It's not clear given Google's policy wording and replies. We've removed the links, and can move forward once clarification has been provided.
From another angle: why/how do you feel the tax-exempt-mess of the recipient itself could sensibly be the determining factor here, rather than the taxability of the transaction itself? Is there any law or precedent or anything outside their emails that would suggests a payment processor should look at the tax status of the recipient rather than that of a transaction?
I don't know every jurisdiction, but that's not the only relevant factor. If they are tax-deductible, they still introduce the need for paperwork etc. for the payment processor to let the payer deduct it from their own income. A 0% tax on some action doesn't imply you don't have to worry about tax law when performing said action.
Though I think you can just read the policy and take it at face value and not even have to know any of this beforehand.
> Nonprofits have strict tax regulations when accepting donations. The more a payment processing system can assist with these regulations, the better for you and your donors. For instance, donors need to receive specific documentation for tax-deductible contributions, such as donation receipts. Additionally, different types of donations may involve different tax considerations for the donor and the organization. Nonprofits also have to consider any state and federal regulations regarding their charitable solicitation and fundraising activities, which may vary depending on location and activities.
And there's of course also exemption from sales tax which they have to handle too.
[1] https://www.subsplash.com/blog/nonprofit-payment-processing#...