Crowdfunding is a tremendous way for people and charities to raise money for a good cause. Sites like GoFundMe focus mainly on the charitable space while others like Kickstarter and Indiegogo make it possible for people to raise money for their projects and products.
Now, PayPal is getting in on the action. It is launching a new program called Generosity Network that will let people crowdfund for themselves, a community, or a charitable cause. Each campaign is able to raise as much as $20,000 over 30 days.
Given the fact that PayPal is a popular and familiar platform, it is another great way for people to give to the causes they believe in.
In a statement, PayPal’s vice president of giving, Oktay Dogramaci, said, “The Generosity Network was designed to provide an accessible, easy and secure way for our customers to raise money on behalf of causes, and connect them with millions of PayPal customers who can offer their support this holiday season and beyond.”
New Way to Give
PayPal’s new Generosity Network is a nice addition to the platform. The company has been expanding further into the financial world and is now much more than a simple peer-to-peer transaction network.
The arrival of a new way for people to support each other couldn’t come at a better time. As the COVID-19 pandemic continues to wreak havoc on lives both physically and financially, crowdfunding efforts to support those most affected have become even more important.
Although Generosity Network is still new, it appears to be fairly easy to use. As mentioned, campaigns can last up to 30 days and contributions will be capped at $20,000. That differs slightly from competitors like GoFundMe who don’t share these limits.
Like most other crowdfunding platforms, Generosity Network is open to the public and allows both people and organizations to set up campaigns. Pages for these campaigns can be filled with photos, descriptions of how the money will be used, and other helpful information.
People who want to donate can do so with their available PayPal balance, a connected bank account, or a credit card. It’s worth noting that those who choose the latter don’t need to worry about fees. According to TechCrunch, PayPal is temporarily waiving fees on transactions made with credit cards—although it does plan to charge them eventually.
Head on a Swivel
As with any form of crowdsourcing, users will need to stay alert when choosing which campaigns to donate to. PayPal’s Generosity Network has rules against things like misleading claims and inciting hatred. However, those guidelines are only enforced if a community member reports the offending campaign.
This means there is a lot of potential for Generosity Network to be misused by scammers. That isn’t a knock against the new program (since it is a problem with all crowdfunding) but simply a fact that potential donors should keep in mind. Community members should always report campaigns that seem suspicious and do their research before donating.
All things considered, Generosity Network seems like it will be a great way for people to support each other now and in the future.