Donation for non charity

[redhotsalbeads]

I would like to take donations on behalf of a young boy who has recently lost his parents. He is not a charity or a non-profit organisation, so I want to collect funds "informally" to give to his family.

Can I do this just by setting up a donation button? Not sure if I was breaking any rules? I think I need to get permission from the boy's guardians/family? Is this correct - if so, what form should this take? Would an email from them be acceptable? Thanks

[snowshoe · Accepted solution]

Here's what you need to be aware of as PayPal's Policies have changed:

In the past this was not an issue as probably 1000's of people currently have donation buttons on their web sites and blogs and they are not nonprofits or registered 501(c)(3) organizations, just individuals.   Things have changed as there's new tax laws to deal with, accounts must be verified, etc.   

As stated by PayPal.
"This button is intended for fundraising.   If you are not raising money for a cause, please choose another option.   Nonprofits and or 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."

One easy option is to use a Buy Now item button.   You can code it so an amount can be entered right on the PayPal Screen.   You can also use the the Shipping Override Variables so as not to charge any shipping if you have a shipping method setup for other purposes.   Using a Buy Now type button allows people to give you funds without having a PayPal Account.    Note, you would still pay the standard transaction processing fees, same as selling an item and you must have either a Premier or Business Account, a Personal Account won't work.

Another easy option would be to have people use the send money feature.   Of course they would have to have a PayPal Account and if they send the funds as a gift assuming they don't use a credit card, there would be no fees unless the funds are being sent out of the country.

Some other things to consider, you're subject to the standard processing fees and tax reporting.

[redhotsalbeads]

thank you

[nerdettedesigns]

Hey! If I were you, I would just email Paypal's customer service and ask. They aim to get back to you within 24 hours. I had the same question/concern last night, so I emailed them, and this morning they sent me back this:

"Even if you do not raise funds it is ok to add a donation button. As long as your funds are not more than $10,000 you can add the button."

This was after I told them that I was *NOT* a non-profit or raising funds, I just wanted to put a donation button on my blog where I offer free artwork in exchange for donations... So you should be fine. But if you would like record that it's ok for you to do this, just email them and you'll have a copy of their reply in your inbox. 

Cheers!