Clarification on unverified organization withdrawing donations ($10,000)

PITmanStats
Contributor
Contributor

I spoke to a PayPal rep (Dameon) on 06/24/2012 about being able to use a Donate button my web site with the term "Buy me a cup of coffee" as a generic "donate money to show your appreciation". He stated that I could do that, no problem, and that I would be able to receive/withdraw funds from those donations.

 

However, I was creating another Donation button, and I saw this:

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Note: This button is intended for fundraising. If you are not raising money for a cause, please choose another option. Nonprofits must verify their status to withdraw donations they receive. Users that are not verified nonprofits must demonstrate how their donations will be used, once they raise more than $10,000.

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So, do I have to raise $10,000 before I am able to withdraw funds from my PayPal account into my bank account? And do I have to prove to PayPal that I am using the funds for a particular purpose? (don't worry, I am)

 

Or is that saying, if I raise LESS than $10,000 then I am fine to withdraw; but if I raise MORE than $10,000 that is when I have to prove where it's going?

 

Any clarification would be appreciated. Thank you!

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snowshoe
Frequent Advisor
Frequent Advisor

Here's my take on the guidelines:

 

Anyone can use a Donation Button and you can withdraw the funds after they are deposited into your account, you are also subject to the regular transaction processing fees and a ceiling limit of $10,000.   Only the registered non-profits or 501(c)(3) status are eligible for the discount rate.  If your plan is raising more than $10,000, you need to be a registered 501(c)(3) non-profit.

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snowshoe
Frequent Advisor
Frequent Advisor

Here's my take on the guidelines:

 

Anyone can use a Donation Button and you can withdraw the funds after they are deposited into your account, you are also subject to the regular transaction processing fees and a ceiling limit of $10,000.   Only the registered non-profits or 501(c)(3) status are eligible for the discount rate.  If your plan is raising more than $10,000, you need to be a registered 501(c)(3) non-profit.

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