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How to Set Up a Nonprofit Paypal Account

When it comes to receiving donations online, any nonprofit would want to make sure their payment receiving and processing systems are up to the mark. Fortunately, there are some third-party services out there for use, and some, such as Paypal, even have special considerations that are designed to make the process easier for nonprofits.

How to Set Up a Nonprofit Paypal Account

Although anyone can sign up for a Paypal account and get the code for a donation button, you can set up a Paypal account solely for your nonprofit and get a few extra benefits out of it.

First, you will have to create an account on Paypal. You cannot use your personal accounts for this and have to create a separate one for your nonprofit. When provided with the option, select a business account.

Under business accounts, you will be provided with options for different types of business accounts in a drop-down menu. Select the ‘nonprofit organization’ option and click ‘create.’

Here, you will have to provide some information related to your account, such as the email address used for logging on to your Paypal account as well as the information about the business itself. This includes the name, date the nonprofit was established, and website. For nonprofits, you will also have to select the category under which your nonprofit operates, such as educational, charity, etc. You will also have to supply backup documentation to support the nonprofit status.

Paypal also requires you enter your federal tax ID or the owner’s Social Security number if you are setting up a business account.

Of course, you will also have to enter your account’s banking information to be able to transfer the donations you receive into your bank account.

With Paypal’s growing base, many nonprofits are looking into starting up their donation accounts using their service since they allow for higher growth by enabling you to reach new donors easily as well cost-effectively raise money.

Paypal is also secure, so your supporters don’t have to worry about their financial information being compromised and can make donations at their convenience from anywhere.

Nonprofits also get an advantage in the fees they have to pay per transaction, making it an attractive service for receiving donations.

An Easier Way to Set It Up

There are other, easier ways to raise funds through Paypal. By setting up an account on Givingloop (which takes less than five minutes!), you can have all the benefits of Paypal without having to go through the hassle of setting up and maintaining an account on the site itself. The money will be transferred straight to your bank account without you having to transfer it regularly.