How do I setup a donation, legally and online?

Question

I am trying to raise money for a cause and I am doing this via facebook. My plan is to get people to join the group, donate $1 or more to a Paypal account and then use that money to help various charties around the world. Obviously, several problems arise with this:

1) How do I setup a paypal account for this situation?

2) Do I need legal authority, and if so, how do I get it?

3) How can I let the contributers know that I am not just going to take their money and go?

4) Will the government tax me on any of the donations?

I know it sounds fishy, but I am NOT a scam artist. I am trying to raise money for these various charities my church has shown me. I'm just trying to make a difference. Thanks for you help. God bless.

Answer 1

i believe you have to set up a "Non-profit corporation" which would exempt you from taxes.  You'll need a lawyer for this.  Otherwise, you may have to pay taxes on the money you collected.  If you are collecting it for a nonprofit already, I would contact them and maybe they can forward you the deposit account for automatic payments.  I believe Paypal can do this. Maybe.  Be prepared.  You're going to have to send them receipt of transaction for their own tax right offs.

Maybe it would just be easier to talk about the nonprofit organization and then have it direct them to the official website.  If you are really trying to help them, that sounds more legit.

Answer 2

You can ask your church to open a GiveStream Center and then help her online.

GiveStream offers a set of free and easy-to-use online fundraising and community-building tools that help nonprofits create their own branded easy giving center.