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Help with CC/Paypal question

Forums: General Discussion
Created on: 08/19/14 12:11 PM Views: 1051 Replies: 6
Tuesday, August 19, 2014 at 12:11 PM

Hi All! In the process of planning a multi class reunion for Oct. Was just informed by the credit card service that I was using that all transactions would be reported under my social security number as income. (I filled out the application personally since we do not have our school's Tax ID number). Went to my accountant to check and referred to the fact that I used Paypal 6 years ago and that was not reported. His response was that they did not report 6 years ago, but now it is a requirement. Does anyone have a work around or suggestion for me OTHER than doing mail in of checks/cash? I REALLY don't want to go backwards with regard to how I am handling payments. Thank you in advance!

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Tuesday, August 19, 2014 at 1:34 PM - Response #1

Here's the rule

Quote:

PayPal is required to report gross payments received for sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year.

See LINK

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Wednesday, August 20, 2014 at 10:10 AM - Response #2

That you, Jack. I didn't know that rule. Jennifer, how large approx. is your group? The reason I ask is this: I used my PayPal account which was liked to my checking account but under the name of my school and grad year. This seemed to be allowable. But I must tell you I, personally, can't donate under my name to the site. It comes back as invalid and stated (you cannot donate to your self".
I solved that by having an alumnus donate for me; then I gave her the money.
Barbara

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Saturday, August 23, 2014 at 5:06 PM - Response #3

You should be using a Fed. ID specifically for your group (class) & the website. Also need to get tax exempt ID from your state (in KS, anyway; check with your state's revenue dept.) We used the electronic payment system on classcreator last summer without issue. It takes credit & debit cards and deposits are made electronically to your group's bank account. Easiest to keep all your accounting out of personal accounts, including PayPal.

We formed an Alumni Association to run all of our business through for the All School Reunion. The school isn't involved financially with our group. Keeping it simple!

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Edited 08/23/14 5:09 PM
Saturday, August 23, 2014 at 6:42 PM - Response #4

Thank you, Marilyn. That might be good for certain states or large schools, but our graduating class had less than 75 alumni. Here it costs $500+ to become non-profit. It wasn't worth it for a reunion of less than 30 alumni. Graduating in 1963 made us still 'war-babies' (lower population). The baby boobers (with large classes didn't start until 1946 (d.o.b.). Plus mine was an even smaller Catholic girls' high school.
Barbara

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Edited 08/23/14 6:59 PM
Saturday, August 23, 2014 at 10:05 PM - Response #5

Federal non-profits cost upwards of $500, but states aren't usually that much (less than $30 a year in KS). You can get a EIN without having the non-profit status. I would still recommend a separate account for your class reunion funds and use the classmates.com electronic payment system.

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Saturday, August 23, 2014 at 10:16 PM - Response #6

I think you meant classcreator.com electronic payment system Very Happy

The whole issue boils down to how much money is involved. Anything below $10K is below the significance radar.

A separate bank account is definitely recommended in all cases.

If one wants to cross all the T's to follow all the "rules" it gets pretty complicated. You also have to file all the appropriate State & Fed tax forms Exclamation

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