Nonprofit credit card processing: PayPal nonprofits.
To confirm your nonprofit status, you need to provide the following:
- Evidence of nonprofit registration such as Articles of Incorporation that clearly indicate the nonprofits status of your organization, IRS 501(c)(3) determination letter or documentation of candidacy.
- A preprinted bank statement or voided check from your nonprofit bank account. Starter checks are not acceptable. The organization needs to own each bank account linked to this PayPal account. You can't use a personal bank account.
- Information about how you intend to use the money (such as donations or membership fees).
- Mission statement (if applicable).
- Subordination or fundraising letter (if applicable).
Why do nonprofit, religious or political organizations need to send you all these documents?
We use these documents to verify that the charity is registered and to ensure that we are meeting our regulatory requirements for the government. Donors also need to know that their money is going to a registered nonprofit organization. We also need to verify that the nonprofit is registered because PayPal offers discounted rates to 501(c)(3) organizations.
I used the Donate button to collect a payment. Why was my account limited?
The Donate button was created for nonprofit organizations that receive discounted rates. Your account may have been limited because we were waiting for documents confirming that you are a registered nonprofit organization. If you are not a registered nonprofit and need to collect money, we recommend you to use the Pay Now button instead. Learn more about our nonprofits products.
I’m a nonprofit. Do I need to verify my account before I can accept or withdrawal donations from my account?
We make it easy to set up your site to take payments, but to withdraw more than $500 a month you will need to verify your account. You can do this by linking and confirming a bank account and adding your EIN (Employer Identification Number).
How are these documents used?
We need to make sure our members are donating to registered charities and we are meeting our regulatory requirements for the government.
|What is needed?||How information is used|
|Registration with your governing jurisdiction:||Verify that your nonprofit is registered.|
|Documentation of candidacy (if applicable):||Verify that you are registered as a candidate for office.|
|PAC (Political Action Committee):||Verify that your political organization is registered.|
|Bank Account Information:||Verify that the money will be distributed to the charity. The bank account name should be the same as the nonprofit name.|
|Formal mission statement if you are a IRS 501(c)(3)||Understand the purpose of your charity and how the PayPal account will be used.|
|Subordination or fundraising letter||Verify that you have received the nonprofit’s authorization to collect money on their behalf.|
|How money will be used||Verify that the money will be used for charitable purposes.|
What is a subordination letter?
A letter signed by a nonprofit organization confirming that you’re authorized to raise money on their behalf. The letter should be on the organization’s letterhead and signed by an officer/director/trustee of the organization. Please include the following information in the letter:
- Your name.
- EIN/TIN number of parent organization (if necessary, group exemption number).
- Officer/director/trustee’s contact information including name, signature, email address street address and phone number.
What is a fundraising letter?
A letter signed by the organization that you are raising money for that confirms that you’re authorized to raise funds on their behalf. The letter should be preprinted on the organization’s letterhead and signed by an officer/director/trustee. Please include the following information in the letter:
- Your name.
- Nonprofit’s tax number, taxation status and purpose.
- Officer/director/trustee’s contact information including: name, signature, email address, street address and phone number.
What is the difference between a fundraising letter and a subordination letter?
The documents have a similar purpose but they include different information.
- A subordination letter includes the EIN/TIN number of the parent organization.
- The fundraising letter includes the nonprofit’s tax number, taxation status.
How can charities protect themselves from fraud?
- Know your donors and where your money comes from. Call to thank new and unknown donors that make large contributions. Monitor irregular donations and contact the donor if you don’t feel the money is legitimate.
- Host a website with information about your charity and tell your community how you are using their donations.
- Monitor the Internet for fake websites that are using your charity’s name. You don’t want your contributors to accidentally donate to a fraudulent website.
- Keep an up-to-date list of the people who are authorized to accept money on your behalf and limit access to the list.
Report any fraudulent donations in the PayPal Resolution Center so PayPal can take appropriate action.
Money service provider.
What documents do financial services or money service providers need to provide to remove a limitation?
Log in to the Resolution Center and provide the following information:
- List of your products and services.
- Detailed explanation of your business model.
- List of the URLs or websites where you receive payments.
- Description of how you intend to use PayPal including the payment methods (donations, membership fees, etc.) you will be accepting.
Trust fund or trust account.
Can I set up an account in a trust fund or trust account?
We review trust funds on a case-by-case basis. Once we are ready to review your account, we will send you an email requesting information about the trust such as:
- The purpose of the trust.
- The beneficial owner(s) of the trust.
- List of authorized parties on the trust.
- The sources of the money going into the trust.
Frequently asked questions.
PayPal lets you quickly and securely send and receive money for goods, services and more.
With PayPal you can:
- Shop online in more than 200 countries and regions.  >
- Send money securely to friends and family around the world.  >
- Checkout quickly at hundreds of your favorite online stores.  >
- Accept credit cards on your website.  >
- Make donations to your favorite charity.  >
- Set up an online shop and receive payments.  >
- Use your credit card and earn rewards.
At PayPal, your financial security is our highest priority. We use the latest anti-fraud technology to help make sure your transactions are safer and you’re 100% protected against unauthorized payments sent from your account.
The Consumer PayPal app is primarily for consumers. People use it to send and receive money either to or from friends and family or businesses. They can make payments in stores or online, make donations, as well as manage bank and payment card information.
The PayPal Business app is for people who use PayPal to conduct business regularly. It’s the best way to manage your business on the go. You can create and send invoices, provide refunds, transfer money to a bank, view and organize your customers’ information as well as contact them.
PayPal Here lets you accept multiple forms of payment online or in a physical setting such as a store. The app contains powerful tools to let you manage inventory, invoice, and price items. You can also create reports and add multiple users.
Want to know more? Go to our Apps page.
PayPal can help your nonprofit organization easily accept donations from supporters. Most nonprofits choose PayPal Payments Standard or PayPal Checkout (formerly known as Express Checkout) as their payment solution. These options let your donors complete their transactions on the PayPal website. Note that you must have a PayPal Business account – not a Personal account – to accept donations for your organization. You’ll need to confirm your nonprofit status to be eligible for the lower nonprofit transaction rate.
Be prepared to provide the following information:
- Evidence of nonprofit registration with any applicable regulatory body, such as Articles of Incorporation, IRS 501(c)(3) determination letter or documentation of candidacy.  >
- A pre-printed bank statement or voided check from your account. Starter checks are not acceptable. The organization needs to own each bank account linked to this PayPal account. You can't use a personal bank account.  >
- Information about how you intend to use the money (such as donations or membership fees).  >
- Your mission statement (if applicable).  >
- A subordination or fundraising letter (if applicable).
We use these documents for several reasons:
- To verify that your nonprofit is registered, because we offer discounted rates to 501(c)(3) organizations.  >
- To ensure we’re meeting our regulatory requirements for the government.  >
- To reassure donors that their money is going to a registered nonprofit organization.
Special rates for 501(c)(3)
We offer discounted fees for registered nonprofit organizations with 501(c)(3) status. If you transact between $0 and $100,000, you’ll pay a discounted flat-rate fee. For anything over $100,000, please call: 1-855-787-1012.
To apply for the nonprofit rate, click here.
If you don’t have 501(c)(3) status, PayPal still offers a simple flat-rate fee.
Add a PayPal Donate Button to your Site Now
Learn more about all the tools PayPal provides to help nonprofits raise funds at PayPal Nonprofits.
You can use PayPal Credit on purchases at thousands of stores that accept PayPal. It’s also available for purchases on eBay and exclusively at thousands of other online stores.
See the PayPal Credit Terms and Conditions.
How do I apply for PayPal Credit?