Guide to setting up a PayPal account for your nonprofit

Nonprofit organizations, big and small, are activating their communities to help however they can, and it’s more important now than ever that your donors have a way to give online and on mobile devices.

How to set up a nonprofit account

The process of creating a PayPal account for your nonprofit is straightforward – follow the steps below to set up your account, confirm your charity status, and start accepting donations.

Step 1: Register

First, an authorized representative of your nonprofit needs to sign up for a business account on PayPal.com. This is essential for accessing features tailored specifically for nonprofit organizations.

During the sign-up process, make sure to select “Nonprofit Organization” as your account type. You will need to provide detailed information about your charity, including its Employer Identification Number (EIN).

For some organizations, this information might suffice to confirm your nonprofit status. If additional verification is needed, you may be asked to submit proof of your charity tax status, such as your IRS determination letter.

Step 2: Identity verification

PayPal also requires all primary authorized users to verify their identity with key personal information, including their Social Security Number. Don’t worry: we won’t run a credit check – this is just for security purposes.

Step 3: Link your nonprofit’s bank account

Once PayPal has reviewed and confirmed your information, you’ll need to link your nonprofit’s bank account to your PayPal account. Similar to earlier, this could confirm your account’s nonprofit status without additional information – if so, PayPal will notify you via email.

If confirmation with just a bank account is not possible, follow the instructions provided in the email notification from PayPal to complete your account setup.

Step 4: Add a Donate button

PayPal offers a variety of fundraising solutions to fit the needs of organizations of all sizes. Take the time to familiarize yourself with them to select the best fit for your nonprofit’s goals and activities.

Once your PayPal nonprofit account is set up and you’re ready to start accepting donations, consider adding a standard or customized Donate button with a PayPal checkout flow to your website. User-friendly tools let your supporters choose their donation amount, set up recurring contributions, and select their preferred payment method – while delivering payment security for donors .

Follow these step-by-step instructions to begin fundraising directly from your site.

Benefits of creating a confirmed charity account with PayPal

PayPal is committed to amplifying the impactful work of charities – after all, these organizations play a vital role in uplifting communities and fostering a brighter, collective future. With an established PayPal charity account, eligible organizations unlock a host of advantages designed to boost their fundraising efforts and broaden their visibility.

Low payment processing rates

Verified nonprofits can enjoy access to low payment processing rates, helping more of each donation support your cause.

Enhanced presence on partner platforms through the PayPal Giving Fund

After your nonprofit’s account is verified, you may be enrolled in the PayPal Giving Fund – an IRS-registered 501I(3) public charity that uses PayPal technology and financial support to fundraise for causes. Keep in mind that certain charities, including those based in California, will need to complete an additional brief form to join.

Enrollment in the PayPal Giving Fund is a significant step towards helping your charity receive donations from partner platforms like Facebook, Instagram, and GoFundMe. In other words, you can enhance your organization’s discoverability, encouraging more donations.

To optimize your presence within the fund, keep your charity's profile updated, particularly your logo and mission statement. This helps potential donors easily identify and learn about your charity when they want to contribute.

Direct connection with donors

Nonprofits enrolled with the PayPal Giving Fund receive access to donor information when donors choose to share their details, allowing nonprofits to send personalized thank-you messages to supporters easily.

A one-stop donation solution

Handling donations across channels can be tricky. To help with this, PayPal consolidates your fundraising efforts, allowing for centralized management of donations received via your website, PayPal, Venmo, partner platforms, or directly from grantmakers, including donor-advised fund sponsors, such as National Philanthropic Trust and Vanguard Charitable

Simple onboarding

While setting up a PayPal account for your nonprofit is a generally straightforward process, it’s natural to still have questions. Our dedicated charity support team is ready to help point you to the resources needed to optimize your account.

Learn more about the benefits of creating a confirmed charity account with PayPal.

Take your fundraising to the next level

Once you’ve successfully set up a PayPal account for your nonprofit, check out these helpful resources to get the most out of your digital fundraising solutions:

• How to fundraise in a mobile world. A large contingent of internet users access the web via mobile devices, so understanding the dynamics of mobile fundraising is more important than ever. This guide not only emphasizes the importance of optimizing for mobile but also covers the best practices for engaging donors and making the donation process as smooth as possible on smartphones and tablets.

• How fundraising with PayPal works. Ever wondered about the mechanics of online fundraising and how platforms like PayPal help facilitate secure, efficient donations? Here, we peel back the curtain to give you an in-depth look at our process. Discover how PayPal safeguards donor information, handles transactions, and helps funds reach your organization swiftly.

• 6 reasons to accept donations online. Still on the fence about moving your fundraising efforts online? This blog dives into the potential advantages of digital fundraising, from expanding your reach to increasing donor convenience and boosting donation frequency.

• How you can increase donations on your nonprofit website. Maximizing donations may require more than just adding the Donate button throughout your website. In this guide, we explore strategic tips for optimizing your website to help encourage higher donations. Best practices from sectors such as retail can be adapted to the nonprofit space effectively. Learn how to create compelling content, streamline the donation process, and utilize analytics to optimize your strategy continually.