Fundraising on Facebook has become an extremely popular way for individuals and nonprofit organizations to raise money for causes they care about. With over 2 billion active monthly users, Facebook offers unparalleled reach for getting the word out about a fundraiser. But once the fundraiser is over, donors may wonder: how exactly do I receive the money that was raised?
How does Facebook process donations for fundraisers?
Facebook provides a few different options for how fundraiser organizers can receive the money raised. The most common options are:
- Transfer to bank account: The money raised can be directly transferred to the organizer’s bank account that is connected to their Facebook account.
- DonorAdvised Fund (DAF): The money can be deposited into a DonorAdvised Fund, which is a charitable giving account managed by a third-party provider.
- Nonprofit organization: If fundraising for an eligible nonprofit, the money can be sent directly to that organization.
- Personal check: Facebook can mail a paper check to the fundraiser organizer.
The specific options available depend in part on the country and currency used for the fundraiser, as well as whether the fundraiser is for an individual or nonprofit organization. But in most cases, bank transfer or depositing into a DAF account are the preferred options for quickly receiving funds.
Setting up a bank account
To be able to receive a bank transfer of the money raised, the fundraiser organizer needs to connect a bank account to their Facebook account. This bank account can be either a personal account or a nonprofit organization’s account.
To add a bank account:
- Go to the “Settings” menu from the dropdown arrow at the top right of Facebook.
- Click on “Payment Settings” from the menu on the left side.
- Under “Bank Account,” click “Add Account.”
- Enter the routing and account numbers for the bank account.
- Confirm the bank account details.
Once the bank account is connected, fundraiser organizers can select to transfer funds raised directly to that account from their fundraiser management page.
Using a DonorAdvised Fund
A DonorAdvised Fund (DAF) allows fundraiser organizers to deposit the money raised into a dedicated charitable account. DAFs are managed by third-party organizations, such as Network for Good, Benevity or American Endowment Foundation.
With a DAF account, fundraiser organizers can easily deposit their raised funds and then recommend grants or distributions to their chosen nonprofit organizations at any time. DAFs make it simple to distribute money flexibly over time to the causes the fundraiser supported.
To use a DAF, organizers first need to set up an account with one of the third-party DAF providers integrated with Facebook. Once the DAF account is connected, funds from a fundraiser can be seamlessly transferred into it at the conclusion of the fundraiser.
Receiving funds from a personal fundraiser
For personal fundraisers not associated with a nonprofit, organizers generally have two options for quickly receiving the money raised:
- Bank account transfer
- DonorAdvised Fund
In most countries, Facebook charges no fees for personal fundraiser payments to bank accounts. Payments are also fast, generally arriving in the account within 1-2 weeks after the fundraiser ends.
One advantage of using a DAF account for personal fundraisers is the tax benefits. Donations from individuals to a personal DAF account may be eligible as charitable deductions.
If a bank account or DAF is not an option, fundraiser organizers can request a paper check from Facebook, which arrives within approximately 8 weeks. However, the check will include a 5% processing fee deducted by Facebook.
Receiving funds for nonprofit fundraisers
Fundraisers run on behalf of registered nonprofit organizations have a few additional options for receiving donations:
- Nonprofit bank account
- Nonprofit DAF account
- Directly to the nonprofit organization
Instead of using a personal bank account, nonprofit fundraiser organizers can provide bank account information for their organization. Money raised will be deposited directly into the nonprofit’s bank account.
Nonprofits can also create organizational DAF accounts to allow supporters to donate through Facebook Fundraisers. The DAF account funds can then be granted to the nonprofit as desired.
For eligible nonprofits, Facebook also allows the money raised to be sent directly to the organization in their name. The nonprofit must go through an approval process with Facebook to access this feature.
Requirements for nonprofits
For nonprofits to raise funds directly on Facebook and receive the money raised, organizations must:
- Be registered and in good standing in their country
- Complete Facebook’s nonprofit verification process
- Not be blocked from using Facebook Fundraisers
Details on eligibility requirements can be found in Facebook’s Nonprofit Policies.
Taxes and fundraiser funds
Depending on the country’s laws, funds received from Facebook fundraisers may be considered taxable income. Organizers should consult with a local tax professional to understand their potential tax obligations.
For fundraisers run on behalf of a nonprofit, the donations are generally tax-exempt. But the nonprofit is still legally responsible for declaring the funds if required.
When using a DAF, fundraiser organizers do not need to worry about taxes. The DAF provider handles any tax filings related to the charitable funds.
Conclusion
Receiving funds from a Facebook fundraiser is easy once organizers understand the options available. By setting up a connected bank account, DonorAdvised Fund, or eligible nonprofit, the money raised can be quickly collected and used for good.
| Payment method | Fees | Speed |
|---|---|---|
| Bank account | None | 1-2 weeks |
| DonorAdvised Fund | None | 2 days |
| Check | 5% | 8 weeks |
This summarizes the key options fundraiser organizers have for receiving the money donated through their Facebook fundraiser. By understanding the fees, speed, and requirements for each method, organizers can ensure they quickly get the funds to put towards their cause.