An overview of PayPal charity fees
PayPal charges a fee for nonprofits to use its donation processing service. PayPal has set the fee at 2.9 percent of the donation amount, with a minimum fee of $0.30.
PayPal also charges a service fee of $2.95 for each donation processed.
The fee structure is designed to make it more cost-effective for nonprofits to use PayPal than other donation processing services. However, there are some limitations to this approach.
First, PayPal doesn’t offer a discounted rate for larger donations. Second, PayPal charges a fee even if the donation is processed as a direct donation, rather than being routed through a nonprofit’s account.
Overall, PayPal’s fees are reasonable, and they’re in line with the fees charged by other major donation processing services. However, there are other options available if you’re looking for a lower cost donation processing solution.