I have a question about PayPal Giving Fund.
About a year ago, I called them on the phone (I don't remember what number I called, but it was a line intended for donors). I asked the representative this question: If I donated $100 to a charity on PayPal Giving Fund using a credit card, how much money would the charity ultimately receive? They told me that the charity would receive $100. Is this accurate? Is it misleading?
Context and caveats
This is not an attack on PayPal or the phone representative. It just seems to me like there could be some complexity involved that would make it hard to guarantee this. For example, maybe in PayPal's mind "$100 going to the charity" just means "PayPal doesn't take a cut," but some other credit card interchange fee is still paid by the charity. I don't know how these things work.
While I was on the phone with that representative, I briefly re-asked the question a few different ways to try to get at the complexity there. They were very patient with me, seemed to know what they were talking about, and kept saying "yes."
That's consistent with what PayPal says and with what this competitor site says. However, I know there have been issues in the past with PayPal not being appropriately transparent about this program and creating issues for charities (same third-party link).
Also, whenever I ask about this I am told that this is stupid, I should just write a check or else use the most prominent donation option available on a charity's website, that everything else in an administrative pain for the charity and there must be a catch somewhere. For those reasons, I'm still not convinced by my phone call.
In case you're wondering why I don't just write a check or use the most prominent displayed option on a charity's website, the answer is that I would like to get credit card rewards for my donations if possible. My target charity is GiveDirectly, which is pretty cozy with PayPal. So I presume some of the downsides (administrative burden, delays, shadiness) would not apply to me. Interesting PSA: per Harper-Reinstate Monica, given my circumstances I might get more out of my charitable contributions by transferring stocks to a DAF and then immediately donating those stocks to a charity. The avoided capital gains tax could be more than the credit card rewards. (In this case the savings come from Uncle Sam rather than the bank; determine the ethics of that as you will. To be fair, I also don't know what transaction costs are associated with the donation of assets from the DAF to the charity.) Thanks to @keshlam as well.