Since launching Grant Payments in conjunction with PayPal in August of 2022, National Philanthropic Trust (NPT) has successfully disbursed over $65 million in grants electronically. I am honored and privileged to work with NPT, and am proud to be leading this project. By fundamentally changing the way grants are disbursed, electronic Grant Payments is good for charities, donors, grantmakers, and the planet!
Read the update below from Tom Furstenberg, NPT's Sr. Manager of Data Analytics and Integration about the success of this solution.
Reprinted with permission from National Philanthropic Trust.
MAY 31, 2023
Nonprofits Receive over $65 Million in Grants from NPT Through PayPal Grant Payments
Author: TOM FURSTENBERG, SENIOR MANAGER OF DATA ANALYTICS & INTEGRATION
Since debuting in August 2022, National Philanthropic Trust (NPT) and PayPal have already electronically disbursed over $65 million in grants to charitable causes through PayPal Grant Payments. Donors recommend these grants from their donor-advised fund (DAF) accounts to support nonprofit missions across the country.
The Benefits of PayPal Grant Payments
PayPal Grant Payments allows DAF sponsors, like NPT, to streamline the grant process and deliver funds to nonprofits in a secure and timely manner. PayPal Grant Payments is completely free for grantees, and the system takes no percentage of the transfers or fee. This means that every grant dollar issued through PayPal Grant Payments from a DAF account goes directly to the eligible charity.
When recommending grants, donors can choose to share personal information with the nonprofit. PayPal Grant Payments securely transmits this information through the portal, so donors’ personal information is kept safe. In the portal, PayPal Grant Payments provides all of the necessary grant information to organizations right when they’ve logged in to their dashboard. Fundraising staff can easily export grant data from PayPal Grant Payments into their accounting and/or CRM systems too.
This paperless, environmentally-friendly grantmaking process also eliminates the stress of waiting and uncertainty that can often accompany mailed checks. After a nonprofit accepts a grant, funds are quickly transferred to their PayPal account. To date in 2023, a majority of NPT’s grants completed through PayPal Grant Payments have been in a charity’s account within 24 hours.
How to Enroll Your Nonprofit for PayPal Grant Payments
Organizations that sign up for PayPal Grant Payments get the full value of the grants they receive and can put the funds to use immediately. For nonprofits that are focused on urgent matters, such as responding to natural disasters, world events or providing ongoing COVID-19 relief, the immediate access to these funds can be crucial.
For those that have not yet signed up, all that is required is to register and verify the organization’s nonprofit status using the EIN or by simply uploading documentation. Account approval typically occurs within 3-5 days.
Nonprofits can accept grant payments from NPT now, Vanguard Charitable in the near future, and a growing roster of participating grantmaking organizations as the year progresses.
With millions of dollars in grants already safely and efficiently transferred via PayPal Grant Payments, a world of giving and receiving is right at your fingertips.
If you have any questions about PayPal Grant Payments or about your donor-advised fund account, please reach out to [email protected].
About the Author
Tom Furstenberg is NPT’s Sr. Manager of Data Analytics & Integration. He leads the team of developers & engineers that built NPT’s PayPal integrations and continues to strive for a more connected DAF experience.
NPT does not provide legal or tax advice. This blog post is for informational purposes only and is not intended to be, and shall not be relied upon as, legal or tax advice. The applicability of information contained here may vary depending on individual circumstances.