GoFundMe and Facebook are two popular online fundraising platforms. Both allow individuals to create fundraisers for causes they care about and share the fundraisers with their network of friends, family and followers on social media. But which platform should you use for your next fundraiser? Here is a comparison of GoFundMe vs Facebook fundraiser to help you decide which option may work better for your needs.
What are the key differences between GoFundMe and Facebook fundraiser?
Fees
One of the biggest differences between GoFundMe and Facebook fundraiser is the fees charged.
GoFundMe charges a 5% platform fee for U.S. individual campaigns in addition to a 2.9% + $0.30 per donation payment processing fee. So in total, GoFundMe takes around 8% in fees from each donation.
Facebook fundraisers do not charge any platform or processing fees. 100% of the money raised goes directly to the selected nonprofit organization. This makes Facebook the fee-free option between the two platforms.
Fundraiser recipients
On GoFundMe, fundraisers can be set up to raise money directly for an individual, group or cause. The money is paid directly to the personal account of the fundraiser organizer.
On Facebook, fundraisers must be associated with an approved tax-exempt nonprofit organization. The money raised goes directly to the nonprofit, not an individual.
Location focus
GoFundMe is open to personal fundraisers globally. Facebook fundraisers can only raise money for approved nonprofits in eligible countries. At the time of writing, Facebook fundraisers are available in the United States, United Kingdom, Ireland, France, Italy, Spain, Germany, Canada, Australia, Brazil and Mexico.
Social reach
When you create a fundraiser on Facebook, you can instantly tap into your existing network of friends and family who already use Facebook. This gives Facebook fundraisers an advantage in terms of social reach, especially if you have an established network of connections on Facebook.
On GoFundMe, you may need to drive more traffic to your fundraiser through shares on social media or other promotion. While you can connect your GoFundMe to Facebook, your existing Facebook friends won’t necessarily see your GoFundMe fundraiser unless you actively invite them.
Donor payment options
GoFundMe offers more payment options for donors including credit/debit card, Apple Pay, Google Pay and ACH bank transfer.
Facebook currently only supports credit/debit card payments for donations.
| Platform | Fees | Fundraiser Recipients | Location Focus | Social Reach | Donor Payment Options |
|---|---|---|---|---|---|
| GoFundMe | 8% in fees | Individuals, groups, causes | Global | Must promote fundraiser | Credit/debit, Apple Pay, Google Pay, ACH |
| No fees | Registered nonprofits | Select countries only | Existing Facebook friends | Credit/debit card only |
When is GoFundMe the better option?
Here are some of the key advantages of using GoFundMe over Facebook fundraiser and situations when GoFundMe may be the better choice:
Raising money for individuals or personal causes
If you want to raise money directly for yourself, a loved one, friend or a personal cause or event, GoFundMe is the better option. Facebook fundraisers can only raise money for registered and approved nonprofits.
Flexible location
GoFundMe allows you to create fundraisers targeted to any country. Facebook fundraisers are restricted to certain locations. So if you need to create a fundraiser for someone located outside of the countries supported by Facebook fundraiser, GoFundMe would be the way to go.
No nonprofit affiliation required
There is no need to be an approved nonprofit organization to create a fundraiser on GoFundMe. This makes it much easier to quickly set up personal and informal fundraising campaigns.
Full control over funds
The money raised through GoFundMe goes directly to the personal account of the organizer. The organizer has full control over the funds and how they are used. With Facebook fundraisers, the money goes to the nonprofit partner and the nonprofit determines fund usage.
Flexible promotion options
While you can share your GoFundMe via Facebook, you also have the flexibility to promote your fundraiser through other channels – email, messaging apps, print materials, etc. You are not solely reliant on Facebook for promotion.
More payment options for donors
Having options like Apple Pay and Google Pay in addition to credit cards may make it easier and more convenient for some donors to give to your GoFundMe campaign.
When is Facebook fundraiser the better choice?
Here are some benefits of using Facebook fundraiser instead of GoFundMe:
Zero platform or processing fees
The lack of fees mean that 100% of money raised goes to the nonprofit. This can result in significantly more money reaching your cause compared to other platforms.
Harness existing social network
Tapping into your existing Facebook friends and followers means you can get the word out easily without having to build an audience from scratch. If you have a sizable established network, this can help drive rapid fundraising.
Raise money for nonprofit you care about
Facebook fundraisers allow you to rally help for nonprofit causes that are important to you – animals, environment, health, education, human rights etc. GoFundMe is better suited for personal fundraisers.
Nonprofit handles fund usage
You don’t have to worry about taking ownership of funds raised. The nonprofit will handle all fund allocation and reporting based on their policies.
Easy setup
Setting up a Facebook fundraiser takes just minutes by selecting a nonprofit to support. GoFundMe may require more upfront work to craft your campaign.
