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PayPal Teams With Philanthroper, a Groupon for Good

Posted: 17 May 2011 06:11 PM PDT

philanthroper image

PayPal is teaming up with Philanthroper to spur a little bit of crowdsourced good.

Philanthroper is a "daily deals" site; but instead of offering up cheap tickets to shows or discounted meals, it offers up new and important nonprofits.

Every day, the site showcases a worthy cause and asks users to donate just $1. Users cannot give any less or any more than $1.

While this limitation may seem counter-intuitive, it plays on the idea that a lot of people doing a little bit of good can create massive change. The site is as much about fostering a giving attitude as it is about collecting swaths of money. The goal is to make charity a habit rather than a sporadic or uncommon occurrence. Still, if all of PayPal's 98 million users signed on, that would be a huge sum of money.

Similar to Groupon, Philanthroper will send daily emails notifying users of the new charity and asking for donation. All the charities will be registered 501(c)(3)s. After users donate, they can share out the site (and their good deed) through their social networks.

phialnthroper text image

The partnership with PayPal makes the donation process even simpler and opens the site up to an entirely new, international audience of potential donors. Despite this international scope, the charities will all be U.S.-based.

Even though Philanthroper does not collect any fees from the donations or charge charities to be featured, PayPal collects a 10% fee on all transactions. So why not just donate $1 to the featured non-profit and circumvent PayPal? The 10% sounds a little shady before considering that PayPal will also be swallowing international credit card fees and hopefully assist with donation matching.

Nonprofits have been a focus for PayPal as of late.

"The non-profit space is huge for PayPal because of the ability we have to help donations-based organizations, both large and small, build additional revenue streams through mobile technology and social media," said a representative of PayPal. Their developer support program, PayPal X, is also turning out innovative applications for the nonprofit sector.

Philanthroper is not a far cry from Carlo Garcia's project, Living Philanthropic, but the former features a simplified donation process and more aggressive email notifications.

What do you make of micro-donations? Can a website really foster a sense of giving? Sound off in the comments.

More About: charity, groupon, non-profit, paypal, philanthroper, social good

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