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PayPal Nonprofit Fees: How Much Does PayPal Take From Donations?

PayPal Nonprofit Fees: How Much Does PayPal Take From Donations?

Understanding the payment fee structure is crucial when choosing a payment processor for your nonprofit. PayPal nonprofit fees are a significant consideration for any organization seeking to maximize donations.

This article explores the fees associated with PayPal, how they compare to Stripe, and the payment gateways supported by DoJiggy. Let’s begin!

What is PayPal?

PayPal is a payment platform that allows users to send and accept payments online and in person via credit cards, debit cards, bank accounts, and Venmo (in the US). PayPal has over 250 million registered users, making it a user-friendly, preferred method of payment for many organizations and donors.

Regular PayPal Fees

Understanding PayPal’s regular payment processing fees is the first step in understanding how much they will take from a donation. PayPal fees vary depending on the manner in which and country where you are transacting donations. International cards and transactions also carry a higher fee. The fixed fee portion of PayPal fees varies based on the currency that your donor is paying in.

In this article, we focus on PayPal’s online processing fees.

PayPal Fees in the US and Canada

PayPal Fees in the US and Canada

For online transactions within the US and Canada, PayPal charges 2.9% + $0.30 per transaction. This fee applies to both standard and nonprofit transactions. Here’s a breakdown of what this means:

  • Transaction Fee: The 2.9% fee is applied to the donation amount.
  • Fixed Fee: An additional $0.30 is added onto each transaction.

For example, if a donor contributes $100, the fee breakdown would be as follows:

  • Percentage Fee: 2.9% of $100 = $2.90
  • Fixed Fee: $0.30
  • Total PayPal Fee: $2.90 + $0.30 = $3.20

Thus, from a $100 donation, your nonprofit would receive $96.80.

PayPal Fees in the UK

PayPal Fees in the UK

In the UK, the Payal fee structure is slightly different. Organizations are still charged a percentage of the transaction amount plus a fixed fee. The standard rate for nonprofits in the UK is 1.4% + £0.20 per transaction. Here’s how it works:

  • Percentage Fee: 1.4% of the donation amount.
  • Fixed Fee: £0.20 per transaction.

For a £100 donation:

  • Percentage Fee: 1.4% of £100 = £1.40
  • Fixed Fee: £0.20
  • Total PayPal Fee: £1.40 + £0.20 = £1.60

Thus, from a £100 donation, your nonprofit would receive £98.40.

PayPal Fees in Australia

PayPal Fees in Australia

Similarly, in Australia, PayPal charges a percentage of the transaction along with a fixed fee. The standard rate for nonprofits is 2.6% + AUD 0.30 per transaction.

For an AUD 100 donation:

  • Percentage Fee: 2.6% of AUD 100 = AUD 2.60
  • Fixed Fee: AUD 0.30
  • Total PayPal Fee: AUD 2.60 + AUD 0.30 = AUD 2.90

Therefore, from an AUD 100 donation, your nonprofit would receive AUD 97.10.

PayPal Fees in Other Countries

PayPal currently supports 25 currencies. Each country has a unique fee structure. You can check for PayPal fees in other countries here.

PayPal for Registered Charities

PayPal for Registered Charities

PayPal offers a very attractive reduced rate for registered charities. In the U.S., a registered charity must have a 501(c)(3) designation and verify this with PayPal before you can get their discounted transaction fee. For nonprofits that are not registered charities, the standard PayPal transaction fees apply.

Registered nonprofit organizations in the US can receive a reduced PayPal non-profit rate of 2.2% and $.30 per transaction. Again, each country’s fees differ, so check charity requirements and fees for your currency.

What is the PayPal Giving Fund?

One significant benefit of using PayPal for charitable donations is the PayPal Giving Fund. This fund allows donors to contribute to their favorite causes with no additional fees, meaning 100% of a donation goes to the charity. The PayPal Giving Fund is an IRS-registered 501(c)(3) public charity.

Benefits of enrolling in the PayPal Giving Fund include:

  • No Fees: Unlike regular transactions, PayPal Giving Fund donations do not incur processing fees.
  • Increased Trust: Donors are more likely to contribute when they know that 100% of their donation goes to a vetted charity.

However, it’s important to note that standard processing fees still apply to other types of transactions outside the PayPal Giving Fund.

PayPal Giving Fund Fees

The PayPal Giving Fund operates by collecting donations for nonprofits and distributing the funds without deducting any fees. This model ensures that charities receive the full amount donated with no fees charged.

Comparing PayPal to Stripe

Comparing PayPal to Stripe

While PayPal is a popular choice, comparing it with other payment processors like Stripe is essential to selecting the best payment processing option for your organization. Stripe offers competitive rates and a range of features beneficial to nonprofits.

Stripe’s Fees in the US and Canada

Stripe charges a similar fee of 2.9% + $0.30 per transaction for standard transactions. Stripe also offers discounted rates for nonprofit organizations, which can make a significant difference in the long run. Here’s a closer look at Stripe’s fee structure:

  • Standard Rate: 2.9% + $0.30 per transaction.
  • Nonprofit Rate: Stripe offers discounted rates for nonprofits, typically 2.2% + $0.30 per transaction.

