PayPal launches Grant Payments
By Edlyn Cardoza
PayPal Holdings, Inc., in partnership with National Philanthropic Trust (NPT) and Vanguard Charitable, announced Grant Payments. This new product enables Donor-Advised Fund (DAF) sponsors, community foundations and other grantmakers to deliver grants to charities quickly and electronically via PayPal.
Grant Payments will enable charities to receive grants shortly after the grantmaker has approved the funds. Both grantmakers and charities will have access to all available grant details, including donor information when provided, via a PayPal dashboard. Eligible and participating charities have been vetted per PayPal’s strong compliance standards.
“PayPal is committed to offering safe, secure and seamless products and services that drive efficiency for grantmakers and charities to digitally send and receive grant payments,” said Oktay Dogramaci, VP of Giving at PayPal. “By partnering with National Philanthropic Trust and Vanguard Charitable, PayPal Grant Payments will enable more than 200,000 PayPal confirmed charities to quickly receive grants electronically, streamlining and simplifying what has historically been a much more manual and drawn-out process.”
In 2020, DAF donors will be granted at historic levels. Grants from DAFs to qualified charities totalled an estimated $34.67 billion, representing a 27.0% increase compared to 2019 and the highest DAF grant increase in a decade. In 2021 Vanguard Charitable sent out $1.78 billion, and NPT sent out $6.4 billion in grants to charities; these payments were made almost entirely by check.
“NPT is always interested in innovation and the pandemic amplified the need for non-profits to receive grant dollars more efficiently,” said Eileen Heisman, CEO of National Philanthropic Trust. “This solution does that and more. We believe that PayPal-based Grant Payments will simplify and accelerate how grantmakers can get funds to non-profits for mission-critical programs. The partnership with PayPal and Vanguard Charitable on this sector-wide solution could be a game-changer for other funders as well and has been enormously gratifying.”
This process can be costly and slow. The pandemic exacerbated delays in charities receiving grant checks due to disruptions with the postal service and the inability of some non-profits with less access to offices to retrieve checks. Grantmakers and non-profits alike can utilise Grant Payments to save time and resources and focus on fulfilling their respective philanthropic missions.
“We are thrilled to partner with PayPal and NPT to bring modern and effective granting solutions to our donors and non-profit partners alike,” said Rebecca Moffett, president of Vanguard Charitable. “Charities today need sustainable donor support more than ever. By streamlining the granting process, donors can make an even greater – and faster – impact on meaningful cause areas. We look forward to continuing to bring innovative solutions to the granting space, ensuring that we’re always working to increase philanthropy and maximise its impact over time.”
Recently, IBS Intelligence reported that PayPal Holdings had announced the Venmo Small Business Grant, a new program for emerging and small businesses that would provide financial grants and mentorship services to 20 new and existing Venmo Business Profile customers.
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