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