does not charge a fee for setting up a cash gift Fund, however a 5% handling fee will be deducted from transactions made through a Cash Gift Fund. PayPal will separately deduct their standard fees for processing contributions made with credit cards. 

The PayPal® fee is 2.5% per transaction. This fee will be deducted from the amount contributed on each transaction. Additional PayPal® fees may apply if you plan to convert money in your Cash Gift Fund from U.S., Canadian, or Australian dollars to another currency.