How do nonprofits receive donations made on the Groundswell platform?
Groundswell facilitates the distribution of funds via two partners - PayPal Grant Payments and Bill.com. Groundswell sends donations electronically via PayPal to over 200,000 charities that have confirmed charity accounts with PayPal
Groundswell sends donations using ACH or paper checks via bill.com to any nonprofit that is not signed up with PayPal with a confirmed charity account or that does not wish to accept donations via PayPal Grant Payments.
What is PayPal Grant Payments?
Grant Payments enables Groundswell to deliver grants (donations) to charities directly into their PayPal account or bank account. Charities can review the grant information and accept or decline in their Grant Payments dashboard. There are no fees associated with receiving grants via PayPal. Please see here a brief overview video.
How can we sign up and use PayPal to receive grants electronically?
- Create a PayPal business account, making sure to identify as a nonprofit (follow the steps here)
- Follow the prompts to confirm your charitable status. Once confirmed, you’ll be automatically signed up to receive donations (grants) fee-free into your PayPal account. You can choose to receive grants into your PayPal account OR via ACH.
How can our nonprofit receive grants?
If you have a confirmed charity account with PayPal, you’ll be automatically signed up to receive grants via Grant Payments. When Groundswell sends your organization a grant, you will receive an email notification as well as a notification on your PayPal account home page. You’ll need to log into your PayPal account and go to the Grant Payments Dashboard. From there you can review the donor details, grant letter, and terms and conditions. After reviewing, you can accept or decline the donation; if accepted, the money will be available in your PayPal account within one day. You can also choose to receive grants via ACH directly into your bank account.
If you do not have a confirmed charity account with PayPal, you will receive donations via Groundswell’s partner at bill.com. Groundswell prioritizes sending payments to charities via ACH but in some cases will issue paper checks if requested by the charity or if Groundswell can’t obtain ACH information. Donations via paper check will be sent to the mailing address on file with the IRS.
How can I find more information on who donated to my organization?
The Groundswell Charitable Foundation is a 501c3 Public Charity with the purpose of serving as a custodial Donor Advised Fund - to facilitate donations to nonprofits at the recommendation of individuals that hold DAFs on our platform.
For each donation, we are currently only at liberty to share the following information:
- Donor name (if not anonymous)
- Donation amount
- Donation date
If you’d like to obtain this info about a specific donation, please reach out to our support team.
Is there a portal for nonprofits to log in and view donation data?
At this time, Groundswell does not have a portal for NPOs to access donation information more easily, but this feature is in consideration for the future! We are also exploring new distribution partners to better facilitate getting the funds to our nonprofit recipients, and share more details about the donations (notes, etc).
As a nonprofit, is there anything we need to do to ensure we will receive donation funds when they are available?
There’s no specific set up necessary for non profits. Groundswell prioritizes sending payments to charities via ACH but in some cases will issue paper checks if requested by the charity or if Groundswell can’t obtain ACH information.
For more information on our donation process and timing check this article (link to process/timing article).
Are donations received from Groundswell Charitable Foundation considered workplace matching gifts?
Some of our users are enrolled in company-sponsored giving programs, but others are not. Moreover, the funds in individual users' accounts (individual DAFs) become fungible once they enter the account. A company match (where relevant) happens at the point of contributing funds into the individual account, not at the point of donation.
Do nonprofits need to send tax receipts to the donors or to the Groundswell Charitable Foundation?
No, you do not need to send a tax receipt or any acknowledgement letters. The Groundswell Charitable Foundation - as a Donor Advised Fund - provides tax receipts to donors that contribute funds to their Groundswell DAFs. Moreover, Groundswell does not collect mailing addresses of donors, so we are unable to forward any letters that are sent to the Groundswell Charitable Foundation.
Are there any restrictions to the donations that are received from the Groundswell Charitable Foundation?
Funds received from the Groundswell Charitable Foundation are made without Expenditure Responsibility (non-ER) - in other words, they are unrestricted and can be used as your organization sees fit. At times, some of Groundswell’s users may want to send a donation in someone’s memory, or tie their donation to a fundraiser (e.g. Cycle for Survival), so we may communicate that additional information to inform how you may decide to use the funds.