What are the charitable donation terms on Facebook?

Facebook provides tools for nonprofits and personal fundraisers to raise money for causes on the platform. However, there are specific terms and conditions charities and fundraisers must follow when collecting donations on Facebook.

Facebook’s Donation Terms for Nonprofits

Facebook has published “Facebook’s Terms for Nonprofits and Personal Fundraisers” that outline the policies around using Facebook tools to collect charitable donations. Here are some key highlights from Facebook’s donation terms for nonprofits:

Nonprofits must comply with all applicable laws and regulations when raising funds on Facebook.

Donations must be used for the purpose stated in the nonprofit’s fundraiser.
Nonprofits must provide donors with receipts and acknowledgements for tax purposes.
Funds collected on Facebook cannot be used to compensate fundraisers.

Nonprofits must adhere to Facebook’s Community Standards and nonprofit policies.

If a nonprofit violates any of Facebook’s terms, their fundraiser may be removed and their access to fundraising tools restricted. It’s important for charities to carefully review and comply with all of Facebook’s requirements.

Donation Tools for Nonprofits

Facebook provides several tools to help verified nonprofits raise funds on the platform. Some of the main options include:

Facebook Donations: Nonprofits can add a Donate button to their Facebook Page allowing users to donate directly.
Facebook Fundraisers: Supporters can create fundraisers for nonprofits which appear in the News Feeds of their friends.
Live Donations: Nonprofits can collect donations during live videos on Facebook.

Giving Tuesday: On Giving Tuesday, Facebook provides matching donations through partners.
Birthday Fundraisers: Users can create birthday fundraisers donating to a nonprofit.

These tools allow nonprofits to tap into Facebook’s large user base to raise significant funds. However, charities must abide by Facebook’s terms to maintain access.

Restrictions on Fundraising on Facebook

While Facebook enables fundraising for nonprofits, there are some restrictions charities should be aware of:

Personal Facebook profiles cannot collect donations – Pages are required.
Funds can only be collected by verified nonprofits, not individuals.

Gambling, raffles, and chance-based fundraising is prohibited.
Alcohol cannot be offered as a donor reward or gift.
Nonprofits must publicly display their registration and tax status.

Additionally, there are limits placed on donor visibility and the promotion of fundraisers in News Feeds. Nonprofits should review all of Facebook’s current fundraising policies before creating a fundraiser.

Donation Terms for Personal Fundraisers

In addition to nonprofit fundraisers, Facebook also allows personal fundraising for certain approved causes. If you want to raise money as an individual, these are Facebook’s donation terms to be aware of:

Personal fundraisers must be for an approved charitable purpose stated in Facebook’s policies.

You must comply with all applicable laws and regulations.
Funds can only be withdrawn to your personal bank account.
Facebook’s payment partners may require identity verification.

You cannot misrepresent your fundraiser or use funds for ineligible expenses.

Generally, personal fundraisers on Facebook must be for medical expenses, emergency relief, memorials, education, sports, or another approved category. You can learn more about creating a personal fundraiser here.

Fees and Taxes on Donations

When a nonprofit or personal fundraiser receives a donation through Facebook, there are some fees and taxes to consider:

Processing Fees – Facebook’s payment partners charge transaction fees, typically 3-5% of the donation amount.
Withholding Taxes – For fundraisers raising over $20,000, Facebook may automatically withhold taxes and issue a 1099-K form.
Sales Tax – Donors may be charged sales tax on donations in certain states.

Gift Aid – For UK fundraisers, Gift Aid tax credits can increase the donation amounts.

Nonprofits should factor processing fees into their fundraising costs on Facebook. And personal fundraisers in particular should be aware of potential tax implications.

Steps for Creating a Facebook Fundraiser

If you want to create a fundraiser on Facebook, here is an overview of the steps involved:

Go to Facebook and click “Fundraisers” in the left menu.
Choose the type of fundraiser you want to create (nonprofit or personal).
Select the nonprofit you want to fundraise for (or your approved cause).

Give your fundraiser a title, goal amount, end date and description.
Upload a fundraiser image.
Click “Create Fundraiser.”

Share your fundraiser on your Timeline, in Groups, or on other Pages to promote it.
As donations are made, the funds will be securely transferred to the nonprofit or your bank account.
Share updates and thank donors to encourage more giving.

Mark your fundraiser as ended on the scheduled end date.

Following Facebook’s policies throughout the fundraising process is essential. Their Help Center provides additional guidance.

Receiving Donations From a Facebook Fundraiser

When someone makes a donation to your Facebook fundraiser, here is how you will receive the funds:

Nonprofit fundraiser – The donation is securely transferred to the nonprofit’s bank account or donor-advised fund on file.
Personal fundraiser – The money will be sent to your personal bank account connected to Facebook Pay.

The time for the donation to process depends on the payment method:

Debit/Credit Card Donations: 2-5 business days
PayPal Donations: Up to 30 days
Donations by Check: After the check is received and processed

You will receive email notifications about new donations and transfers. The funds raised can then be used for the approved charitable cause.

Requirements for Donor Information

When someone makes a donation through Facebook, what personal information is visible to fundraisers and nonprofits? Facebook’s terms limit donor visibility:

By default, only the donor’s name is shown.

Donors can choose to display their donation amount publicly or anonymously.
Contact information like email or address is not shown.
Nonprofits only receive donor info required to process the transaction.

