Does the 30 cent fee apply to donations under 30 cents?

neurolepsia
Contributor
Contributor

I consulted the FAQ area, as well as the automated "help" feature and could not find an answer for this.

I currently want to set up a donations page for my 25th birthday where I ask my friends for a 25 cent donation... using the "donate" button. Kind of a joke, but I thought it would be fun.

 

Is this worth it? Would I recieve the 25 cents entirely, or will a fee be charged?

 

Thanks in advance.

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4 REPLIES 4

usMichiGann
Contributor
Contributor

DONATIONS are for tax exempt organizations + not for individuals to use.  Therefore, an individual cannot set up a donationation for themselves in any amount OR any for any reason.  Happy 25th!

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neurolepsia
Contributor
Contributor

I see. Thank you, and thanks for clearing this up.

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PayPal_Jason
PayPal Employee
PayPal Employee

Hi neurolepsia-

 

Actually, you can use Donate buttons if you are not a charity, but for non-profits, they must register their accounts with that classification and provide some documentation to confirm that status.  In exchange for that, they receive a reduced fee structure.

 

In your case, if a person sends less than the cost of processing the transaction, you're notified of a payment, but no actual money posts to your balance.  You could issue a refund to the sender for the amount, though.

 

A couple of options:

 

1) With a donate button, you can't set up free payments.  However, if a sender has at least a quarter in their PayPal balance or funds their 25 cent contribution through a bank account, it's free for you to receive the quarter IF they toggle a Send Money transaction to Personal from Purchase.  There's a Gift classification there.  If they pay through credit card, you'll get hit with the charge.  That's a lot of clicking for a quarter...

 

2) Keep the 25 in the total and set up the donate button for $2.50 (at 2.9% +$.30, you'd clear about $2.12) Smiley Happy

 

In any event, Donate buttons may come in handy on some websites for things like Tip Jars where people can contribute to help cover the expenses of maintaining the site or saying "thanks" because they enjoyed something there.

 

Good luck and Happy Birthday!

 

Jason

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neurolepsia
Contributor
Contributor

Oh, ok... I was wondering whether or not it was allowed, because I know people who use PayPal for gifts or loans, as well as "tips" for their websites.

 

I understand, raising it to $2.50 makes much more sense, I'll consider doing that instead.

 

Thank you, Jason, that was very helpful and exactly what I needed to know.

 

And thanks for the birthday wishes! 😄

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