PayPal Charitable Giving Fund meets the 20 Standards for Charity Accountability.
GOVERNMENT ACTION
In January 2020, PayPal Charitable Giving Fund entered into a settlement agreement with multiple states including New York. The New York Attorney General stated that:
PayPal Charitable Giving Fund, Inc. (PPGF) is the charitable arm of PayPal, Inc. PPGF is a 501(c)(3) nonprofit corporation that allows donors to contribute funds electronically to PPGF and to select a charity to receive their contribution. PPGF then aggregates all the contributions and distributes them accordingly to the various charities. PPGF does not collect fees from donors or charities for this service; however, a charity receives contributions more quickly if the charity maintains a PayPal account, a fact that had not been adequately disclosed to donors. And in some instances, PPGF redirected donors' contributions from the charity selected by the donor to other organizations with similar purposes without informing donors.
Charities regulators nationwide joined the effort to investigate PPGF's fundraising activities, including its disclosures, vetting practices, and treatment of charitable contributions. To address the states' concerns, PPGF agreed to adopt reforms to its disclosures to ensure that donors know that they are contributing to PPGF; the timeframe in which a selected charity may receive funds from PPGF; and the implication of being an enrolled rather than an unenrolled charity on the PPGF platform.
PPGF also agreed to notify donors when it redirects a donor's charitable contribution to an organization other than the one selected by the donor. PPGF will provide regulators with future fundraising campaign data to ensure the organization is complying with its obligations under the agreement.
Finally, PPGF agreed to make a payment of $200,000 to the National Association of Attorneys General for deposit into the NAAG Charities Enforcement and Training Fund. This Fund has been established to defray costs associated with the investigation and litigation of cases brought by state charities regulators and to provide training and education to those regulators.
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Year, State Incorporated
2011, DC
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Affiliates
PayPal Giving Fund UK
PayPal Giving Fund Canada
PayPal Giving Fund Australia
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Stated Purpose
"to develop innovative programs that introduce charitable giving in relevant and engaging ways to new audiences, benefitting the charity sector."
PayPal Charitable Giving Fund (PPGF) works to raise awareness and support for nonprofits by creating philanthropic programs by partnering with businesses. The organization employs PayPal's assets and capabilities to create giving opportunities that raise unrestricted funds for a network of more than 175,000 enrolled charities in the United States. PPGF reports that the support from partner businesses allows the organization to grant 100% of donations received to charities.
For the year ended December 31, 2020, PayPal Charitable Giving Fund's program expenses were:
Program services |
$507,904,691 |
Total Program Expenses: |
$507,904,691 |
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Chief Executive
Nick Aldridge, Chief Executive Officer
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Compensation*
$181,638
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Chair of the Board
Oktay Dogramaci
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Chair's Profession / Business Affiliation
Vice President, PayPal Giving, PayPal
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Board Size
6
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Paid Staff Size
21
*2020 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Note: Nuru Kiyemba, Chief Financial Officer, was the highest paid employee, receiving $194,901 in compensation.
Method(s) Used:
Internet
Fundraising costs were <1% of related contributions. (Related contributions, which totaled $507,780,373, are donations received as a result of fundraising activities.)
This organization is tax-exempt under section 501(c) (3) of the Internal Revenue Code.It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
The following information is based on PayPal Charitable Giving Fund's audited financial statements - consolidated for the year ended December 31, 2020.
Source of Funds |
Contributions |
$497,199,835 |
In-kind contributions |
$10,580,538 |
Program service revenue |
$3,290,182 |
Miscellaneous income |
$40,061 |
Total Income |
$511,110,616 |
- Programs: 100%
- Administrative: Less than 1%
- Fundraising: Less than 1%
Total Income |
$511,110,616 |
Program expenses |
$507,904,691 |
Fundraising expenses |
$679,420 |
Administrative expenses |
$1,740,228 |
Other expenses |
$0 |
Total expenses: |
$510,324,339 |
Income in Excess of Expenses |
$786,277 |
Beginning Net Assets |
$1,692,806 |
Other Changes In Net Assets |
$-23,011 |
Ending Net Assets |
$2,456,072 |
Total Liabilities |
$51,793,895 |
Total Assets |
$54,249,967 |
Note 1: As noted in the financial section above, "other changes in net assets" refers to foreign currency translation adjustment.
Note 2: According to the organization's 2020 audited financial statements, PPGF received in-kind contributions totaling $10,580,538 in the form of transaction and service ($9,038,382), personnel ($923,266), legal services ($397,186), rent ($138,208), and equipment ($83,496).