PayPal Australia has today announced the establishment of the PayPal Giving Fund Australia, a Public Ancillary Fund and charity registered with the Australian Charities & Non-Profits Commission (ACNC), to enable greater charitable giving across Australia.
PayPal Giving Fund will help Australians support their favourite causes via secure online donations, and extends PayPal’s commitment to process billions of dollars for hundreds of thousands of charities from millions of people around the world.
PayPal Giving Fund Australia uses PayPal technology and financial support to help raise funds to benefit Australian charities.
All PayPal Giving Fund operating costs are covered by partners like PayPal, removing the need to charge charities or individual donors for its services. 100 per cent of funds received by PayPal Giving Fund Australia are distributed to Australian charities.
PayPal Giving Fund has been established in the US, Canada and the UK, and raised over AUD$130 million to benefit 46,000 charities in 2017.
Coinciding with the launch of PayPal Giving Fund, PayPal Australia has commissioned research which shows that the way Australians donate to charities is only continuing to evolve.
The research revealed donations via smartphone have increased by 75 per cent year-on-year (12 per cent in 2017, 21 per cent in 2018), while a quarter (26 per cent) of Australians have made an online donation via a website in the last year.
PayPal Giving Fund Australia director Elaine Herlihy said: “The launch of PayPal Giving Fund in Australia emphasises PayPal’s commitment to support charities here at home and abroad.
“As the research shows, the way Australians are supporting their chosen charities is changing.
“Charities in Australia need to embrace the opportunity that digital and online donations presents.”
“Traditionally, charities have collected their funding via cash or cheque donations.
“However, as consumer purchasing and payment behaviours become more digitised, the age-old cash donation is quickly becoming a thing of the past,” Herlihy said.
Emphasising the need for Australian charities to embrace digital payment options, the research also revealed that 2 out of 5 Australians (42 per cent) have intended to make a donation, but have not done so because they did not have any cash on them (53 per cent for millennials).
As Australia shifts closer and closer toward a cashless society, the research found that the majority of Australians (65 per cent) think online donations will outpace offline donations in the next 5 years.
A further 61 per cent of Australians said they think charities would raise more money if they had the option to donate via mobile (up from 56 per cent in 2017).
Additionally, more than half of Australians (54 per cent) would prefer to make donations via PayPal as they feel it is more secure than credit or debit card.
Social media – the future of giving
PayPal Giving Fund Australia has partnered with Facebook to launch Facebook Fundraisers in Australia today.
Facebook Fundraisers enables registered non-profits and charities the opportunity to create fundraisers and receive direct donations on Facebook to support the causes they care about.
Donations on Facebook to benefit Australian registered charities are received and disbursed by PayPal Giving Fund, with 100 per cent of the funds going directly to charity.
The PayPal research found that a third of Australians (36 per cent) have discovered a charity via Facebook and then proceeded to make a donation to the cause – a figure which jumps to 52 per cent for millennials.
Furthermore, a quarter (25 per cent) of millennials have made a donation via social media in last year, while 14 per cent said they would be more likely to make a donation if they could do so via social media (twice as high as the Australian average – 7 per cent).
Facebook is also the most preferred social media platform to make a donation, with 27 per cent of Australians most likely to make a donation directly through the platform (a number that increases to 45 per cent for under the age of 35).
Facebook director of policy Mia Garlick said: “Facebook is a place where people come together to connect with their communities and support one another in meaningful ways.
“People often donate to support a friend who is undertaking a charity sporting event or because of a personal referral from family or friends.
“The launch of our charitable giving tools amplifies this activity and allows people to more easily donate to thousands of Australian charities through Facebook fundraisers.”
Benefits of PayPal Giving Fund
Benefits for charities that are eligible to receive funds from PayPal Giving Fund Australia include:
- No fees: PayPal Giving Fund partners, including PayPal, cover all operating costs, meaning PayPal Giving Fund Australia doesn’t charge charities or individual donors for our services.
- Reports and receipts: PayPal Giving Fund provides donation and donor reports, issues official donation receipts and make grants to your charity every month.
- Attract more donors: Enrolling with PayPal Giving Fund puts charities in front of an online audience of millions through the PayPal Giving Fund Cause Hub.
How the PayPal Giving Fund works
- Charities can be enrolled with PayPal Giving Fund Australia and manage their public profile, add their organisation’s logo and tell their story in a way that encourages more donor support.
- Supporters donate through the platform or other trusted partners, such as Facebook Fundraiser, launched today.
- PayPal Giving Fund Australia receives the donations and provides receipts to donors.
- PayPal Giving Fund Australia grants the funds to charities without charging them, or individual donors for its services.
How Facebook Fundraisers work
Registered charitable organisations in Australia are eligible to collect donations directly on Facebook with a donate button on their Page header, posts, and live video.
Additional information for charities on accessing and using Facebook Fundraisers can be found here.
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