I understand you now. You're about 99% right. To meet our full obligations
though we at least have to tell the donor that and how. Right now we're not.
This falls under implied contract not written.
Robert Citek <[EMAIL PROTECTED]> wrote: 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
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