Facebook provides tools for individuals and organizations to raise money for causes they care about. When someone donates through Facebook, the funds typically go directly to the intended recipient. However, the exact flow of the donation depends on the type of fundraiser.
Donations to Personal Fundraisers
If an individual sets up a personal fundraiser for themselves, for example to raise money for medical bills, Facebook sends the funds directly to that person.
The person who created the fundraiser must have a Facebook profile and can choose to receive the funds via direct deposit to their bank account or as a mailed check. The money does not go through Facebook – it goes from the donor directly to the fundraiser organizer.
Personal Fundraiser Donation Process
- Individual creates a personal fundraiser on Facebook
- Donor contributes money via Facebook
- Facebook collects the payment from the donor
- Facebook disburses the donation to the personal fundraiser organizer
- The organizer receives the funds directly
So in the case of personal Facebook fundraisers, donations go to the person who created the campaign, not to Facebook itself.
Donations to Nonprofit Fundraisers
Nonprofit organizations can also create fundraisers on Facebook. In this case, the funds typically go directly to the nonprofit.
However, Facebook does not disburse money to organizations directly. The nonprofit must first enroll with Facebook’s donation partner Network for Good to receive access to the donated funds.
Nonprofit Fundraiser Donation Process
- Nonprofit creates a fundraiser on Facebook
- Donor contributes money via Facebook
- Facebook collects the payment from the donor
- Facebook sends the funds to Network for Good
- Network for Good disburses the donation to the nonprofit
So while the donation was initiated on Facebook, Facebook does not actually transfer the money itself. It goes through an intermediary donation processing partner.
Who Receives the Donations
To summarize who receives fundraiser donations on Facebook:
| Fundraiser Type | Recipient of Funds |
|---|---|
| Personal Fundraiser | Individual fundraiser organizer |
| Nonprofit Fundraiser | The nonprofit organization |
While the back-end process differs slightly, the end result is that in both cases the money goes to the intended recipient, whether an individual or a nonprofit.
Fees and Taxes on Donations
One common question is whether Facebook takes any fees or commissions from fundraiser donations on its platform.
According to Facebook, 100% of the donation amount goes to the organizer of personal fundraisers. Facebook does not take any fee or percentage of the funds raised.
For nonprofit fundraisers, Network for Good processes the payment. They retain a small portion of donations to cover their payment processing costs before disbursing the remainder to the nonprofit. This fee is typically around 3-5% of the donation value.
Applicable Taxes on Donations
Regarding taxes, for personal fundraisers the organizer may be responsible for claiming the donations as income if required by tax laws in their region.
For nonprofit fundraisers, donors receive tax deduction receipts as the donations are processed through Network for Good as a 501(c)(3) nonprofit.
How Donors Can Ensure Their Money Goes to the Right Place
Donors should verify that a fundraiser is legitimate before contributing. Here are some tips:
- Check that the fundraiser has accurate information and details in the story
- Look for a blue verified badge on nonprofit fundraiser pages
- Visit the nonprofit’s official website to ensure the fundraiser is authorized
- For personal fundraisers, know the organizer directly or ensure the story is credible
- Contact the organizer or nonprofit with any questions before donating
As long as donors exercise some due diligence in vetting a fundraiser, they can have confidence their money will reach the intended recipient when donating via Facebook.
Conclusion
In summary, donations made through Facebook fundraisers go directly to the organizer for personal fundraisers and the nonprofit for organizational fundraisers. While Facebook initiates the transaction, the funds are disbursed from the payment processors to the recipients, not through Facebook itself.
Facebook does not take a fee or percentage of donations to personal fundraisers. For nonprofit fundraisers, Network for Good may take a small payment processing fee before disbursing the remainder of the funds.
By understanding the donation flow process and verifying legitimacy before contributing, donors can ensure their money gets to the right recipient when donating through Facebook fundraisers.