One of the most simple means of transferring cash online is through digital platforms like PayPal. A donation can be completed, without having any real cash exchange or the hassle that comes with it. A balance donation, donations made through credit cards, or ACH funding, can all be executed through PayPal.
Enrolling in the PayPal Giving Fund allows candidates to receive donations through programs, with PayPal, eBay, GoFundMe, Bundle, Humble, and others. Even though PayPal is not a specialist when it comes to political donations, it does provide certain tools for candidates looking to raise funds for their campaigns. Through PayPal's political donations, politicians can arm themselves with the funds that are crucial to their campaign and eventual election.
Steps to enroll for a PayPal account:
Enrolling is easy, and involves just three simple steps:
- Sign up for a PayPal business account: The campaign needs to be signed up for a PayPal business account. IIn the ‘business type’ section, select ‘nonprofit’ and choose ‘political’ in the subcategory. This account shall be used by PayPal to pay the funds that have been received for the campaign, once the enrollment process concludes. If the campaign already has a PayPal business account, this first step can be skipped.
- Provide confirmation: The second step is to confirm that the PayPal business account belongs to the campaign. Through this process, PayPal verifies that the account does indeed belong to the candidate’s campaign. Candidates need to ensure that they keep the bank statement and EIN for the campaign handy, and, if need be, is prepared to provide the official IRS documentation. This check takes around three business days to conclude, and any notifications are communicated through the account dashboard or the provided email.
- Complete the enrollment process: Lastly, using their confirmed PayPal accounts, candidates have to enroll with the Fund. This will permit the campaign to benefit from the various PayPal Fund programs, and receive any due funds according to PayPal’s donation delivery policy.
Benefits of using PayPal for political donations and funding:
Funding buttons can be added on websites:
Setting up a donation option on a website is fairly simple, and requires no technical knowledge. Candidates need to simply log in to their PayPal accounts, copy the button script that they want to use, and then paste it on the website where they wish to place the button. Doing this will form a direct link to PayPal, for all purchases. A button shall be generated, containing the desired text.
Candidates can transfer the donated funds to a local checking account:
Let us assume that the candidate receiving the donations has his or her PayPal account linked to his/her checking account. Funds that are received can be directly shifted to the candidate’s checking account. Under certain situations, the entire procedure might take around three to four days. The initial verification might take a bit of time, but, once it is done, funds received through PayPal can be transferred to any account.
The cash can be extracted using a PayPal debit card:
To make funds liquid and accessible, PayPal issues its own debit cards that can be used to access the account balance instantly. Even though users have to pay a fee for some specific actions, they also receive a cashback of 1%, on every purchase executed through the account. For a campaign trying to raise funds, this would mean that every donation has a bit of extra value.
The donors do not need to have PayPal accounts:
Clicking on the donation button will redirect donors to a screen which will allow them to pay directly. This means that, to make a donation, users do not need to sign up for a PayPal account. Just like in any other safe online transaction, the debit or credit card details will have to be entered, and the intended recipient will get the money.
Please, note that the onus for collecting donor data, such as occupation and employer, is on your organization. You will also be responsible for gaining permission from donors, regarding sending any marketing material in the future.
In conclusion, using PayPal for political donations allows campaigners to maximize donations, while also making the entire process easy and straightforward, allowing them to focus on the core operations and planning of the campaign. You will also be responsible for gaining permission from donors, regarding sending any marketing material in the future.