Ask HN: Why does PayPal giving take so long?

#1

Post by wierdstuff » Mon, Jul 24, 2023, 1:31 AM UTC

I donated recently to various charities via PayPal's Giving Fund. Despite their disclaimer, I was surprised to see that it consistently takes over three weeks to pay my chosen charity.

Is this your experience too? Why would PayPal need to keep the funds for so long before passing them along?

Re: Ask HN: Why does PayPal giving take so long?

#2

Post by ClassyJacket » Mon, Jul 24, 2023, 1:36 AM UTC

Probably so they can invest it in the stock market and make a profit off other people's money.

Re: Ask HN: Why does PayPal giving take so long?

#3

Post by tjr » Mon, Jul 24, 2023, 1:52 AM UTC

I don't know for sure, but I am under the impression that they just do one transaction each month to each charity, rather than multiple (such as whenever someone donates).

One charity that I support used to have a link on their website just for a PayPal donation, and somehow I ended up giving to them via PayPal Giving Fund instead, and they told me that PayPal Giving Fund ended up giving them 100% of the donation amount, whereas with a standard PayPal donation, some percentage was kept as a fee.

So maybe the PayPal Giving Fund delayed schedule is related to them not charging the fee?

Re: Ask HN: Why does PayPal giving take so long?

#4

Post by mattl » Mon, Jul 24, 2023, 2:05 AM UTC

tjr wrote: post #3

I don't know for sure, but I am under the impression that they just do one transaction each month to each charity, rather than multiple (such as whenever someone donates). One charity that I support used to have a link on their website just for a PayPal donation, and somehow I ended up giving to them via PayPal Giving Fund instead, and they told me that PayPal Giving Fund ended up giving them 100% of the donation amo…

Yeah this makes a lot of sense. Send one check/payment a month to avoid the burden of dozens or more of tiny donations to a non-profit.

Re: Ask HN: Why does PayPal giving take so long?

#5

Post by orionblastar » Mon, Jul 24, 2023, 2:16 AM UTC

ClassyJacket wrote: post #2

Probably so they can invest it in the stock market and make a profit off other people's money.

It makes sense.

Re: Ask HN: Why does PayPal giving take so long?

#6

Post by edmundsauto » Mon, Jul 24, 2023, 2:27 AM UTC

ClassyJacket wrote: post #2

Probably so they can invest it in the stock market and make a profit off other people's money.

I worked in a capacity with a similar Donor Advised Fund (DAF). Donations are batched and paid out usually each month to make the process more efficient.