Fundraisers have become increasingly common on Facebook in recent years. With the click of a button, users can create a fundraiser for a cause or personal need and share it with their network of friends. This has proven to be an effective way for individuals and nonprofits to raise money. However, there are also risks involved when donating through Facebook fundraisers, leading some to question if they are legitimate.
What are Facebook fundraisers?
Facebook rolled out its fundraisers feature in 2015. It allows users to create a fundraiser for a birthday, charity event, crisis, family need, or personal cause. The fundraiser includes a story, photos/videos, and a fundraising goal amount. It leverages the user’s existing Facebook friend network for donations. All money raised goes directly to the user’s bank account, minus a small processing fee taken by Facebook.
Facebook does not vet the fundraisers posted on its platform. Users are responsible for ensuring the fundraiser meets Facebook’s terms and conditions. The platform relies on self-governance by its community to report suspicious or fraudulent activity. Facebook fundraisers are intended for individuals, organizations, and charities to leverage their networks for fundraising efforts.
Pros of Facebook fundraisers
There are several potential benefits to fundraising on Facebook compared to other crowdfunding platforms:
- Access to large existing network – A user can easily tap into their network of friends, family, peers, etc. without having to build an audience from scratch.
- Personal connection – Donors may feel more inclined to give to someone they know rather than a stranger.
- Lower fees – Facebook takes less of a processing cut than most other crowdfunding platforms.
- Easy to set up – Creating a fundraiser takes just minutes through the Facebook interface.
- Monitoring capabilities – Fundraiser creators can see who has donated and update supporters throughout.
The built-in network, personal touch, and simplicity of Facebook fundraisers make them an appealing choice for individuals hoping to tap their community for support. Nonprofits have also found them beneficial for creating campaigns tied to specific initiatives or events.
Cons of Facebook fundraisers
While Facebook fundraisers provide a straightforward way to raise money, there are also concerns over their legitimacy and security:
- Limited vetting – Facebook does not verify the identity or intentions of fundraiser creators. This raises risk of scams.
- Misuse of funds – There is often no accountability for how funds are used once dispersed to the creator.
- Privacy concerns – Donors’ personal information may be shared with third parties through Facebook.
- Tax implications – Individual fundraiser creators may be required to claim funds as income.
- Coordinating donations – Nonprofits may find it tricky when donors contribute through both Facebook and other channels.
- Proliferation of fundraisers – Friends’ newsfeeds can become overwhelmed by an influx of fundraisers.
While most fundraisers on Facebook are legitimate, the lack of oversight leaves room for exploitation. Donors should exercise caution when contributing to individual fundraisers versus an established nonprofit organization.
Are Facebook fundraisers a scam?
For the most part, fundraisers administered directly by nonprofits through their Facebook pages are legitimate. These credible organizations are upfront about how funds will be used. However, users should be more cautious when donating to fundraisers created by individuals.
Scam fundraisers often use the following tactics:
- Suspicious or vague details – The story behind the fundraiser may contain red flags or lack key information.
- No connection to creator – The fundraiser pops up from someone you don’t know well or follow.
- Urgency – Language like “act now” or “limited time” pressure you to donate without thinking.
- Grammatical errors – Poor grammar or spelling mistakes indicate a lack of effort.
- Stock photos – Generic images not specific to the fundraiser creator raise questions.
While not definitive signs of a scam, these factors should give donors pause when evaluating a fundraiser’s trustworthiness. Facebook has tips for spotting and reporting suspicious fundraisers.
Most common fundraising scams
Some typical examples of fake fundraisers to watch out for include:
- Medical bills – Scammers take advantage of sympathies over medical and health problems by claiming to need help with expenses. But funds raised are simply pocketed.
- Memorial funds – Comparable to medical scams, bogus memorial fundraisers for fake funerals rake in donations from unsuspecting mourners.
- Charity impersonators – Scammers create fundraisers mimicking real charities to deceive people into thinking they are donating to the legitimate organization.
