The Donation Button

callumjhackett
Contributor
Contributor

PayPal is asked this again and again, and I have to repeat the question because there is not only conflicting information elsewhere online, but on PayPal's own website. The answer seems to change depending on what mood they're in, so please only respond to this if you are certain of company policy.

 

I have a blog and I want to be able to accept payments from readers who like my writing and are feeling generous. I'm an individual, not a company or a non-profift, I'm not offering a product, and it's not a magazine, so I need a button that provides one-off payments of an amount chosen by the reader. The only button that does this is the donation button, but can I use it?

 

Many blogs I frequent, some of which have hundreds of thousands of readers, use the donate button, making it explicit that it goes towards their writing costs, not a charity. Furthermore, on these forums, a moderator said to a customer in 2012 that "you do not have to be a charity in order to use the donate button", you just have to have a premier or bussiness account.

 

Yet when I go to actually make the donate button, I'm told that "this button is intended for fundraising. If you are not raising money for a cause, please choose another option. Not-for-profit organisations must verify their status to withdraw the donations they receive."

 

So which is it? Can I use it, or can I not? And if the last quote is true, then why is it that countless websites which are clearly not fundraising for charitable causes are still permitted to use the button?

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snowshoe
Frequent Advisor
Frequent Advisor

Anyone can use Donation buttons.   Yes, PayPal does have some conflicting info out there. The main difference is being a 501(c)(3) registered nonprofit or not.  If not, you pay the standard processing fees, 2.9% plus $.30 per transaction, if a 501(c)(3) registered nonprofit, you can get approved for a lesser fee.  One note is that the tax laws have changed. The funds you receive are reported to the IRS as earned income, (anything over $600 for 1099 forms) regardless if you're an individual or a business. 

 

Basically all you need is either a Premier or Business Account and make sure that your account is verified, meaning you have linked and confirmed both a bank account and credit card.  You can then setup your item button code and do as you like.

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snowshoe
Frequent Advisor
Frequent Advisor

Anyone can use Donation buttons.   Yes, PayPal does have some conflicting info out there. The main difference is being a 501(c)(3) registered nonprofit or not.  If not, you pay the standard processing fees, 2.9% plus $.30 per transaction, if a 501(c)(3) registered nonprofit, you can get approved for a lesser fee.  One note is that the tax laws have changed. The funds you receive are reported to the IRS as earned income, (anything over $600 for 1099 forms) regardless if you're an individual or a business. 

 

Basically all you need is either a Premier or Business Account and make sure that your account is verified, meaning you have linked and confirmed both a bank account and credit card.  You can then setup your item button code and do as you like.

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