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Paypal and Non Profit forms needed

Forums: General Discussion
Created on: 03/16/09 09:24 AM Views: 1612 Replies: 7
Monday, March 16, 2009 at 9:24 AM

Has anyone had problems with Paypal sending a letter and flagging your account for more information regarding a non-profit, EIN and a cancel check. We set up the account at the bank with a EIN number, then verified the bank account with the deposit and then received the further follow up flag on my paypal account. We don't have a non-profit...is it required to have one for the reunion purpose if we already have the EIN number??
Leslie
Port Charlotte High School
pchs1984.com

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Monday, March 16, 2009 at 10:35 AM - Response #1

I was having the same problem, and I didn't have the paperwork to show we were non profit, so I ended up having to call them and then I got it squared away. Although paypal still says I'm going to have to verify something else in order to receive more that $500 in a months time

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Monday, March 16, 2009 at 10:40 AM - Response #2

Thanks for answering my question...I guess that is what we are going to have to do.
Have a great reunion!
LeslieCool

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Monday, March 16, 2009 at 12:23 PM - Response #3

We had the same problem. I faxed them a letter indicating that we are a reunion committee and that is why I picked non-profit. Then I went into our acount and changed our business type to services. It was much easier than trying to get all the stuff they wanted. I made a call to them once but it took me so long to finally get thru after being bounced around that it wasn't worth my time. Good luck with it.

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Tuesday, March 17, 2009 at 12:47 AM - Response #4

Hi, I had the same issue. I ended up sending them a voided check from our bank account and our EIN # that I set up for our Reunion. I also had to call them to take off the daily transfer limit from our paypal account to our bank account. They had a limit of $500 a day and if you start getting more registrations and funds that might cause an issue.

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Wednesday, March 18, 2009 at 8:14 PM - Response #5

Amy - how did you get Paypal to lift your transfer limit of $500? (Was it $500/day or $500/month?) I just opened a Paypal business acct for our reunion and the guy I just spoke to from Paypal said he couldn't lift the limit over the phone.

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Wednesday, March 18, 2009 at 9:05 PM - Response #6

Hi Melissa,it might have been $500/month (that sounds more reasonable). I followed these steps from Paypal

Here's how you can lift your withdrawal limit.

Log in to your account.
Click the My Account tab.
Click the View Limits link next to the Balance Information.
Click the Lift Limits link.

It will tell you how to lift the limits.

Hope that helps!
Amy

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Tuesday, March 24, 2009 at 5:25 PM - Response #7

We have been going around and around with PayPal over the "Determination Letter 501(c)" that they insist they need for us to organize as a non-profit exempt. We filed our EIN under non-profit exempt "Social Club", which is a 501(c)(7) organization. In order to get a Determination Letter from the IRS, you have to file a form 8718 and pay a $300 fee. We have told them less than 10% of our income will come from donations and the remaining 90% will be from dues. We're waiting on their "resolution" of this. We have also emailed the class to request they begin sending checks. PayPal has placed the $500 a month limit on us and we can't work with that. I saw the response to resubmit our status as "services" rather than "non-profit", but I believe they will ask us to charge tax on our income if we aren't a non-profit. I've even talked to IRS agents who have no idea why PayPal is causing us so much trouble. Their suggestion (and mine) is to NOT use PayPal. Good luck!

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