For a $100 donation with the nonprofit rate:

  • Percentage Fee: 2.2% of $100 = $2.20
  • Fixed Fee: $0.30
  • Total Fee: $2.20 + $0.30 = $2.50

Thus, from a $100 donation, US and Canadian nonprofits will receive $97.50 at Stripe’s nonprofit rate.

Comparative Analysis

When comparing PayPal’s nonprofit fees to Stripe’s fees, several factors come into play:

  • Fee Structure: Both PayPal and Stripe charge a percentage of the transaction amount plus a fixed fee. Their discounted nonprofit rates for nonprofits should not be overlooked.
  • Additional Benefits: Both platforms offer advanced features like seamless integration with various platforms, customizable donation forms, and comprehensive reporting tools.
  • User Experience: Stripe is known for its user-friendly interface and robust API, making it easy to integrate into websites and apps. Many organizations chose PayPal as it is the most popular payment processing platform worldwide.

Check out our blog post: “7 Ways Stripe Excels as a Nonprofit Payment Processor.”

Payment Gateways Supported by DoJiggy

At DoJiggy, we aim to provide users with flexible and reliable payment processing options. We support Stripe, which is known for its user-friendly interface and robust security features.

  • Current Support for Stripe: Stripe is our primary payment processor, offering seamless integration and a variety of features tailored for nonprofits.
  • Coming Soon! – PayPal: We are excited to announce that we will soon support PayPal as a payment processor, giving our users even more options to manage their donations efficiently.

Having both Stripe and PayPal as payment gateways will allow users to choose the best option that suits their needs and preferences. This flexibility ensures that nonprofits can optimize their fundraising efforts and provide a smooth donation experience for their supporters.

When your organization chooses the free payment option with DoJiggy, you’ll pay no platform fees and only be responsible for payment processing fees paid directly to Stripe or PayPal.

Frequently Asked Questions about PayPal Nonprofit Fees

What are the standard PP Charity Fees for donations?

These fees are standard for most transactions but can vary depending on the specific terms set by PayPal.

  • PayPal typically charges 2.9% + $0.30 per transaction in the US and Canada.
  • In the UK, the rate is 1.4% + £0.20 per transaction.
  • In Australia, it’s 2.6% + AUD 0.30 per transaction.

How do PP Charity Fees compare to other payment processors like Stripe?

While PayPal charges 2.9% + $0.30 per transaction, Stripe offers a discounted nonprofit rate of 2.2% + $0.30 per transaction. This can result in significant savings over time. Stripe also provides additional features, such as customizable donation forms and comprehensive reporting tools, which can be advantageous for nonprofits.

Are there any additional benefits to using PayPal for charities?

Yes, the PayPal Giving Fund allows nonprofits to receive donations with no additional fees, ensuring 100% of the donation goes to the charity. However, it’s important to note that standard processing fees apply to other types of transactions. Nonprofits must register with the PayPal Giving Fund to benefit from this feature.

What is the PayPal Giving Fund, and how does it benefit nonprofits?

The PayPal Giving Fund is a program that collects donations on behalf of nonprofits and distributes the funds without deducting any fees. This means that charities receive 100% of the donated amount. It enhances donor trust and encourages more contributions.

Are there any hidden fees with PayPal Charity Fees?

PayPal is transparent about its fee structure and charges a flat rate. However, nonprofits should be aware of currency conversion fees and potential charges for international transactions, which can add to the overall cost of payment processing.

How can nonprofits register with the PayPal Giving Fund?

Nonprofits can register with the PayPal Giving Fund by visiting the PayPal website and following the registration process. Once registered, they can receive donations from platforms like eBay for Charity, GoFundMe, and other PayPal partners without incurring additional fees.

Can nonprofits negotiate lower PayPal Charity Fees with PayPal?

Some large nonprofits might be able to negotiate lower fees with PayPal, depending on transaction volume and other factors. It’s always a good idea to contact PayPal directly to discuss potential fee reductions.

What should nonprofits consider when choosing between PayPal and Stripe?

Nonprofits should consider the fee structures, additional benefits, and ease of integration when choosing between PayPal and Stripe. While Stripe offers a lower nonprofit rate and advanced features, PayPal’s wide recognition and the PayPal Giving Fund are also significant advantages.

Conclusion on PayPal Processing Fees

Choosing the right payment processor is vital for maximizing your nonprofit’s donations and ensuring a seamless experience for your donors. By understanding the PayPal nonprofit fees and how they compare to other processors like Stripe, you can make an informed decision that benefits your organization.

For more information about our payment processing options, contact us today. Ready to enhance your fundraising efforts? Start your free account with DoJiggy and see how our platform supports your nonprofit’s mission!

Lisa Bennett

About Lisa Bennett

Lisa is the Sales Director at DoJiggy. She joined DoJiggy in 2006 and loves her job. Prior to working with DoJiggy, she worked at several non-profits and managed special event fundraising.

See other posts from Lisa Bennett

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