Setting up a PayPal for my club - how?

[davidbrunsting]

I have a club with a bank account that needs a PP button do members can pay their yearly dues on the website.  I have the bank account information for the club and the account has two different signatories.  I could easily get my name on there if needed. 

Keeping in mind I already have an account with PP, what is the best way to do this?  Thanks.

-Dave

[PayPal_Adrian]

Welcome to the boards!

I would recommend creating a separate Business account for the club.  When registering, be sure to put one of the signatories or your name - whoever will act as the contact person for PayPal - as the name, and the clubs name as the business name.  This prevents mixing the clubs business with your own, which prevents issues for both you and the club down the road.

Hope this helps,

Adrian

[XeoKaneo]

Hi there!

I am in a similar situation trying to set up a paypal business account so that members can pay their dues online. My concern is that I have heard stories about paypal putting a limit on the amount of money the account can hold until certain documents are acquired from the members on the account, which can be trouble when lots of people are paying dues. I was wondering what these documents are, and if these procedures can be taken care of from the beginning in order to avoid troubles in the future? Additionally, and this may be out of paranoia, but has there ever been cases of clubs being tracked down to pay taxes since they are accepting "business payments" through paypal? Finally, if there are variable club dues throughout the year, due to individual tournament fees and such, are there any suggested ways of taking care of these payments, such using the donation button or separate pay now buttons? Sorry about all of the questions, I am just trying to make sure that all of the bases are covered to prevent future headaches.

Thanks,

Freddy

[PayPal_Adrian]

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@XeoKaneo wrote:

. My concern is that I have heard stories about paypal putting a limit on the amount of money the account can hold until certain documents are acquired from the members on the account, which can be trouble when lots of people are paying dues. I was wondering what these documents are, and if these procedures can be taken care of from the beginning in order to avoid troubles in the future?  

Freddy

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I've actually never heard of us taking this particular type of action, although in some instances we may request additional documentation to confirm the ownership and security of the account.  In those instances, documents requested can vary and are unique based on the each account and the situation at hand.  I'm afraid they're isn't a "laundry list" that we could provide, or that you could provide in advance.  The first step is to ensure your contact information remains up to date, so that if we need to contact you, we can! 

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@XeoKaneo wrote:

Additionally, and this may be out of paranoia, but has there ever been cases of clubs being tracked down to pay taxes since they are accepting "business payments" through paypal?

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I haven't heard of this, either; however, I would urge any organization to consult with a tax professional in your area to ensure any necessary liabilities are met.

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@XeoKaneo wrote:

Finally, if there are variable club dues throughout the year, due to individual tournament fees and such, are there any suggested ways of taking care of these payments, such using the donation button or separate pay now buttons? Sorry about all of the questions, I am just trying to make sure that all of the bases are covered to prevent future headaches.

Thanks,

Freddy

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Extra questions are not a problem - I think it's excellent that you want to plan ahead!  You are on the right track here.  For those one off payments or special events, a Buy Now or Donation button would fit the need.

Hope this helps,

Adrian

[XeoKaneo]

Adrian,

We have another couple questions. Since we are a club sports team, which business type do we fall under? Also, what should we put for our category? Even though we are NOT non-profit, should we still put "non-profit" since we are not going to use the money for anything other than the group?

Thank you,

Frederick

[PayPal_Olivia]

Hi XeoKaneo,

I second Adrian's suggestion of contacting a tax professional to determine what your liabilities and responsibilities as a club are. If your club is registered with some larger organization that is itself registered as non-profit, you also might want to communicate with them. Since you'll be collecting funds without intention of profit for the purposes of funding your club's activities, they may be able to help guide you as well.

I hope this helps!

Olivia