information. 5. TRANSACTIONS REQUIRE PAYPAL FEES TO BE PAID You can expect a 2.2% transaction fee for donations, but a $0.30 per transaction fee should also be paid. This allows you to see the complete donation details every time someone donates through PayPal. On the other hand, you can lose $2.50 out of every $100 amount donated to a cause. There are special rates available for donations that exceed $100,000. How to Set Up a Nonprofit Account on PayPal Creating an account to use PayPal for nonprofit organizations is easy. Make sure you have your personal information ready and follow the steps below. 1. 1. Create a PayPal business account for your nonprofit organization. 2. 2. In the business account drop-down menu, select “nonprofit organization.” 3. 3. Click Create. 4. 4. Enter information related to your account, such as business details and email address. 5. 5. Select the category under which your nonprofit operates, whether educational or registered charity. 6. 6. Provide backup documentation to support the nonprofit status. You may be required to enter your federal tax ID or the owner’s Social Security number if you set up a business account. 7. 7. Enter bank information to enable ‘donate by bank transfer’ and receive money from your bank account. WAYS TO USE YOUR PAYPAL NONPROFIT ACCOUNT TO INCREASE DONATIONS ACCEPT AND PROCESS ONLINE DONATIONS VIA PAYPAL Add a PayPal Donate button to your website to securely accept donations or contributions. It comes with a low transaction fee every time a donor contributes to your nonprofit. It lets you pick the donation button style, choose the preferred currency for donations, and set recurring monthly donations for donors. PayPal.Me is a peer-to-peer payment platform you can choose for soliciting donations online. With it, you can send personalized donation links to donors and ask for individual gifts from your loyal supporters. ACCEPT DONATIONS IN PERSON VIA PAYPAL PayPal mobile POS system enables nonprofits to accept donations in person. With it, you pay $29 for the first PIN card reader and $79 for subsequent ones. Getting in-person donations becomes easy, along with a chip and contactless processing. If you process transactions via Zettle, they are subject to a 2.29% + $0.09 fee. Keep in mind that as a nonprofit, there’s no way for you to pay a discounted processing fee when using Zettle. Transactions are subject to a higher 3.49% + $0.09 fee. You can also send free invoices with the PayPal Zettle app. At least 3.49% + $0.49 rate should be paid for standard PayPal non-donation online transactions. USE PAYPAL’S MOBILE POS WHEN SELLING Zettle is PayPal’s all-in-one POS solution to monitor donations and offer flexible payment options to donors. But if you prefer a different POS system, PayPal lets you integrate it with the platform. There’s a 2.29% + $0.09 PayPal rate for in-person transactions for any POS partner. You also have to pay additional software fees for the POS system. PAYPAL FOR TRACKING DONATIONS & EFFICIENT BOOKKEEPING PayPal has a suite of reporting tools to offer detailed information about account activity and streamline nonprofit bookkeeping. The payment system has QuickBooks integration via the Connect to PayPal data integration app that you can access from a QuickBooks account. PAYPAL NONPROFIT FEES FOR 2021 PayPal’s standard rates are 2.9%for its processing and $.0.30 for every donation. You can apply to become an eligible 501c3 nonprofit organization that can receive the discounted fee of 2.2% and $0.30 per donation. Interested nonprofit organizations should send their applications to receive a special reduced transaction rate. Eligible charities will be automatically enrolled in PayPal Giving Fund. WHAT ARE THE ALTERNATIVES TO PAYPAL FOR NONPROFITS? Meet the needs of millions of donors with other payment platform alternatives that provide trusted payment methods and a sense of ease through the donation process. DONORBOX Donorbox is a fundraising software that allows individuals and 501c3 nonprofit organizations to set up and receive donations online. It comes with an optimized donation payment system available in 9 languages and 28 currencies. Moreover, it supports donations via bank transfers, Apple, Google Pay, and more. DONORBOX VS. PAYPAL Donorbox specializes in donations as it caters to nonprofit-specific needs. However, it doesn’t support some transaction and e-commerce features supported by PayPal but can process donations in the latter. STRIPE Stripe is a unified platform that comes with a suite of payments products. It helps organizations collect credit cards online with ease without requiring any merchant account or gateway. With this online payment platform, companies can send invoices, distribute physical cards, avoid fraud, and many more. STRIPE VS. PAYPAL Stripe is more suited for creating a customizable checkout flow. You can integrate a shopping cart to fit your organization’s branding. However, it will require developer knowledge to customize its features. On the other hand, PayPal doesn’t offer the same customization options, but you can easily set it up. SQUARE Square helps nonprofits easily process donations whether in person or online. Accepting credit cards is now fast and safe with no long-term contracts or extra fees. What’s more, it comes with a free Square POS app that works seamlessly with other software options. SQUARE VS. PAYPAL If you will be doing in-person and mobile transactions, Square is a better option. On the contrary, PayPal is more suitable for e-commerce and online payments. And when it comes to the companies’ POS systems, Square comes with plenty of business tools, including employee management, while PayPal is only limited to payment. PAYPAL NONPROFIT ACCOUNT: FREQUENTLY ASKED QUESTIONS Here are the answers to some questions you may have about using PayPal for your nonprofit organization. How can I set up PayPal for my nonprofit to accept donations? Sign up for a PayPal Business account and then select “nonprofit Organization” as the business type and “nonprofit” as the category. Enter your organization’s bank account information to link to your PayPal account. After creating a PayPal account, you can now add a Donate button to your organization’s website and start accepting donations. Is fundraising on eBay available with a PayPal account? Yes. PayPal users can purchase an online gift for your nonprofit organization from eBay GivingWorks. Can my nonprofit organization access PayPal transaction report? Yes, PayPal offers online reports in a variety of formats so that your organization can analyze its revenues, automate the bookkeeping process, and accurately monitor transactions. A real-time transaction log on a PayPal account for nonprofit is accessible, which displays transaction date, payer name, email address, transaction amount, and more. Is there a way to collect PayPal payments on social media? Yes. Copy the “Donate button URL text” and paste it on any social media site. Clicking the URL will direct users to a safe PayPal page intended for payment processing. Which PayPal product do I choose for my nonprofit organization? As a start-up nonprofit organization, you can use PayPal Payments Standard or Express Checkout for online transactions. Donors can complete their transactions on the PayPal website through them. But if you want transactions to occur on your own website, you can choose PayPal Payments Pro instead. GAIN NEW NONPROFIT MEMBERS AND KEEP THEM CONNECTED Would you like to create a digital place to connect and engage members of your nonprofit organization? Be sure to book a demo of Glue Up’s Membership Management software. With custom online application forms and several membership types, you can easily encourage prospective nonprofit members or donors to sign up. What’s more, it allows you to communicate with members everywhere with its mobile app–helping you manage operations and automate processes while keeping everyone connected. Like the article? Share it with your friends! Share: WE MEAN IT WHEN WE SAY IT’S ALL-IN-ONE CRM Manage all your contacts in one place and leverage analytics. Community Give your community a digital space where they can engage. Online & Offline Events Plan, promote, execute, and evaluate all your events. 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