Information relating to personal and business PayPal accounts
PayPal – with a treasurer’s personal account
- The treasurer accepts contributions into personal PayPal (friends and family) account, then transfers funds to his/her personal account; the “Coffee Can”.
- It is important to understand that, if the treasurer uses PayPal for personal expenses, then the group’s money is mixed with the personal money – in the same manner as money is mixed in the personal checking account.
- PayPal transactions, unlike Venmo, are private.
- A 1099 income statement is not issued by PayPal for personal accounts.
- PayPal does not charge any fees for personal accounts, so the full amount of a contribution may be transferred to the “Coffee can”.
- A PayPal personal account is “NOT” a prerequisite for obtaining a PayPal Business account.
PayPal – with an A.A. Group (Business) Bank Account
- Treasurer accepts contributions into business PayPal account, then transfers funds to “Coffee Can”
- PayPal business accounts can accept contributions from credit, debit, ACH, and PayPal.
- PayPal will publish a tax document for your business account – online. This may be used for completing annual online N-990 tax postcard. Note tax liability, for A.A. groups, begins with acceptance of more than $10,000 in contributions during a single year. Refer to the A.A. Finance Guidelines published on this site.
- PayPal charges transaction fees for business accounts; currently 2.9% + $.30 per transaction