What problems is Zeffy solving and how is that benefiting you?
Zeffy has solved a major problem for our small nonprofit parrot rescue: PayPal’s ever-increasing fees—especially its policy of keeping the entire processing fee when a donation is refunded.
Through our Outreach Program, we sometimes raise money to help bird owners obtain emergency veterinary care. Because those donations are collected for a specific purpose, there are circumstances in which offering refunds is the right thing to do. For example, donors may contribute toward emergency treatment for a critically ill bird, only for the bird to pass away before it can be seen by the veterinarian. We always offer to return donations collected for a specific need that no longer exists. Many donors generously tell us to use their gifts for the rescue’s birds instead, but others understandably prefer a refund.
Under PayPal’s current policy, refunding the donation does not return the processing fee. If someone donates $1,000, we may receive only about $980 after PayPal deducts approximately $20 in fees. If we then refund the donor’s full $1,000, that missing $20 must come from the rescue’s own funds. In effect, we pay PayPal $20 for a donation that ultimately provided the rescue with nothing. Just a few refunds like that can seriously hurt a small nonprofit—especially when we were only collecting the money to help someone else.
With Zeffy, we receive the entire donation. If circumstances require us to return it, we can refund the full amount without dipping into the rescue’s limited funds to replace money taken as processing fees. That allows us to do what is right for our donors, the people we assist, and the birds who depend on us. Review collected by and hosted on G2.com.