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.
When prompted for organization type, select Small nonprofit.
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.
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.
Serving the community — it’s an art! The Kiwanis Club of Sisters, Oregon, U.S., worked with a local art gallery to host this year’s food drive for the Sisters Kiwanis Food Bank. The gallery encourages attendees at events like Canned Wine Night to drop off donations. Last year, the food drive brought in 2,410 pounds of food and US$1,200. #KidsNeedKiwanis... See MoreSee Less
A Sisters art gallery and the Kiwanis Club of Sisters are teaming up for the third annual Feed Sisters food drive, which kicked off earlier this month, to help fill […]
The goal: to raise US$50,000 for their 50th anniversary. The Kiwanis Club of Greater Waverly, Iowa, U.S., knocked it out of the park! In fact, the club raised US$55,000 to purchase and install seven new scoreboards at the local baseball and softball fields, where members regularly work the concession stands. #KidsNeedKiwanis... See MoreSee Less
New scoreboards at BAJA Ballfields are on the horizon as the City of Waverly accepted a check from the Greater Waverly Kiwanis Club in partnership with Waverly-Shell Rock Youth Baseball
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
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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Sorry, nothing found.Kiwanis International Posts
Serving the community — it’s an art! The Kiwanis Club of Sisters, Oregon, U.S., worked with a local art gallery to host this year’s food drive for the Sisters Kiwanis Food Bank. The gallery encourages attendees at events like Canned Wine Night to drop off donations. Last year, the food drive brought in 2,410 pounds of food and US$1,200. #KidsNeedKiwanis ... See MoreSee Less
Sisters food drive kicks off; canned wine night to benefit - The Bulletin
bendbulletin.com
A Sisters art gallery and the Kiwanis Club of Sisters are teaming up for the third annual Feed Sisters food drive, which kicked off earlier this month, to help fill […]1 CommentsComment on Facebook
The goal: to raise US$50,000 for their 50th anniversary. The Kiwanis Club of Greater Waverly, Iowa, U.S., knocked it out of the park! In fact, the club raised US$55,000 to purchase and install seven new scoreboards at the local baseball and softball fields, where members regularly work the concession stands. #KidsNeedKiwanis ... See MoreSee Less
Greater Waverly Kiwanis Club and W-SR Youth Baseball and Softball present $55,000 check to the City of Waverly
www.communitynewspapergroup.com
New scoreboards at BAJA Ballfields are on the horizon as the City of Waverly accepted a check from the Greater Waverly Kiwanis Club in partnership with Waverly-Shell Rock Youth Baseball8 CommentsComment on Facebook