Yes, nonprofit organizations can use PayPal to collect donations.
However, PayPal was built for small businesses, not designed with nonprofits in mind. PayPal doesn’t offer any donor management capability.
Using PayPal for more advanced fundraising needs, such as event ticketing or membership, requires manual work.
Yes, PayPal does charge a fee for nonprofits but offers a discounted transaction fee to eligible nonprofit organizations. If we’re looking for a fee-free donation management solution, Zeffy is the first and only 100% free fundraising platform for nonprofits.
PayPal charges a discounted transaction fee of 2.2% + $0.30 per domestic transaction for eligible nonprofits, versus 2.9% + $0.30 per transaction for other organizations.