Non-profit transaction fees

[woodp]

I'm the treasurer for two different California-based 501(c)7 tax-exempt organizations. About a month ago I received one of those ominous PayPal notes that one account was being restricted until I provided additional documentation. A few days after the documentation was provided, a second, less ominous note was received that said :

• The account restriction was being lifted, and
• Our transaction fee was being reduced to 1.9% plus $.0.30.

Great news! So now I'm trying to get the same rate for the second group, but for the life of me I can't figure out what to request and where to request it. Anyone else been down this path?

[sandypurins]

I found the following response in PayPal's Help Center...

How does PayPal approve charities and nonprofit organizations?

If you are collecting donations as a charity or nonprofit organization, your account’s nonprofit status must be confirmed.
     
To begin the approval process, submit contact information, business URL, and a brief business summary to compliance @ paypal.com.
     
We might request that you provide:

• Proof of your tax-exempt status or registration from a regulatory body
• A copy of a bank statement or a voided check in the name of your organization

The exact documents required are based on the regulatory laws for your country. We’ll contact you if we need additional information.

Donations that are not associated with a charity or nonprofit organization are not subject to these requirements, but all donation transactions are subject to review and must comply with all of PayPal’s Acceptable Use Policies.

[woodp]

Thanks but you misunderstood ...

Two CA corporations, both 501(c)7 and 23701g approved, both have been through the compliance ringer, and both are approved at PayPal as "non-profits."

• One's rate is 2.9% plus $0.30.
• The other's is 1.9% plus $0.30.

As I said, the one with the lower rate happened without my intervention. So how/who/what do I do to get the lower rate for my other tax-exempt organization?

[sandypurins]

Try sending your request to the compliance email address.