Welcome! This forum has a treasure trove of great info – Scouters helping Scouters! Just a heads up, though - all content, information, and opinions shared on this forum are those of the author, not the BSA.
PayPal is officially supported in Scoutbook (though there’s apparently some question about whether it’s allowable to use PayPal in this way to pay for, e.g., memberships). However, I’m running into a difficulty in verifying nonprofit status in order to qualify for lower fee rates. PayPal needs the Tax ID or verifying documents to match the name used on your PayPal account. The problem, of course, is that the relevant nonprofit organization here is our Chartering Organization, not the Troop.
Has anyone found a way around this? How have others coped with this issue?
That as a program of their organization, may you use their Tax ID number? Working with our PTO, they ended up not having one as they use the districts when needed. The School district isn’t interested in letting us use theirs. So, that was our dead end, but I know some orgs that don’t mind.
I don’t know; I’ll have to try that. At this point, it won’t even try, and is asking for further documentation, but I’ll mess around and see what I can do.
We have PayPal accounts for both our pack and crew using our Charter Org (church) information, but let me warn you that PayPal keeps freezing our accounts and asking for us to resubmit all the tax documents again. This is happening monthly and it was driving us crazy. So I called and was told that this is a PayPal policy to ensure that the entities are indeed non-profit and we are not laundering money. We are now considering going back to paper checks and getting out of the whole PayPal process. The hassle is not worth the small amount we save per transaction.
Our troop went round and round with WePay (replaced PayPal payment system in SignupGenius) on the exact same issue. They withheld funds until we jumped through all sorts of hoops.
The solution to their verification riddle was:
copy of the charter and proof of address
proof that the unit and CO (Their taxid) are NPOs
letter, on CO letterhead that our unit treasurer ( on bank signature card) was, in fact, authorized by our CO to handle funds on behalf of our unit and in the interest of the CO
Our COR was very helpful getting the information from the CO.
Oddly enough, our pack set up their WePay account about 1 year earlier with no hassle whatsoever.
The experience was so bad that I will not use SignupGenius or WePay, instead opting for EventBrite… a little more expensive but very robust system and account easy setup.
It seems like the simplest workaround for PayPal is to just send all monies using the Friends and Family option - there are no associated fees with that. And certainly all the adult scouts and parents in a Troop can be considered friends.
Agreed, but at this point there are still open technical issues which are detrimental to Troop finances. There is still the option to manually input finances on a per scout basis in Scoutbook. My point of view is certainly biased in that I do not have a large number of scouts to deal with. I suppose my position is just that there are manual ways to use electronic funds without adding costs to the Troop - the question becomes a trade-off of time to expense.