Tax deductible donations (in some countries)
Since Facebook fundraisers are tied to registered nonprofits, donations may be eligible for tax deductions in some geographies like the US and Canada. GoFundMe donations are generally not eligible for tax deductions.
Oversight on nonprofit activity
Facebook vets all nonprofit partners on their platform, so donors can feel assured that the organization is reputable. With GoFundMe, there is less oversight on how individuals use the funds raised.
Conclusion
So in summary:
– GoFundMe is better for personal fundraisers for individuals, groups or causes when you want full control over the funds. It also offers more location flexibility and payment options. But fees reduce the total money raised.
– Facebook fundraiser allows you to tap into your existing Facebook friends and followers for a nonprofit cause you care about. It offers zero fees and potential tax benefits for donors. But you have less control over the funds raised.
– Consider your target fundraising recipient, location, social network, desired fee structure and level of control when choosing between GoFundMe and Facebook fundraiser.
– For individual needs like medical bills, emergencies, or memorials – GoFundMe is likely the better fit. For established nonprofits – take advantage of Facebook fundraisers.
– You can even use both! Run a Facebook fundraiser for a nonprofit and promote your GoFundMe personal fundraiser to the same audience.
I hope this detailed comparison helps provide clarity on when GoFundMe or Facebook fundraiser may be right for your specific fundraising needs. Let me know if you have any other questions!
Frequently Asked Questions
Can I raise money on Facebook without a nonprofit?
No, Facebook requires that all fundraisers be associated with a registered and approved nonprofit organization. You cannot raise money directly for individuals, groups or personal causes on Facebook fundraisers.
What happens to the funds if I don’t reach my fundraising goal on GoFundMe?
On GoFundMe, you keep all money raised, even if you do not hit your goal. The platform does not have an “all or nothing” policy. Any amount raised goes to the organizer.
How quickly do I get access to the funds raised on GoFundMe?
GoFundMe releases donations to personal fundraisers within 2-5 business days after the donation is made. You must connect a bank account or debit card to receive payouts.
Can I fundraise for medical bills or emergencies on Facebook?
No, Facebook fundraisers cannot directly raise money for medical bills, emergencies or other individual needs. You would need to use GoFundMe or another crowdfunding platform for those types of personal fundraisers.
What types of nonprofits can I fundraise for on Facebook?
Facebook allows tax-exempt 501c3 public charities located in eligible countries to register as nonprofit partners. Private foundations, political groups, churches and other nonprofit types are not currently eligible.
Is there a way to make Facebook fundraiser donations anonymous?
No, Facebook fundraiser donations must be made through a Facebook account, so they are not anonymous. Donors names and amounts are visible to the fundraiser organizer and typically displayed publicly.
Can I create a fundraiser for a friend in need on GoFundMe instead of myself?
Absolutely. On GoFundMe you can organize a fundraiser for anyone as long as you have their permission. Make it clear in the campaign who will be receiving the funds.
Do I need to verify my identity on GoFundMe to receive donations?
Yes, GoFundMe requires personal fundraiser organizers in the United States and some other countries to provide identity verification before withdrawing funds. This helps prevent fraud.
Which online fundraising platform takes the least amount of fees?
Facebook fundraisers take 0% in platform or processing fees, making them the most fee-friendly option. Most other platforms like GoFundMe and Kickstarter charge at least 2-5% in fees.
Is there a limit on how much I can raise on GoFundMe?
GoFundMe does not have a fundraising limit. Some of the largest GoFundMe campaigns have raised money in the millions or tens of millions for personal causes.
Can I use both GoFundMe and Facebook fundraiser simultaneously?
Yes, you can run both a GoFundMe personal fundraiser and a Facebook nonprofit fundraiser simultaneously and promote them to the same audience. Some folks use this dual strategy quite successfully to increase donations. The platforms complement each other nicely!
Which online fundraising platform is easiest to set up?
For personal fundraisers, GoFundMe is generally simpler to set up. To launch a Facebook fundraiser, you need to partner with an eligible nonprofit organization first. GoFundMe cuts out that step for individual causes.
Can I refund GoFundMe donations?
Yes, GoFundMe has a donation refund feature that allows you to issue refunds. You can refund a single donation, multiple donations or all donations at once. Useful if you need to cancel your fundraiser for any reason.
How do I withdraw money from GoFundMe?
To withdraw GoFundMe funds, connect a bank account or debit card within your account. GoFundMe will transfer available balances every 2-5 days. You can also request instant transfers for a fee after hitting withdrawal thresholds.
Summary
– GoFundMe is better for personal fundraisers – individuals, groups, events, emergencies.
– Facebook fundraisers are better for nonprofits – zero fees and tax benefits.
– Consider your recipient, location, existing social networks, and need for control.
– For medical bills, use GoFundMe. For large charities, use Facebook.
– You can even use both platforms simultaneously to maximize donations!