Facebook fundraisers allow users to raise money for causes and organizations directly through the Facebook platform. Fundraisers can be set up for birthdays, weddings, memorials, or causes the user cares about. The money raised through Facebook fundraisers goes directly to the nonprofit or organization selected by the fundraiser creator.
Facebook does not take a cut of the donations – 100% of the money raised goes to the designated nonprofit or organization. Facebook absorbs the costs of payment processing fees so that more of the money gets to the cause.
How do fundraisers work on Facebook?
To set up a fundraiser on Facebook, users go to the “Fundraisers” tab on their profile and click “Raise Money.” They select the nonprofit they want the money to go to from Facebook’s database of 1 million+ charities. The fundraiser creator can pick a cover photo, title, goal amount, end date, and story to share with their friends and followers.
When the fundraiser is live, the creator’s friends and followers can donate to it directly through Facebook by clicking the “Donate” button. They can donate any amount and leave comments of support. The money is processed through Facebook Pay, so donors can use payment methods connected to their Facebook account.
How do fundraisers get their money?
The payments process depends on whether the fundraiser is for an individual or a nonprofit organization:
Individual fundraisers
If an individual sets up a personal fundraiser for themselves (for example, to cover medical bills or other needs), the money raised will be deposited directly into their bank account connected to Facebook Pay. Individual fundraisers must have a Facebook Pay account connected to receive the money.
The person receives the full amounts of the donations, minus the processing fees covered by Facebook. The money is deposited into their bank account weekly until the fundraiser end date.
Nonprofit fundraisers
For nonprofit fundraisers, Facebook sends the money directly to the selected nonprofit organization.
Facebook releases the funds to the nonprofit on a rolling basis throughout the fundraiser campaign. The nonprofit must go through an approval process and verify their bank account information with Facebook Pay to receive the money.
How long does it take for fundraisers to receive the money?
For both individuals and nonprofits, it typically takes 2-5 business days after a donation is made for the money to clear and be counted toward the fundraiser goal.
Individuals receive the money weekly after it builds up in their Facebook Pay account. Nonprofits receive money on an ongoing basis throughout the length of the fundraiser campaign.
After the campaign end date, Facebook sends a final disbursement to wrap up any remaining donations. This final payment can take up to 15 business days to process after the end date.
So in summary, the typical timeline is:
| Donation made | 2-5 business days to clear |
| Individual payouts | Weekly |
| Nonprofit payouts | Ongoing |
| Final disbursement | Up to 15 days after campaign end |
Does Facebook take a fee from fundraisers?
One of the big benefits of Facebook fundraisers is that 100% of the money raised goes to the selected individual or nonprofit – Facebook does not take a fee.
They even cover the cost of payment processing fees so that more of the donation amounts get to the cause. For personal fundraisers, the individual receives 100% of the donated amounts, minus a small fee for the transaction processing that is absorbed by Facebook.
This sets Facebook fundraisers apart from other crowdfunding platforms, which typically take a percentage fee. It makes fundraising through Facebook a very efficient way to gather donations.
Do donations through Facebook fundraisers count as tax deductible?
If the fundraiser is set up for a recognized 501(c)(3) nonprofit organization, the donations can count as tax deductible charitable contributions.
Donors should check with the specific nonprofit to confirm that they have 501(c)(3) status. Personal fundraisers for individuals or undefined causes do not allow for tax deductible contributions.
What payment methods can be used to donate?
Donors can contribute to a Facebook fundraiser using any payment method they have connected to their Facebook account, including:
– Credit or debit card
– PayPal account
– Bank account
When they click to donate, they will have the option to select which payment method to use. The money is securely processed via Facebook Pay. Donors don’t need to have a Facebook Pay account to donate.
Are there fees for donors?
There are no fees that come out of the donor’s donation amounts. Facebook Pay covers all the processing fees so that the full donation reaches the fundraiser.
Can fundraisers receive donations offline?
Fundraiser creators can only receive online donations through the Facebook platform. Any offline donations made directly to the individual or nonprofit will not count toward the Facebook fundraiser goal or be processed through Facebook Pay.
This ensures the fundraiser process stays completely on Facebook for a seamless donating experience. It also enables Facebook to cover the payment processing fees.
What are the requirements to create a fundraiser?
Here are the basic requirements to set up a personal or nonprofit fundraiser on Facebook:
– Must have an individual Facebook profile or Page
– Nonprofits must be registered as a 501(c)(3) organization
– Individual fundraisers must be age 18+ and have a Facebook Pay account connected
– Fundraisers must follow all Facebook terms, policies and community standards
Facebook reviews all fundraisers to ensure they meet requirements. Funds go to verified individuals and nonprofits only. Personal fundraisers have to be for legitimate purposes and causes.
Can businesses or companies create fundraisers?
Facebook fundraisers are intended for nonprofit causes. For-profit companies and organizations are not eligible to register as fundraiser beneficiaries on Facebook. Some exceptions are made for small businesses raising funds for local community needs.
Business Pages can host fundraisers for nonprofit partners and share them with customers. But the money can only be directed to a legitimate nonprofit entity.
Are there limits on how much can be raised?
Facebook does not impose a limit on how much total money a fundraiser can raise. The only limit is the goal amount the fundraiser creator sets when they establish the fundraiser.
They can always adjust the goal amount higher as more donations come in. Facebook processes all donations with no maximum cap.
Can fundraiser lengths be extended?
Yes, the organizer of a fundraiser can extend the end date at any time if they want to keep it running longer. There’s no limit on how long a fundraiser can be extended.
Conclusion
Facebook provides an easy and free platform for individuals and nonprofits to crowdfundraise for their causes. With Facebook covering processing costs, 100% of donations reach the intended beneficiary. Funds are quickly disbursed via Facebook Pay on an ongoing basis.
By hosting fundraisers directly through their Facebook profiles and Pages, people can leverage their friends, family and followers to hit fundraising goals and collect donations online. It offers a fast and seamless way to mobilize support and funding.