PayPal Giving Fund: How Nonprofits Can Benefit the Most
Is enrolling in PayPal Giving Fund worth it? Read on to learn everything you need to know about this donor-advised fund and how you can get the most out of it.
Lindsey Baker Bower
Is enrolling in PayPal Giving Fund worth it? Read on to learn everything you need to know about this donor-advised fund and how you can get the most out of it.
Despite some controversy, PayPal Giving Fund is a reliable option for most nonprofits looking to expand their avenues for receiving donations.
But it’s important to understand the ins and outs of how this donor-advised fund works so you know what you – and your donors – are getting into.
Formerly the PayPal Generosity Network, PayPal Giving Fund (PPGF) operates as a donor-advised fund organized by PayPal.
This means that donors give to the fund and make recommendations for where the funds should go, but PayPal ultimately makes the final decision about which organizations and causes receive the funds.
Donors typically give during checkout from businesses that have partnered with PayPal, or by setting up a Donor Account where at least 5% of funds are recommended for distribution each year.
These funds are distributed via PayPal as grants to the recommended charities. Charities pay no processing fees on the grants.
Yes! PayPal Giving Fund is a legitimate operation that brought in a whopping $502 million worth of contributions in 2023.
However, some donors may feel somewhat wary of donating through PPGF.
While donors make a recommendation for how their gifts should be granted, PayPal retains the right to redirect funds to a “similar qualifying charitable organization” if for some reason they are unable to give to the recommended charity.
If your donor gives to your organization at checkout, they’ll receive a receipt from PayPal – not from the organization they think they’re donating to.
Uncertainty around this process is what led to a multi-state settlement in 2020. The lawsuit alleged that PPGF was misleading donors about where their dollars were going. As a result, PPGF modified their disclosures and agreed to notify donors when their donations are redirected to a different organization.
With that clarifying information, many donors have enjoyed giving through PayPal Giving Fund and many organizations have benefited from the resulting grants. Let’s take a closer look at the perks for both donors and nonprofits.
Donors enjoy the perks of giving to a donor-advised fund, including:
Nonprofits enjoy some perks, too!
Sound good to you? Let’s look at how to get enrolled.
Enrolling in PayPal Giving Fund takes just a couple of steps!
Note: You don’t have to be enrolled in PPGF to receive grants from them, but it helps you receive your donations quicker. Checks for unenrolled charities are distributed on a monthly basis within 75 days after the donation was received.
PPGF receives information about unenrolled charities through GuideStar, so you might be included in the charity directory if you haven’t opted out of information sharing with GuideStar. Learn more here.
If you don’t already have a PayPal business account, create one here.
You’ll need to create a login and share some basic information about your organization, including:
Then, you’ll certify and submit!
Next, head over to this site to give your account confirmed charity status. In addition to making you eligible to receive grants from PayPal Giving Fund, this status also gives you access to lower processing rates.
Plus, other donor-advised funds using PayPal will be able to award you grants through the platform as well, with no fees for your organization.
You can also create a Venmo charity profile to connect with donors there, too.
Verifying your account is easy! Simply link your bank account. If for some reason you aren’t able to link your account, you’ll need to provide additional information to prove that:
In either case, you’ll need to be verified before you are eligible to receive donations from PayPal Giving Fund.
Once your enrollment is verified, you’ll receive an email letting you know that you’re all set. You’re now eligible to receive grants from PPGF!
PPGF distributes funds to each charity’s PayPal account at the end of each month. You’ll receive your grant as a single payment, even if multiple donors have given toward your cause.
Read the full Donation Delivery Policy to learn more.
From every corner of the internet, fundraisers and donors have shared their opinions about PayPal Giving Fund – the good, the bad, and the ugly.
Some users report occasional errors with expected donations going missing or not being accounted for. Some donors have reported issues with additional, unexpected donations being withdrawn from their accounts, with no easy way to cancel the donations.
Here’s how PayPal Giving Fund is reviewed on various charity ranking sites:
Ultimately, most charities who have benefited from PPGF describe it as an easy and effective way to receive extra funding!
When PayPal Giving Fund was faced with their lawsuit, it caused quite a stir in the fundraising world. Now, years later, PPGF is a trustworthy option for donors looking for a convenient way to give money to charity – even though they may not always be able to control which charity their funds go to.
Whether you choose to enroll or not, funds from PPGF can be a nice boost to fundraising, but should not be counted on as a major part of your fundraising strategy.
Instead, build up your fundraising toolbox with Donorbox! Whether you’re launching a crowdfunding campaign, selling tickets to your next event, or collecting cashless, in-person donations, we’ve got you covered. Learn more and sign up today!
Still have questions? Let’s answer them!
If you need to confirm whether you’re enrolled in PPGF, you can check by reviewing your profile on the PayPal website or app. If you’re not enrolled, your profile will show a message stating that this profile hasn’t been reviewed yet.
You can also try to log in to your PayPal Giving Fund dashboard using your PayPal credentials.
While PPGF doesn’t charge charities or donors any fees, sometimes the partners directing donors to give via PPGF may charge fees for donations made through their platforms.
Note that currency conversion fees also apply when converting currencies.
If you’re enrolled in PPGF, you will receive a monthly grant (when you’ve received donations through the platform) directly to your PayPal account. If you aren’t enrolled, you’ll receive a check at least 75 days after the donation date, processed every month.
The short answer: no, not through PPGF. Grants are typically unrestricted so organizations can use them however they see fit.
If a donor really wants to, they can check with a charity before donating to see if the organization is willing to honor any restrictions.
Of course, since giving through PPGF doesn’t necessarily mean the donor’s gift is going to that specific charity, a better option would be to give through a donation form with designations.
Lindsey spent years wearing many hats in the nonprofit world. Whether she was helping arts nonprofits with their messaging and content, planning a fundraising gala, writing an NEA grant proposal, or running a membership program with over 400 members, she learned how to navigate – and appreciate! – the fast-paced world of fundraising. Now, she loves sharing those hard-earned lessons with the Donorbox community.
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