Starting a non-profit. New account or subaccount?

Gaddis
Contributor
Contributor

I'm starting up a non-profit organization. I will be using a PayPal button on that website for donations. I already HAVE a PayPal account. Can I have a second account for the non-profit? Also, do I have to get my 501c3 first, or can I still get donations before my 501c3 goes through? (It's going to take a while, because we are going to incorporate)

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skier
Advisor
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You can do things in what ever order that works for you.   Suggest not deleting an established account and then trying to recreate it again.   Half the the complaints one reads here are about issues that were self caused and could have been avoided.

 

Regards,

 

skier

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skier
Advisor
Advisor

If you already have a Personal Account, then you can also have either a Premier or Business Account.  What you cannot do is have the same bank account and/or credit card linked to the two PayPay Accounts.    As a legit non-profit organization, you should have a PayPal Business Account.   You should also consider a separate bank account and credit card, it will make accounting much easier down the road.   Using your personal bank account can get messy.  As for the  501c3 status, you must submit that info first in order to qualify for the lower fees, else you will be charged the current standard fees until you successfully complete the registration process.   Also note, you're better off getting your organzation totally setup first, the forming of the corporation first, etc., then opening your new PayPal Account.  Else going back and trying update your PayPal Account after the fact may cause a few hassles.  Not that you cannot do it that way but, you've been warned.

 

 

Regards,

 

skier

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Gaddis
Contributor
Contributor

Thanks skier. OK. I DO have my fictitious name certificate. I can start a business savings and checking account at the local B of A. You are saying I can start a "Business Account" at PayPal, using the local bank as my link. I just won't get a fee discount, until my 501c3 goes through. If it's a "hassel" like you say, to make changes later, can I just cancel the account and start over with a fresh one? Or will that be a hassel too, because I will want to use the same business name and links etc.

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skier
Advisor
Advisor

You can do things in what ever order that works for you.   Suggest not deleting an established account and then trying to recreate it again.   Half the the complaints one reads here are about issues that were self caused and could have been avoided.

 

Regards,

 

skier

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pmandichsc
New Community Member

Hi! Thanks for your great advice. I do have another question though. My non-for-profit submitted its application for 501c3 status, but it has not been approved to date. If we go ahead and set up the pay pal account w/o the 501c3 status approved and begin to accept donations I do understand that we will be charged the normal paypal fees. However, once the status is approved, can we request a refund for the overpaid amounts? 

 

Thanks so much!

Petar

 

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