Periodically charities on GoFundMe and GoFundMe Charity may go inactive with PayPal Giving Fund. Until the inactive status is cleared, PayPal Giving Fund is prohibited from sending the funds located in the charity's payment account. Without any action, the funds may be reassigned to another charity or refunded at the donor's discretion.
To ensure your charity does not fall into this category, we've listed the most common reasons a charity may go inactive below, as well as the solutions to clear those issues:
Opted out of third party giving with Guidestar
In order to receive the funds raised, the charity will need to opt into third-party giving with Guidestar by following the steps outlined in this article: How to Receive and Opt-Out of Third Party Donations.
After that's been completed, your charity will need to wait for Guidestar to update its database with the changes before PayPal Giving Fund will be able to reactivate the PayPal Giving Fund profile to receive funds. Guidestar submits organization updates twice a month, usually around the beginning and middle of the month.
Please let our team know once the charity has completed those steps so one of our team members can follow up with PayPal Giving Fund for you.
Revoked with the IRS
As an inactive charity, you will need to update your charity's status with the IRS prior to PayPal Giving Fund issuing the funds. Once you've updated your status, we recommend enrolling with PayPal Giving Fund to ensure the funds are received before reassignment.
Payment partners cannot hold onto funds indefinitely because they are not a bank. If PayPal Giving Fund sends your checks to your address, but they do not get cashed, they will assume the address is incorrect and will list your charity as inactive. To fix this, please verify that your charity's address is updated with Guidestar. If the address is incorrect, please update the address with Guidestar before reaching out to our team.
The charity is a Private Foundation
If your charity is a private foundation, you will not be eligible to receive the funds from PayPal Giving Fund. PayPal Giving Fund can only send funds to Public 501(c)3 public charities. In this instance, your charity's funds will be refunded or reassigned.