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PayPal Is Credit Card Processing Option for Nonprofits

Partnership with Blackbaud Expands PayPal's Nonprofit Service


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PayPal is successfully used by many nonprofits to process credit card donations. The company recently teamed up with Blackbaud to offer BlackbaudNow, a point-and-click website builder with secure donation processing and the ability to send emails and record donors’ giving histories.

We asked Judy Chang, principal product manager for nonprofits at PayPal, to tell us about PayPal's opportunities for nonprofits.

Nonprofit Guide: Doesn’t PayPal have a program for nonprofits that already have their own Web site? What is that program like?

Judy Chang: Yes, in fact, in 2010, more than 200,000 nonprofit organizations were already using PayPal to receive donations online. And on average, more than 250 nonprofits around the world join PayPal every day. PayPal offers relevant and targeted online solutions that give nonprofits – regardless of size – the ability to accept payments from a wide range of donors easily and safely.

In addition to BlackbaudNow, there are several ways that nonprofits can use PayPal. First, most nonprofits with less than $100,000 in annual income can use the Donate button, which is fast and easy to integrate into their Web site. Second, PayPal’s giving widgets on social networking sites, such as Facebook, allow nonprofits and individuals to raise money easily through their online network or personal Web page. There is even a mobile giving application. The widgets are viral because supporters can copy them and add them to their own Web pages. You can track progress against a goal and acknowledge top supporters. Donors then check out securely on the PayPal site.

Nonprofit Guide: What are the costs for using PayPal?

Judy Chang: PayPal offers low transaction fees for nonprofits. Fees are applied only when you accept a contribution. If an organization does not receive any donations, a charity will not be charged a fee. In addition, we do not charge setup fees or recurring monthly fees.

Nonprofit transaction fees for the Donate button are 1.9% + $.30 per transaction for organizations with over $100,000 monthly volume and 2.2% + $.30 per transaction for organizations with less than $100,000 monthly volume. To be eligible, the organization must have documented 501(c)(3) status or they will not receive the reduced nonprofit transaction fees.


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