- Sob stories – Fundraisers may try to pull at heartstrings using made-up sad stories not grounded in reality.
These schemes aim to capitalize on people’s generous instincts. But some healthy skepticism goes a long way in avoiding getting duped.
How to vet a Facebook fundraiser
If you want to make sure a fundraiser is above board before contributing, here are some tips:
- Check the fundraiser creator’s profile – Does it appear to be a real person with authentic content? Fake profiles are a red flag.
- Ask questions – Comment on the fundraiser post asking for specifics about how funds will be used.
- Look up backstory details – Search online to verify any details of medical conditions, accidents, deaths etc. mentioned.
- Contact organizers – For charity fundraisers, reach out to the nonprofit to confirm they sanctioned the Facebook campaign.
- Check for recent activity – Inactive accounts that suddenly create a fundraiser should raise suspicions.
Taking the time to thoroughly vet a fundraiser before donating helps avoid funneling money towards sketchy causes or bad actors. If anything seems off, go with your gut instinct to not contribute.
How to report a Facebook fundraising scam
If you come across a fundraising scam on Facebook, it’s important to report it to reduce the chances of others getting duped. Here are the steps to report a fraudulent or misleading fundraiser:
- Click the three dots in the top right corner of the fundraiser post.
- Select “Report fundraiser”.
- Choose the option “Fraudulent” to flag the concern and submit the report.
- Facebook reviews fundraiser reports and will remove those found to violate policies.
- Consider warning your friends by commenting on the post to avoid it spreading further.
Reporting suspicious activity helps Facebook identify bad actors misusing the platform for ill intent. This protects both donors and fundraisers following proper protocols.
Safe practices for donating through Facebook
Exercising caution doesn’t mean avoiding Facebook fundraisers altogether. You can utilize the platform securely by:
- Primarily donating to fundraisers hosted by established nonprofits you’re familiar with.
- Researching the individual behind a fundraiser before contributing any money if you don’t know them.
- Reporting fundraisers that appear at all questionable – better safe than sorry.
- Starting small if you want to help an individual fundraiser creator without much history – you can always give more later.
- Stopping communication if you sense high pressure for donations from a fundraiser organizer.
With some healthy due diligence, you can have peace of mind your donations through Facebook are going towards legitimate causes.
Should Facebook do more to prevent fundraising scams?
Facebook’s hands-off approach to fundraisers has raised concerns. Some argue the platform has an ethical duty to better police fundraising activity happening on its watch. Suggestions for how Facebook could cut down on scams include:
- Requiring fundraiser creators to meet identity verification standards before posting.
- Clearly labeling individual fundraisers versus registered nonprofit fundraisers.
- Limiting how many times a user can create a personal fundraiser in a year.
- Providing more education to users on fundraising best practices.
- Hiring staff to review fundraisers above a certain monetary threshold.
- Facilitating refunds if a report finds donations were obtained fraudulently.
Critics argue Facebook only cares about its bottom line and avoids burdening itself with responsibility for how its platform is exploited. But the company maintains community self-governance works fine for flagging problematic behavior. How Facebook chooses to balance oversight vs. freedom on fundraisers remains to be seen.
| Year | Total Funds Raised by Facebook Fundraisers |
|---|---|
| 2017 | $300 million |
| 2018 | $500 million |
| 2019 | $1 billion |
| 2020 | $4 billion |
The data shows funds raised through Facebook fundraisers skyrocketing in recent years. As the platform continues enabling more fundraising, ensuring accountability around scams and misuse of donations becomes increasingly important.
Conclusion
Facebook fundraisers provide a fast, convenient way for individuals and organizations to leverage their networks for charitable causes. However, the lack of oversight by Facebook and risk of scams means donors should thoroughly vet any personal fundraisers before contributing.
Look for red flags indicating a fraudulent or misleading fundraiser. When in doubt, report suspicious activity to Facebook and warn others who may be vulnerable to a scam. With sound judgment, Facebook can still facilitate tremendous good through its empowering fundraising tools.