PayPal for Non-Profit Organizations: Fees and Rates to Know
PayPal is one of the most popular online payment platforms in the world, used by millions of users to make transactions safely and easily. However, for non-profit organizations, using PayPal can have fees and charges to consider. In this article, we will discuss PayPal fees and rates for non-profit organizations, so you can make a more informed decision in using this online payment platform.
What is PayPal?
PayPal is an online payment company founded in 1998. This platform allows users to make transactions safely and easily, using a credit card or bank account. PayPal has become one of the most popular online payment platforms in the world, with more than 400 million active users worldwide.
PayPal for Non-Profit Organizations
PayPal has a special program for non-profit organizations, allowing them to accept donations and conduct transactions online. This program is referred to as “PayPal for Non-Profit Organizations” (PayPal for Nonprofits). With this program, non-profit organizations can use PayPal to accept donations, make purchases, and conduct other transactions online.
PayPal Fees and Rates for Non-Profit Organizations
PayPal fees and rates for non-profit organizations may vary depending on the type of transaction and user location. Here are some common fees and charges that PayPal charges for non-profit organizations:
- Transaction Fees : PayPal charges a transaction fee of 2.9% + $0.30 USD per transaction for non-profit organizations. This fee is charged for every transaction made via PayPal.
- Currency Conversion Fees : If a non-profit organization accepts donations in a currency different from the currency used by PayPal, a currency conversion fee of 2.5% + currency spread will apply.
- Withdrawal Fees : If a non-profit organization wishes to withdraw funds from their PayPal account, they will be charged a withdrawal fee of 1% of the amount withdrawn, with a maximum of $10 USD.
- Premium Service Fees : PayPal also offers premium services for non-profit organizations, allowing them to have access to additional features such as donation management, member management, etc. The cost of this premium service may vary depending on the type of service selected.
Examples of PayPal Fees and Rates for Non-Profit Organizations
Here are examples of PayPal fees and rates for non-profit organizations:
- If a non-profit organization accepts a $100 USD donation via PayPal, it will incur a transaction fee of 2.9% + $0.30 USD = $3.20 USD.
- If a non-profit organization receives a donation of $100 USD in a currency different from the currency used by PayPal, it will incur a currency conversion fee of 2.5% + currency spread = $2.50 USD + currency spread.
- If a non-profit organization wishes to withdraw $100 USD from their PayPal account, they will be charged a withdrawal fee of 1% of the amount withdrawn = $1 USD.
How to Reduce PayPal Fees and Fees for Non-Profit Organizations
Here are some ways to reduce PayPal fees and rates for non-profit organizations:
- Accept Donations in Local Currency : If a non-profit organization accepts donations in the same currency as the currency used by PayPal, then currency conversion fees can be avoided.
- Using Premium Services : PayPal offers premium services to non-profit organizations, allowing them to have access to additional features such as donation management, member management, etc. The cost of this premium service may vary depending on the type of service selected.
- Using a Credit Card or Bank Account : If non-profit organizations use credit cards or bank accounts to carry out transactions, then transaction fees can be avoided.
- Using Other Payment Services : If non-profit organizations want to reduce PayPal fees and rates, then they can use other payment services such as Stripe, Square, or Google Pay.
Conclusion
PayPal is one of the most popular online payment platforms in the world, and has special programs for non-profit organizations. PayPal fees and rates for non-profit organizations may vary depending on the type of transaction and user location. However, by using several strategies, non-profit organizations can reduce PayPal fees and charges. In this article, we’ve discussed PayPal fees and charges for non-profit organizations, as well as some ways to reduce those fees and charges. With this information, non-profit organizations can make more informed decisions in using these online payment platforms.
