Raising money for a good cause through online fundraising platforms like Facebook has become very popular in recent years. While most fundraisers go smoothly, sometimes issues can arise where donors request refunds or run into problems with their donations. So what should you do if someone asks for their donation back from your Facebook fundraiser?
How Facebook Fundraisers Work
When you create a fundraiser on Facebook, the money raised does not go directly to you or your cause. Instead, it goes to the payment processor Stripe and is held there until you are ready to withdraw it.
Donors pay using their own Facebook payment method, which could be a linked debit card, credit card, or PayPal account. Their donation is processed immediately through Stripe.
As the fundraiser organizer, you can withdraw the money to your own bank account or nonprofit once you hit the withdraw threshold (typically $1000 USD). Facebook pays the processing fees so 100% of the money raised goes to your cause.
Reasons Donors May Request a Refund
There are a few common reasons why someone may ask for their donation back from your Facebook fundraiser:
- They made the donation accidentally or in error.
- They donated more than they intended to.
- They have changed their minds about supporting the cause.
- They do not feel the donation is being used properly or as described.
- They are unhappy with how the fundraiser turned out.
- They misunderstood what their donation would be used for.
In most cases, a refund request is made shortly after someone donates, usually within a few hours or days once they realize their error or change of heart.
Options for Issuing a Refund
As the fundraiser organizer on Facebook, you do not have direct access to process refunds. Here are some options for handling refund requests:
1. Cancel the Donation
If the donation is still pending and has not been processed yet, you may be able to cancel it:
- Go to your Facebook fundraiser dashboard
- Find the pending donation and click “Cancel Donation”
- This will prevent the donation from being processed
- Notify the donor that you cancelled it per their request
2. Refund from the Total Raised
If the money has already been processed from the donor’s account, you will need to issue a refund manually:
- Wait until you can withdraw the fundraiser money
- Withdraw the total amount minus the refund
- Issue a refund to the donor through your personal account or organization
- Reach out to the donor with proof of the refund
This ensures you are only withdrawing and keeping the adjusted amount.
3. Contact Facebook
For individual donations over $10, you can also contact Facebook’s fundraiser support for assistance:
- Find the specific donation in your fundraiser dashboard
- Click “Get Support” and request a refund
- Facebook may be able to cancel the charge or have Stripe issue a refund
- This process may take several weeks
4. Appeal to the Donor
If it is too late to cancel the charge and you do not have the ability to issue a refund, you can appeal to the donor and ask them not to dispute the charge or do a chargeback. Explain that the money has already been processed and withdrawn, so you are unable to give it back. Ask if they would be willing to make an exception given the circumstances. Offer updates on how their donation is being used. However, they have the right to pursue a refund through their bank or card issuer if they choose.
When Refunds Are Not Possible
In some cases, you may not be able to offer a refund:
- The money has already been withdrawn and spent on your cause
- Too much time has passed since the donation
- You do not have enough remaining funds to cover the refund
- Your organization’s policies do not allow donation refunds
All you can do is apologize, explain the situation, and ask if the donor would reconsider or make an exception. However, they may still choose to dispute the charge or contact their bank about a refund.
Best Practices to Avoid Refunds
Here are some tips to help minimize refund requests from your Facebook fundraiser donors:
- Provide very clear details on how funds will be used
- Give donors regular updates on fundraising progress
- Only withdraw money once you are ready to use it
- Avoid changing how donations will be used mid-fundraiser
- Set a clear end date for accepting donations
- Turn off donations immediately if your goal is met early
- Respond promptly to donor questions and concerns
- Issue refunds quickly from remaining funds if possible
- Thank all donors, even if they request a refund later
The Donor’s Options for Disputed Charges
If you are completely unable to offer a refund, the donor still has a couple options to try recovering their money:
Dispute the Charge
They can dispute the charge with their bank or card issuer. This initiates a process where the bank investigates the charge and may request more information from Facebook or Stripe. If found in the donor’s favor, the bank can remove the charge. This can take 1-2 billing cycles.
File a Complaint
The donor can file a complaint against you or your organization with the Federal Trade Commission (FTC). This alerts the FTC to their dissatisfaction with the donation process and your refusal to issue a refund. Too many complaints can trigger an FTC investigation into your fundraising practices.
| Pros | Cons |
|---|---|
| Gets the bank involved on your behalf | Can take time to resolve the dispute |
| Bank acts as a mediator | No guarantee you will get the refund |
| Donor may get money back if bank agrees | May harm relationship with donor |
Avoiding Donor Disputes and Complaints
To avoid getting into a situation where a donor files a dispute or complaint, follow these practices:
- Be transparent about how funds will be used
- Provide receipts and impact reports to show donors their money was used properly
- Only withdraw what you can spend in a short timeframe
- Respond promptly to all inquiries and refund requests
- Issue refunds yourself when possible, even if after withdrawal
- Have clear donor refund policies in place
- Document how you attempt to satisfy refund requests
Avoiding disputes and complaints preserves your reputation, keeps donors happy, and prevents legal headaches.
Impact on Future Fundraising
How you handle refunds and disputes on your Facebook fundraiser can impact your future fundraising efforts in a few key ways:
Donor Trust
If you build a reputation for unreliable refund practices, donors may be hesitant to give to you again. Clear policies and responsiveness can strengthen donor trust.
Stripe or Facebook Account Standing
Too many disputes or attempts to avoid refunds can get your accounts reviewed or deactivated by Facebook and Stripe.
Nonprofit Status
If enough complaints accrue, your 501(c)(3) status could potentially be at risk in an extreme scenario. Most nonprofits take this very seriously.
Word of Mouth
Dissatisfied donors may spread the word about challenges getting refunds from your fundraiser, damaging your reputation.
Always handle refunds professionally to avoid jeopardizing your future fundraising efforts.
Conclusion
Receiving refund requests for your Facebook fundraiser can be tricky to navigate. Work directly with each donor to find a fair resolution. Process refunds promptly when possible, and appeal to donors if unable to provide one. Avoid donor disputes and chargebacks by being transparent and responsive. Manage fundraiser donations wisely, and issue refunds from remaining funds first before withdrawing everything. With some care and planning, you can maintain donor satisfaction and trust even when the occasional refund is needed.