Facebook provides tools for nonprofit organizations and personal fundraisers to collect donations directly through the Facebook platform. When someone makes a donation through Facebook, the company does take a small percentage as a processing fee. However, the exact percentage Facebook takes depends on the payment processor and platform used.
Does Facebook Take a Cut of Donations?
Yes, Facebook does take a percentage of each donation that is processed through their platform. The fee goes to cover payment processing costs and other operating expenses for Facebook.
However, the percentage that Facebook takes varies based on:
- The payment processor used – Facebook partners with several payment processors like PayPal, Stripe, and PayU.
- Whether donations are made on desktop or mobile – Mobile transactions tend to have higher processing fees.
- The country the donation originates from – Transaction fees vary by region.
So Facebook does not have a universal percentage fee that they take from all donations. It’s dependent on several factors.
Facebook Donations Payment Processing Fees
Here are some examples of the typical fees deducted on Facebook donations for US nonprofits:
- PayPal Giving Fund donations – 5% + $0.05 per donation
- Stripe credit card donations – 2.9% + $0.30 per transaction
- Facebook Peer-to-peer donations – No fee for nonprofit Pages
For personal fundraisers, Facebook takes a larger 5% fee from donations in addition to payment processing costs.
The payment processor used will determine the exact percentage deducted. Facebook receives a portion of the fee for providing the tools and platform for collecting the donations.
How Facebook Donation Fees Compare
Compared to other online donation processors and fundraising platforms, Facebook’s fees are very competitive:
| Platform | Typical Fees |
|---|---|
| 2.9% + $0.30 per transaction (with Stripe) | |
| PayPal | 2.9% + $0.30 per transaction |
| GoFundMe | 2.9% + $0.30 per donation |
| Network for Good | 4.5% + $0.45 per donation |
As you can see, Facebook’s fees are very similar to competitors when using Stripe as the processor. With other processors like PayPal Giving Fund, the fees are slightly higher for Facebook donations.
But overall, Facebook does not deduct an excessive percentage of donations compared to other leading platforms. The fee goes to support the costs of providing the tools and transaction processing.
Should You Donate Through Facebook?
Here are some of the pros and cons to consider about donating through Facebook rather than directly to a nonprofit:
Pros
- Easy and convenient donation platform if you already use Facebook regularly.
- Allows nonprofits to tap into existing social media audiences for fundraising.
- Peer-to-peer fundraising tools empower supporters to collect donations.
- Competitive processing fees compared to other donation platforms.
Cons
- Facebook does take a small percentage of each donation as a fee.
- Some nonprofits prefer to collect donations directly instead through third-party platforms.
- Requires nonprofits to link their donation page with their Facebook presence.
- Potential technical issues or delays in charities receiving funds.
Whether the pros outweigh the cons depends on the specific nonprofit and the convenience for donors. Smaller processing fees may not always be worth losing the direct donor relationship for some organizations.
How Much Does Facebook Make from Donations?
Facebook likely generates millions in revenue from processing donations each year. According to statistics:
- Over 750 million people engage with nonprofits on Facebook annually.
- $1 billion was raised for nonprofits through Facebook fundraising tools in 2017.
- 1.5 million nonprofits have donation tools configured through Facebook.
Based on these numbers, even deducting a 2-5% fee from donations processed through Facebook would result in tens of millions in revenue for the company.
And revenue from donations is likely growing substantially year-over-year as more fundraising shifts online and to social channels. But Facebook does not disclose exactly how much revenue they generate from nonprofit donations specifically.
Should Nonprofits Use Facebook Fundraising Tools?
Here are some tips on when Facebook donation tools make sense for nonprofits:
- Use Facebook for peer-to-peer fundraising – This allows supporters to collect donations without any transaction fees deducted.
- Link to donation pages on your website when possible – This allows the nonprofit to collect the full donation directly.
- Test different processors – Compare transaction fees and usability of PayPal Giving Fund vs Stripe on Facebook.
- Analyze results – Evaluate if Facebook donations are cost-effective based on processing fees and staff time.
Smaller nonprofits may prefer to avoid third-party donation platforms like Facebook altogether. But they can be very effective to reach new donors for larger organizations with an existing Facebook presence.
Carefully compare the pros and cons and transaction fees to determine if Facebook tools are the right fundraising option.
Conclusion
Facebook does take a small percentage fee from donations processed through its platform, ranging from 2-5% typically. The exact fee depends on factors like the payment processor, transaction type, and region.
Compared to competitors, Facebook’s fees are very comparable for nonprofit and personal fundraising. But some charities prefer to avoid third-party donation platforms altogether to reduce fees and have a direct donor relationship.
Overall, Facebook provides a convenient and low-cost donation processing option for nonprofits with an existing social media presence. But organizations should carefully weigh the pros and cons of third-party giving against collecting donations directly.