Facebook provides several options for users to donate or raise money for causes through its platform. This includes Facebook Fundraisers, Donate Buttons, and Facebook Giving. But where does that money actually go once it leaves your account?
How Facebook Fundraisers Work
Facebook Fundraisers allow users to set up dedicated campaigns to raise money for nonprofits or personal causes. When you create a Fundraiser, you select the nonprofit you want the money to go to. Here’s what happens behind the scenes when someone donates to your Fundraiser:
- The donor enters their payment information on Facebook.
- Facebook processes the transaction and sends the money to Network for Good, a donation processing platform.
- Network for Good distributes the funds to the nonprofit the Fundraiser was set up for, minus a transaction fee.
So in the case of Fundraisers, Facebook never actually holds or touches the money. It goes directly from donor to nonprofit via Network for Good.
Donate Buttons
Nonprofits can add Donate Buttons to their Facebook Pages, allowing supporters to donate directly from within Facebook. Here is the process when someone donates via a Donate Button:
- The donor enters their payment info and confirms the donation.
- Facebook sends the money to Network for Good to process.
- Network for Good collects a transaction fee then disburses the remainder to the nonprofit.
Again, Facebook itself does not collect or hold the funds. Donate Button money goes straight to the nonprofit after processing.
Facebook Giving
Facebook Giving allows nonprofits to accept donations across Instagram, Facebook, and Messenger. Donors can opt to cover the transaction fees so the nonprofit gets 100% of the donation. Here is how it works:
- Donor initiates donation on Facebook, Instagram, or Messenger.
- Facebook sends funds to Network for Good.
- Network for Good processes donation and sends money to nonprofit.
In the case of Facebook Giving, Facebook covers all payment processing fees so 100% goes to the nonprofit if the donor selects that option.
Where Does the Money Go?
In summary, here is where money ends up when you donate via Facebook:
- The donation leaves your account as you enter payment info on Facebook.
- Facebook sends funds to Network for Good for processing.
- Network for Good takes a transaction fee then disburses money to the nonprofit.
At no point does Facebook itself hold or collect the funds. The money flows straight from the donor’s account through to the nonprofit, facilitated by Facebook and payment processors.
Facebook Fundraising Fees
There are fees associated with processing donations via Facebook. Here is a breakdown of the fees according to Facebook:
Facebook Fundraisers
- 5% fee to Network for Good
Donate Buttons
- 5% + $0.30 fee to Network for Good
Facebook Giving (Donor Covers Fees)
- 6.9% + $0.30 fee to Network for Good
Facebook Giving (Nonprofit Covers Fees)
- 0% fee
Keep in mind donors have the option to cover fees in many cases so the nonprofit can get 100% of funds. But if they opt not to, Network for Good collects processing fees before disbursing donations.
Is Donating on Facebook Safe?
Donating through Facebook introduces reasonable safety concerns. Here are some things to keep in mind:
- Legitimacy – Confirm legitimacy before donating. Fake fundraisers run scams.
- Data – Donation data may be collected by Facebook.
- Fees – Know that fees reduce the total received by nonprofits.
- Security – Facebook generally has strong security but breaches can happen.
As long as you vet any fundraisers before donating and understand the fee structure, donating via Facebook presents a fairly safe option for supporting causes.
Pros of Donating Through Facebook
Despite some concerns, Facebook donations offer benefits including:
- Convenience – Easy to set up and make donations.
- Cost – Processing fees are reasonable compared to other options.
- Visibility – Broad visibility of fundraising campaigns.
- Secure – Facebook employs strong security protections.
For many individuals, the ease of use and visibility alone make Facebook an appealing donation platform.
Cons of Donating Through Facebook
There are also downsides to keep in mind when donating via Facebook:
- Data Collection – Donation data may be collected and used.
- Scams – Fake fundraisers can run scams.
- Fees Reduce Donations – Processing fees subtract from the total.
- Indirect Money Trail – Money passes through third parties first.
Users should be cautious about data usage, vet charities first, be aware of fees, and understand the indirect path of the money.
Top Facebook Fundraisers
Here are some of the top Facebook fundraisers over the years:
| Fundraiser | Amount Raised | Year |
|---|---|---|
| Birthday Fundraiser for RAICES | $20 million | 2018 |
| Stand Up for Punits on Facebook | $12 million | 2017 |
| Fundraiser for ACLU | $11 million | 2017 |
| Time’s Up Legal Defense Fund | $10 million | 2018 |
These fundraisers show the immense reach Facebook provides. From charities to civil rights to animal welfare, Facebook has facilitated mega fundraising campaigns.
Biggest Nonprofits on Facebook
Here are the nonprofit organizations with the most Facebook followers:
| Nonprofit | Followers |
|---|---|
| World Wildlife Fund | 3.9 million |
| Salvation Army USA | 2.2 million |
| St. Jude Children’s Research Hospital | 1.5 million |
| American Cancer Society | 1.4 million |
Massive followings allow these organizations to reach more potential donors through Facebook fundraising tools.
Should You Donate Through Facebook?
At the end of the day, is donating through Facebook advisable? Here are some key considerations:
- Convenience makes donating easy.
- Vet organizations carefully before giving.
- Know that fees will reduce the total received.
- Comfort level with data practices matter.
- Impact can be amplified by Facebook’s reach.
Weighing these factors depends on each person’s priorities and values. For maximum convenience and reach, Facebook presents an excellent platform for fundraising campaigns and donations. But potential donors should also perform due diligence on any charity and understand that Facebook will collect data on activity.
Conclusion
Facebook offers users various options to donate or fundraise for nonprofits and causes. Money given via Facebook goes directly from the donor to the organization, facilitated by Facebook and third party processors. While convenient and impactful, users should be cautious of potential scams and mindful of data practices. Overall, fundraising through Facebook provides a powerful platform to channel resources to great causes worldwide.