Personal or Business for fundraiser

BeerNerd14
New Community Member

I am holding a fundraiser for a charity campaign I run every year for the company I work for. I would like to add PayPal as a way for people to pay me for their raffle ticket that they can't pay for with cash or check. The account will not be used for collecting money for any type of goods sold. We do not need to give anyone else access to the account. Which account should I use, business or personal? I already have a personal PayPal account. But, I wasn't sure if there was a maximum amount that could be accepted. The amount each individual could send would not exceed $90. But, collectively to total amount could reach over $10,000. 

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2 REPLIES 2

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@BeerNerd14 

 

PayPal accounts aren't like they used to be. One can't simply just create one and collect money for whatever the reason. New rules and regulations now govern these virtual financial accounts and info have to be verified and legit. I say this to explain the brevity and responsibility required now to open a PayPal account. PayPal security will check your Identity and will ask for documents eventually if they see funds come in like a flood so be prepared and not mad or irritated as I see so many that come in here to fume about why PayPal limited their account and asking for this or that document.

 

With that out of the way, if you run this fundraiser thing yearly and running it in a business like way, then go for the business account. If you want to get confirmed as a charity for the account, you can so you could get the benefits of being a charity account like lower PayPal fees for accepting donations. Or it can just be straightforward individual business account and indicated as for charity in the business information section in the account profile and have people through the use of donation buttons. There may be personal tax responsibilities if the account is under your name as an individual business account. Not a registered company.

 

So you have a decision to make. Accepting money online brings a level of complication to this project.


Kudos & Solved are greatly appreciated. 🙂
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kernowlass
Esteemed Advisor
Esteemed Advisor

@BeerNerd14 

 

Look into setting up a money pool?


Advice is voluntary.
Kudos / Solution appreciated.
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