John Wurth wrote: > I don't understand how the whole paypal works. My experience with > recurring is automatic debit during the specified period (i.e. every > month, every quarter...). Could you please elaborate on the mothly > using paypal? How do they approve it every month?
The difference is that there is no purchase order nor invoice nor other legal agreement between the non-profit and donor. In a normal business transactions there are several steps: 1) the quote from a vendor to a client 2) the purchase order from the client to a vendor 3) the invoice from the vendor to the client 4) the payment from the client to the vendor In donating terms: 1) the solicitation 2) the pledge 3) the invoice 4) the donation In "normal" automatic donation, an invoice (or an EFT request) is sent regularly (e.g. monthly) from the non-profit to a financial institution or individual. The financial institution or individual has the obligation to pay the invoice. In this case, there is no pledge, no PO, no invoice and thus no obligation to pay. The agreement to transfer funds is entirely between the financial institution and the individual. Because of its structure, the individual is in full control of when to start and stop the automatic transfer. Regards, - Robert
