Online payment option for nonprofit?

[school17777]

I recently became the treasurer for a youth sports club.  It is a nonprofit organization.  We currently use PayPal to collect registration fees. 

The problem is to switch PayPal to my name as the treasurer, I have to send them my ssn card and drivers license.  I’m not willing to do so and no one else on the board wants to either.  The previous treasurer wants his name removed ASAP and is upset I haven’t already done so. 

So, we are trying to figure out what online payment option there is that won’t require a board member to use their own personal identification to setup.  The club has a federal ein.

Any ideas?  Registration starts in two weeks!

(I have very limited time the next couple of days to hop on here, just in case it appears I’m abandoning the thread, I’m really not!)

[Pawz4me]

I probably have no business answering this because I have zero experience collecting stuff like that, but what about apps like Apple Pay or Venmo? DS19 just paid the dues for one of his college clubs via Venmo. I don't know what kind of identification beyond a bank account routing number, is required.

[Lanny]

From the title of your thread,I was going to suggest PayPal but I see that's what your group is using now.  I probably trust PayPal at the very highest level, based on my experiences with them, over the years. And I did send them a copy of my U.S. Passport some years ago. 

Obviously, there are other people who have had bad experiences with PayPal, as with any company that has millions of customers, but mine have been very positive.

There would be a VERY LONG list of companies and organizations, that I, like you, would not send my SSN or DL to, but if requested, I would send that to PayPal.

I believe that PayPal operates under Federal regulations, somewhat like a bank, and that they must have your SSN, bank account data, etc.

 

[Um_2_4]

Is the PayPal acct set up as a business or non profit account? If not, close that account and open a new one.

I would expect they need a dl to know who should access the account, but your ein should suffice.

I found this info from PayPal https://www.paypal.com/us/smarthelp/article/how-can-i-get-my-nonprofit-set-up-with-paypal-to-accept-donations-faq1068

[school17777]

20 hours ago, Um_2_4 said:

Is the PayPal acct set up as a business or non profit account? If not, close that account and open a new one.

I would expect they need a dl to know who should access the account, but your ein should suffice.

I found this info from PayPal https://www.paypal.com/us/smarthelp/article/how-can-i-get-my-nonprofit-set-up-with-paypal-to-accept-donations-faq1068

 

Thanks for that.  We are set up properly.  You still have to have a person attached to the account and to change the person, they require dL, Ssn card, and letterhead verifying that person is authorized to be on the account.

[school17777]

On 10/3/2018 at 7:02 AM, Pawz4me said:

I probably have no business answering this because I have zero experience collecting stuff like that, but what about apps like Apple Pay or Venmo? DS19 just paid the dues for one of his college clubs via Venmo. I don't know what kind of identification beyond a bank account routing number, is required.

 

The business has to have a PayPal account to use Venmo.  Thanks for the suggestion though.

[Um_2_4]

3 hours ago, school17777 said:

 

Thanks for that.  We are set up properly.  You still have to have a person attached to the account and to change the person, they require dL, Ssn card, and letterhead verifying that person is authorized to be on the account.

I get all that except the ssn, weird. What about setting up like chase quickpay instructions or whatever bank you use and people can just send e-payment to your bank account directly. Might be worth asking your bank about. Most people pay bills online these days.

So glad 4-H we mostly deal with cash and personal checks.......I had thought about setting up paypal for supply fees, but I'll deal with envelopes for now

[J-rap]

I doubt any of these would work, but here's a list of apps I found:

https://www.digitaltrends.com/mobile/best-money-transfer-apps/

My dh is president of a small non-profit club in town.  We did open a PayPal account linking his name to it, enabling us to then transfer the money to the club's bank account.  (Which is then managed by the treasurer.)  I've had lots of experience with PayPal over the years and do trust them as much as I trust any online transaction, but I understand that some people don't care to do things that way.

Does the club have its own local bank account somewhere?  I wonder if there's anyway you could set up an online deposit system with that bank?

[school17777]

1 hour ago, Um_2_4 said:

I get all that except the ssn, weird. What about setting up like chase quickpay instructions or whatever bank you use and people can just send e-payment to your bank account directly. Might be worth asking your bank about. Most people pay bills online these days.

So glad 4-H we mostly deal with cash and personal checks.......I had thought about setting up paypal for supply fees, but I'll deal with envelopes for now

 

Yes, this is exactly what we want - go directly to the bank.  Thanks!  I can stop by this afternoon.