However, Facebook does advise fundraisers toThank donors by name when possible to show appreciation. But contact information should only be requested directly from the donor with their consent.

Reporting Requirements for Funds Raised

Do nonprofits and personal fundraisers need to report back to donors on how funds raised on Facebook are used? Facebook’s terms require some transparency:

Nonprofits must use donations for the stated purpose in accordance with nonprofit law.

Personal fundraisers should provide updates showing funds being used appropriately.
Documentation may be required if misuse of funds is suspected.
Fundraiser updates should be visible to all donors.

Financial reports by registered nonprofits are publicly accessible.

Updating donors on a fundraiser’s progress builds trust and engagement. Facebook recommends providing donors with regular updates and reports when possible.

Facebook Monitoring of Fundraising Activities

To ensure compliance with its fundraising policies and terms, Facebook monitors several aspects of fundraisers:

Content of fundraiser descriptions, updates, and images.
Budgets, goals, and funding timelines.
Distribution of funds raised by nonprofits and individuals.

Restricted categories like gambling or alcohol.
Suspicious spikes in donations or account activity.

Facebook can request financial reports showing proof of proper donation distribution if needed. Any policy violations discovered can lead to removal of the fundraiser or limiting of accounts.

Requirements for Fundraiser Promotion

How can nonprofits and individuals legally promote their fundraisers on Facebook to potential donors? Facebook places some limits on fundraising promotions:

Facebook Ad Policies restrict use of ads to directly promote fundraisers.
Posts promoting a fundraiser must follow Facebook Community Standards.

Targeting individuals for donations based on sensitive personal data is prohibited.
Posts should focus on the cause itself rather than explicit requests for money.
Over-promoting a fundraiser to the point of spam can lead to restrictions.

While social media can amplify fundraising efforts, improper or excessive promotion can violate Facebook’s terms. Creativity and community building is encouraged in fundraiser marketing.

Requirements for Issuing Donation Refunds

In some cases, a donor may need to request a refund of their Facebook fundraiser donation. Here are key policies around issuing refunds:

Refund requests must be honored unless prohibited by law.

Nonprofits must have a documented refund process.
Refunds can only be issued to the original donor.
Funds must be returned to the original payment method if possible.

Donors should submit refund requests within 30 days.

Having clear refund policies and the ability to promptly process returns helps maintain donor satisfaction and adherence to Facebook’s terms.

Donation Terms on Facebook for Political Fundraisers

Facebook allows political candidates and organizations to fundraise on the platform but political fundraisers must adhere to these additional terms:

Only verified political candidates and organizations can fundraise.
Proper disclaimers and disclosures about the nature of donations are required.
Local and regional fundraising laws must be followed.

Foreign entities banned from making political contributions cannot fundraise.
Facebook limits political ad targeting and prohibits making public donor lists.

Given the heightened scrutiny around political fundraising, following Facebook’s political advertising and fundraising policies is crucial for these groups.

Restricted or Prohibited Uses of Fundraised Money

While Facebook enables fundraising for a variety of causes, there are restrictions around how that money can be used after being donated:

Funds cannot be used for illegal or prohibited activities per Facebook’s policies and applicable laws.
Nonprofits must use funds for the specific purpose stated in the fundraiser.

Money raised via personal fundraising must follow Facebook’s approved personal fundraising categories.
Funds cannot be used to compensate fundraiser organizers, only documented expenses.
Any misuse of funds violates Facebook’s terms and may require return of donations.

Carefully following all restrictions on use of donations is key. Misdirected funds could jeopardize access to Facebook fundraising tools.

Actions Facebook May Take Against Policy-Violating Fundraisers

What actions can you expect from Facebook if your nonprofit or personal fundraiser violates any terms, policies or laws?

Facebook may remove your individual fundraiser or your organization’s access to all fundraising tools.

Donations collected may have to be refunded to the donors per Facebook’s instructions.
Your personal Facebook profile or Page may be restricted or disabled due to policy violations.
Ongoing monitoring of your account activity may be enacted to prevent further violations.

For severe or repeated violations legal prosecution may be pursued.

Having a fundraiser ended early, refunding donations, and losing account access would disrupt an organization’s fundraising abilities. So carefully following all applicable rules is strongly recommended.

Appealing Fundraiser Removal or Account Penalization

If Facebook disables your fundraiser or limits your account access over a policy violation, you may be able to appeal the action taken through these steps:

Carefully review the email notice from Facebook stating the reason for disabling your fundraiser or account restriction.
Make sure you understand which term or policy was violated resulting in the action.
If you have additional context on why the violation occurred that may influence the decision, prepare that information.

Submit a formal appeal of the disabling or restriction through Facebook’s appeal forms.
Provide your context on the violation and explain why access should be restored.
Facebook will review your appeal and notify you if the decision has been reversed or will be upheld.

If still restricted, you can try submitting another appeal after a period of time.

Having clear information on why the violation occurred is key for appeals. But keep in mind Facebook may uphold the action if serious policy breaches occurred.

Conclusion

Fundraising for charitable causes on Facebook provides valuable opportunities for nonprofits and personal fundraisers to tap into large social networks. But running donor campaigns on Facebook requires carefully following the platform’s varied terms, policies, and regulations around fundraising practices. Nonprofits and fundraisers should thoroughly review all applicable rules, stay up-to-date as they change, and consult Facebook’s advice at each stage of planning. With thoughtful preparation, fundraisers can take advantage of Facebook’s tools to generate donations while staying compliant.