How does it differ from its Giving Fund?
PayPal just launched its Generosity Network. It’s quite different from its Giving Fund platform.
The GF feature lets you support your favorite charities online. PayPal will receive the donations through tech platforms and give the money to the donor’s recommended charities.
There are no fees when using Giving Fun. But online charities must enroll with PayPal.
But the Generosity Network is different because it lets you raise money for yourself and other people who are in need.
Because of how it works, it becomes a direct competition with GoFundMe and other crowdsourced fundraising platforms.
Currently, GN is only open to US PayPal users. The allowed fundraising campaign is a maximum of $20,000 over 30 days.
The increasing popularity of the peer-to-peer fundraising market during the coronavirus pandemic motivated PayPal to create this new service. Because of the pandemic, charities are struggling to raise money, according to PayPal.
Throughout the coronavirus pandemic, more than 65 million Americans are now unemployed. As a result, they turn to their family and friends for financial support.
Using Generosity Network
There are different categories that you can choose from if you wish to donate or raise money.
But you can’t just raise money for yourself without a valid reason. PayPal will have to verify your identity first before you can start your campaign.
Then, your PayPal account must be in good standing. Furthermore, you can only activate one campaign per account at any time.
When you visit the site, you can find that PayPal users are starting to raise funds for funeral expenses, community efforts, and many others.
If you made donations through your credit card or debit card, you would not pay any fees. PayPal will only waive fees for a limited time.
PayPal didn’t reveal the fees for the new platform for now. It can only do so in early 2021.
Fundraising typically occurs over the holiday season. As it waives fees, it may have the edge over its competition.
There are several crowdsourcing platforms that you can find. Kickstarter is one of them. In 2017, it helped over 130,000 projects. However, if you don’t reach your funding goal, you’ll get nothing.
GoFundMe is another platform that lets individuals raise money for projects. But most of the projects here are local. In 2017, though, it raised more than $4 billion.
IndieGoGo uses a different approach. That is, it lets you keep the money you raised despite not reaching your funding goal.
But all of these platforms can help you raise money for the project you want. And in today’s crisis, you can raise money for yourself to help you pay for your bills with the use of PayPal’s new platform.
The main benefit of this type of platform is that you can raise money quickly. It offers immediate reaction from the marketplace.
Going to a bank to apply for a loan can be tedious. And if your business fails, you still have to pay the money you borrowed from the bank.
If you reside in the US and a current PayPal user, you can start raising money on behalf of causes through the Generosity Network.