[school17777]

4 hours ago, J-rap said:

I doubt any of these would work, but here's a list of apps I found:

https://www.digitaltrends.com/mobile/best-money-transfer-apps/

My dh is president of a small non-profit club in town.  We did open a PayPal account linking his name to it, enabling us to then transfer the money to the club's bank account.  (Which is then managed by the treasurer.)  I've had lots of experience with PayPal over the years and do trust them as much as I trust any online transaction, but I understand that some people don't care to do things that way.

Does the club have its own local bank account somewhere?  I wonder if there's anyway you could set up an online deposit system with that bank?

 

We do have a bank account at a local bank.  Of course they were short staffed today and couldn’t talk.  But, the one lady thinks they have a merchant service that might work.  As a business, we can’t use the bank transfer option they have for personal use.

[WendyLady]

This does not solve the problem, but I wonder if it would work to attach the account to someone who has been and is planning to be with the organization for a really long time, so it doesn't have to change every year or two?  In my experience as someone who moves all the time, there seem to be people who stick around forever in youth sports, long after their kids are grown, etc. 

My thought is that if you think you will just be involved this year as treasurer, then change again, the organization should have someone else on the account - the president or founder or board member who will be there forever.  Is that a possibility?  I just hate for you to do all the work and then move on from the org and that person has to figure it out again next year. 

Just a thought!  

 

[school17777]

1 hour ago, WendyLady said:

This does not solve the problem, but I wonder if it would work to attach the account to someone who has been and is planning to be with the organization for a really long time, so it doesn't have to change every year or two?  In my experience as someone who moves all the time, there seem to be people who stick around forever in youth sports, long after their kids are grown, etc. 

My thought is that if you think you will just be involved this year as treasurer, then change again, the organization should have someone else on the account - the president or founder or board member who will be there forever.  Is that a possibility?  I just hate for you to do all the work and then move on from the org and that person has to figure it out again next year. 

Just a thought!  

 

 

That was my though too.  There’s only three of us left after this year. The other two aren’t willing to give their info either.

According to the past treasurer, who is a CFO in real life, that’s in violation of our charter.

[whitestavern]

A nonprofit I belong to accepts Square. I do not know what's involved to set the account up however. 

[WendyLady]

1 hour ago, school17777 said:

 

That was my though too.  There’s only three of us left after this year. The other two aren’t willing to give their info either.

According to the past treasurer, who is a CFO in real life, that’s in violation of our charter.

Oh boy!  That really is frustrating!!  

[LucyStoner]

Banking regulations require ALL of these services, Paypal, Square etc to ask for the SSN of one organizational officer.  It should be the Executive Director or the Board President.  I strongly urge my clients to NOT have it be the Board Treasurer.  

If you use QuickBooks online, you can send invoices and receive payments.  Non-profits can access QuickBooks Online for $50 a year via TechSoup.  The fees are on the high side for credit cards but free for bank transfer/ACH.  I am assuming that your bank has the SSN of the signers on the organizational checking account.  Again, it’s part of federal regulations for banks.  It’s not a PayPal or bank rule:  it is required of them by the government.  

If you don’t want to give your own SSN to the bank, then you should not serve as an officer of the non-profit.  Just decline to volunteer or volunteer in a non-signatory role.  

 

Edited October 5, 2018 by LucyStoner

[LucyStoner]

2 hours ago, school17777 said:

 

That was my though too.  There’s only three of us left after this year. The other two aren’t willing to give their info either.

According to the past treasurer, who is a CFO in real life, that’s in violation of our charter.

 

It’s not your charter that is requiring someone to give their SSN, it is banking regulations.  

Someone has to give their personal SSN to a bank of some kind or you can’t have a bank account.  

This got lax for awhile but since 2004 or thereabouts it’s been a big deal.  Banks have to know their customers and what’s more, prove they are real.  

When your group got a tax id number, the IRS collected the SSN or ITIN of someone attached to the organization.  

[Carrie12345]

7 hours ago, LucyStoner said:

Banking regulations require ALL of these services, Paypal, Square etc to ask for the SSN of one organizational officer.  It should be the Executive Director or the Board President.  I strongly urge my clients to NOT have it be the Board Treasurer.  

