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Does PayPal offer nonprofit rates or fee discounts?

Yes, please check out https://www.paypal.com/charities for more information. 

By simply confirming that your PayPal account belongs to a 501c3 (if based in the US), your organization will be given a special reduced nonprofit rate of 1.99%.  + $0 .49 per transaction.

For more information and to apply for the nonprofit rate, please check out PayPal's website.