PayPal Holdings, Inc., in partnership with National Philanthropic Trust (NPT) and Vanguard Charitable, announced Grant Payments. This new product enables Donor-Advised Fund (DAF) sponsors, community foundations, and other grantmakers to deliver grants to charities quickly and electronically via PayPal.

Charities will be able to collect awards soon after the grantmaker has authorized the cash thanks to grant payments. Grant details, including donor information when provided, will be accessible to both grantmakers and organizations via a PayPal dashboard. The strict compliance criteria of PayPal have been applied to the evaluation of eligible and participating charities.

“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,”

“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.”

                                                                         Oktay Dogramaci, VP of Giving at PayPal.

Donor grants from the DAF will reach record highs in 2020. The expected $34.67 billion in grants from DAFs to qualified charities represents a 27.0% increase compared to 2019 and the biggest DAF grant increase in ten years. Grant payments to charities totaled $6.4 billion in 2021 from NPT and $1.78 billion from Vanguard Charitable; checks accounted for the majority of these payments.

“NPT is always interested in innovation and the pandemic amplified the need for non-profits to receive grant dollars more efficiently,”

“This solution does that and more. We believe that PayPal-based Grant Payments will simplify and accelerate how grantmakers can get funds to non-profits for mission-critical programs. The partnership with PayPal and Vanguard Charitable on this sector-wide solution could be a game-changer for other funders as well and has been enormously gratifying.”

                                                        Eileen Heisman, CEO of National Philanthropic Trust.

This procedure may be pricey and drawn out. Due to postal service delays and the inability of some non-profits with limited access to offices to retrieve cheques, the pandemic made it even more difficult for charities to receive grant checks on time. Grant Payments allow both grantmakers and non-profits to focus on carrying out their respective philanthropic missions while saving time and resources.

“We are thrilled to partner with PayPal and NPT to bring modern and effective granting solutions to our donors and non-profit partners alike,”

“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.”

                                                             Rebecca Moffett, president of Vanguard Charitable.

PayPal Holdings had announced the Venmo Small Business Grant, a new program for emerging and small businesses that would provide financial grants and mentorship services to 20 new and existing Venmo Business Profile customers.