Set up a Paypal Account to Receive Donations

PayPal is an online payment system that allows you to receive donations and other payments through websites and email accounts. There are special considerations for non-profit organizations, although anyone can sign up for a PayPal account and get the code for a "Donation" button to insert on a web page. Set up a PayPal account and receive donations for your charitable venture or donation-financed project.

Steps

  1. Create a PayPal account.
    • Visit the official PayPal website, which is linked in the sources area of this article, and click the "Business" tab at the top of the screen.
    • Click the "Get Started" button and follow the prompts.
  2. Select "Non-profit organization" from the account type drop-down list if you are creating an account for a charitable organization. Otherwise, choose "Business" and then click the "Create New Account" button.
  3. Enter the login email and password for your business account, create your security questions and provide the code before clicking the "Continue" button.
  4. Provide the details for your business or charitable organization.
    • The legal business name, date established and website URL should be entered in the appropriate boxes.
    • Nonprofit organizations will need to select the correct category such as political, educational, charity, religious or other. These types of accounts will be asked to supply backup documentation to support their nonprofit status.
  5. Type in a federal tax I.D. or personal Social Security number, primary contact information and a business address before clicking the "Agree and Continue" button.
  6. Supply banking information so that can transfer money donated to your PayPal account into a checking or savings account.

Tips

  • Personal accounts are not eligible for nonprofit status at PayPal.
  • Personal accounts can also be used to receive donations, but keep in mind that PayPal will report the transactions to the IRS once they reach a certain limit. You cannot avoid tax liability by using a personal account instead of a business account.

Warnings

  • Claiming nonprofit status that is not warranted is fraud and can cause your PayPal account to be closed or frozen. Additionally, individuals attempting to commit fraud may be subject to criminal charges.

Things You'll Need

  • Computer
  • Internet Access
  • Business or non-profit organization details

Related Articles

  • Set up a Number to Text for Donations
  • Set up a PayPal Button for Donations

Sources and Citations

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