Facebook provides several options for users and Pages to raise money for causes. This includes fundraising tools like Facebook Fundraisers and Donate buttons. But how exactly does Facebook process these donations and get the money to the right place?
Facebook Fundraisers
Facebook Fundraisers allow users to create fundraisers for themselves, non-profits, or causes they care about. The money raised through Facebook Fundraisers goes directly to the non-profit organization or cause. Here’s a quick overview of how it works:
- A user creates a Facebook Fundraiser and selects a non-profit organization to receive the funds.
- When people donate to the fundraiser, they use their Facebook payment method or enter credit/debit card details.
- Facebook processes the payments and sends the money directly to the selected non-profit organization.
- The non-profit receives the funds and issues tax receipts to donors (if eligible).
So in summary, Facebook acts as the payment processor but does not take any fees or retain any of the money. 100% of the donations go to the non-profit organization.
Donate Buttons
Facebook Pages can add Donate buttons that allow people to donate directly to the Page. This is different from Facebook Fundraisers. With Donate buttons, the money goes to the Page owner, not a separate non-profit. Here’s how it works:
- A Page adds a Donate button and connects their bank account or debit card for receiving payments.
- When someone donates using the button, the payment goes to Facebook.
- Facebook processes the transaction and deposits the money into the Page owner’s connected account.
- The Page owner can then use the donations as they see fit.
In this case, Facebook takes a small fee from each transaction (around 5% + $0.30) to cover payment processing costs. The remaining 95% goes to the Page owner. Keep in mind that Donate buttons can only be used by verified Pages and funds go directly to individuals or organizations, not separate non-profits.
Taxes and Fees
For both donation options, donors may be eligible to claim tax deductions on their donations if the recipient is a registered charity. Non-profits are responsible for providing tax receipts to donors.
Facebook does not charge fees for Facebook Fundraiser donations sent to non-profits. But they do charge a small processing fee for Donate button transactions sent to Pages, as noted above.
Funds raised on Facebook from countries outside the United States are subject to a 2.9% + $0.30 fee per donation to cover international transaction costs.
Withdrawal Options
For Facebook Fundraisers, non-profits must provide bank account information so Facebook can transfer the donations. Non-profits can also opt to have donations sent to their PayPal account.
For Pages using Donate buttons, the Page owner must connect a bank account, debit card, or PayPal account to receive funds. Facebook payments are disbursed on a regular disbursement schedule.
Policies and Restrictions
Facebook has specific policies around what types of fundraisers and causes are allowed on their platforms. All Facebook Fundraisers and Pages with Donate buttons must abide by these rules. Here are some key policies:
- Fundraisers can only raise money for a non-profit organization, not an individual.
- Non-profit organizations must comply with all applicable laws and regulations.
- Fundraisers cannot promote hate, violence, or extremism.
- Misrepresenting a cause or misusing funds can result in fundraisers being shut down.
- Facebook reviews all fundraisers and reserves the right to disable any that violate their terms.
Pages that repeatedly promote ineligible fundraisers or causes may have their Donate buttons removed.
Fundraiser Visibility
When someone creates a Facebook Fundraiser, they can choose whether to make it public or private. Public fundraisers appear in the News Feeds of the person’s friends and followers. Private fundraisers are only visible to the creator and administrators.
Pages with Donate buttons are always public. Any Facebook user who visits the Page can see and use the Donate button.
Promoting Fundraisers
There are a few ways for fundraisers to gain more visibility on Facebook:
- Share the fundraiser on your Profile, in Groups, and across social channels.
- Go live on Facebook to talk about your fundraiser. Live videos often get good engagement.
- Run Facebook ads promoting your fundraiser or non-profit Page.
- Post interesting content and stories related to your cause.
- Engage your existing audience by posting updates, photos, videos, and milestones.
Additionally, fundraisers that raise larger amounts tend to gain more visibility. Facebook often highlights and features trending and successful fundraisers in News Feeds to inspire others.
Fundraiser Stats and Reporting
Fundraiser creators can view detailed stats and reports on:
- Total dollars raised
- Number of donors
- Average and highest donations
- Number of shares and likes
Facebook provides nonprofit partners with fundraising summaries and impact reports as well. These provide high-level stats as well as stories and feedback from donors.
Conclusion
In summary, Facebook provides straightforward tools for charitable giving. Facebook Fundraisers send 100% of proceeds directly to the nonprofit partner. Donate buttons give Pages an option for crowdfunding causes they care about. While fees and policies vary, the process allows everyday users to leverage the Facebook platform for fundraising.