Online Fundraising Account Setup

Kiwanis clubs frequently use PayPal or Venmo to collect event fees, run fundraisers, or accept donations online. When you create an account, PayPal asks you to classify your organization. Choosing the wrong type can cause verification problems or create incorrect expectations about fees and tax status.

Understanding Your Club’s Tax Status

Kiwanis International is a 501(c)(4) organization, and individual clubs generally operate under that same status. A 501(c)(4) is a civic and social welfare organization — it is not the same as a 501(c)(3) charitable organization. This distinction matters when you configure a payment account.

Important: Contributions to a Kiwanis club are not tax-deductible for the donor. If your club wants to offer tax-deductible donations in the future, that requires establishing a separate 501(c)(3) foundation, which is a separate legal and IRS process.

Choosing the Right Organization Type in PayPal

When you create a PayPal Business account, you will be asked to select an organization type.

501(c)(3) Organization — Do not select this unless your club has separately incorporated and received its own IRS 501(c)(3) determination letter. Kiwanis International’s 501(c)(4) status does not qualify your club for this designation.

Church / Government Agency — Not applicable to Kiwanis clubs.

Small Nonprofit (revenue under $5,000) — This is the correct choice for most Kiwanis clubs, particularly those with modest annual fundraising revenue and no separate 501(c)(3) incorporation.

Subordinate Organization — This is for organizations operating under a 501(c)(3) group exemption. Since Kiwanis operates as a 501(c)(4), this generally does not apply.

Recommended Setup Steps

  1. Go to paypal.com and create a Business account.
  2. When prompted for organization type, select Small nonprofit.
  3. Enter your club’s EIN (Employer Identification Number) if you have one.

Tip: PayPal’s reduced nonprofit processing fees apply only to verified 501(c)(3) organizations. Standard processing fees will apply to most Kiwanis club accounts.

What About Venmo?

Venmo for Business accounts follow similar rules. Create a Venmo Business profile rather than a personal account. If Venmo prompts you to classify your organization during setup, apply the same guidance above.

Adding a Donation Form to Your Club Site

Once your PayPal account is set up, you can embed a donation or payment form directly on your club website using the Gravity Forms plugin, which is already installed on your site.

Gravity Forms integrates with PayPal and can display a Venmo payment button alongside standard PayPal Checkout. Gravity Forms has a step-by-step tutorial for building this type of form. Note that some features in that guide — including reduced transaction fees and Venmo Charity Profiles — apply only to verified 501(c)(3) organizations and will not be available to most Kiwanis clubs.

Building a Venmo Donation Form with Gravity Forms →

Need Help?

If you are unsure which option applies to your club, or if PayPal is requesting documentation you do not have, contact Club Sites support before completing your setup.

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