If you use QuickBooks online, you can send invoices and receive payments.  Non-profits can access QuickBooks Online for $50 a year via TechSoup.  The fees are on the high side for credit cards but free for bank transfer/ACH.  I am assuming that your bank has the SSN of the signers on the organizational checking account.  Again, it’s part of federal regulations for banks.  It’s not a PayPal or bank rule:  it is required of them by the government.  

If you don’t want to give your own SSN to the bank, then you should not serve as an officer of the non-profit.  Just decline to volunteer or volunteer in a non-signatory role.  

 

We had issues with Quickbooks bank transfer because we don't have a physical address.  I do believe there was an option for additional steps/info in that case, but I was ticked off at the entire process by then.  We ultimately chose to go with Paypal. Our identifying information is already all over our non-profit corporations documents as part of founding a non-profit corporation, so it just seems par for the course for *us.  If I were just a temporary volunteer, I might not feel as "whatever" about it.

[school17777]

On 10/4/2018 at 10:00 PM, LucyStoner said:

 

It’s not your charter that is requiring someone to give their SSN, it is banking regulations.  

Someone has to give their personal SSN to a bank of some kind or you can’t have a bank account.  

This got lax for awhile but since 2004 or thereabouts it’s been a big deal.  Banks have to know their customers and what’s more, prove they are real.  

When your group got a tax id number, the IRS collected the SSN or ITIN of someone attached to the organization.  

 

The charter is not stating about giving the SSN, the former treasurer says our charter states the person functioning in the role of treasurer (and a more former name for the role) is the one who has to provide their identification on the accounts.

[school17777]

On 10/4/2018 at 10:00 PM, LucyStoner said:

 

It’s not your charter that is requiring someone to give their SSN, it is banking regulations.  

Someone has to give their personal SSN to a bank of some kind or you can’t have a bank account.  

This got lax for awhile but since 2004 or thereabouts it’s been a big deal.  Banks have to know their customers and what’s more, prove they are real.  

When your group got a tax id number, the IRS collected the SSN or ITIN of someone attached to the organization.  

 

Yes, the former treasurer gave his information out.  Now that I have all that paperwork, I have all his personal information.  And then it will get passed on to someone else when I’m finished in this role.  

[school17777]

On 10/4/2018 at 9:29 PM, LucyStoner said:

Banking regulations require ALL of these services, Paypal, Square etc to ask for the SSN of one organizational officer.  It should be the Executive Director or the Board President.  I strongly urge my clients to NOT have it be the Board Treasurer.  

If you use QuickBooks online, you can send invoices and receive payments.  Non-profits can access QuickBooks Online for $50 a year via TechSoup.  The fees are on the high side for credit cards but free for bank transfer/ACH.  I am assuming that your bank has the SSN of the signers on the organizational checking account.  Again, it’s part of federal regulations for banks.  It’s not a PayPal or bank rule:  it is required of them by the government.  

If you don’t want to give your own SSN to the bank, then you should not serve as an officer of the non-profit.  Just decline to volunteer or volunteer in a non-signatory role.  

 

 

The bank does have my ssn, but I did that in person, not through email, mail, or scanning online.

eta: I said to the former treasurer I never knew I would have to provide my ssn to PayPal in a volunteer position for a nonprofit organization when I accepted the position.  PayPal does not have my ssn for my personal account.

Edited October 7, 2018 by school17777

[geodob]

For people to deposit directly to your bank account.  You just need to provide them with the BSB number and the Account number, of your bank account.

[LucyStoner]

It’s probably more secure to give your SSN to Paypal than to your local bank in person.  For example, PayPal would not pass your SSN onto the next treasurer like the bank has apparently done.  

I reccomend only accepting checks (or bill pay) or using the invoicing options in QuickBooks.  

[school17777]

3 hours ago, LucyStoner said:

It’s probably more secure to give your SSN to Paypal than to your local bank in person.  For example, PayPal would not pass your SSN onto the next treasurer like the bank has apparently done.  

I reccomend only accepting checks (or bill pay) or using the invoicing options in QuickBooks.  

 

The bank hasn’t passed on the ssn, I have the original paperwork to set-up the club as a non-profit and the former treasurer’s ssn is on that federal form.  I am going to ask him if he wants me to black it out as I can’t imagine that we would need it in the future.

[school17777]

3 hours ago, geodob said:

For people to deposit directly to your bank account.  You just need to provide them with the BSB number and the Account number, of your bank account.

 

This is our second option, if the online registration company we are using doesn’t pan out.