Global payments firm PayPal is partnering with the National Philanthropic Trust (NPT) and Vanguard Charitable to make it easier for charities to receive grant funds faster.
PalPal collaborated with NPT and Vanguard Charitable to introduce Grant Payments, a new product that enables donor-advised fund (DAF) sponsors, community foundations, and other grantmakers to use PayPal to send grants to charities electronically, according to a Thursday (Aug. 25) press release.
Grant Payments clear a charity to receive the funds once the grantmaker approves the transaction. Grantmakers and charities can access available grant details via a PayPal dashboard. In addition, charities are vetted by PayPal using its compliance standards.
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“PayPal is committed to offering safe, secure and seamless products and services that drive efficiency for grantmakers and charities to digitally send and receive grant payments,” PayPal VP of Giving Oktay Dogramaci said in the release.
“By partnering with National Philanthropic Trust and Vanguard Charitable, PayPal Grant Payments will enable more than 200,000 PayPal-confirmed charities to quickly receive grants electronically, streamlining and simplifying what has historically been a much more manual and drawn-out process,” Dogramaci added.
Grants extended from DAFs to qualified charities totaled an estimated $34.67 billion in 2021, a 27% increase over 2019 and the highest in 10 years, according to the release. Vanguard Charitable distributed $1.78 billion in grant monies, while NPT sent out $6.4 billion. Both organizations distributed the funds by check.
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The check-sending process can be costly and slow, and the pandemic exacerbated delays. Grantmakers and nonprofits can tap Grant Payments to save time and resources while charities get funds faster.
“We are thrilled to partner with PayPal and NPT to bring modern and effective granting solutions to our donors and non-profit partners alike,” said Rebecca Moffett, president of Vanguard Charitable.
“Charities today need sustainable donor support more than ever. By streamlining the granting process, donors can make an even greater — and faster — impact on meaningful cause areas. We look forward to continuing to bring innovative solutions to the granting space, ensuring that we’re always working to increase philanthropy and maximize its impact over time,” Moffett added.
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