Who gets the money from a Facebook fundraiser?

Facebook fundraising has become an incredibly popular way for individuals, non-profits, and charities to raise money. With minimal fees and the power of social media behind it, Facebook makes fundraising accessible and simple. But what happens to the money that is donated through Facebook fundraisers? Where does it go and who gets it?

How do Facebook fundraisers work?

Facebook provides a platform for fundraisers to create a campaign and collect donations. All money donated goes directly to the nonprofit organization or cause specified by the fundraiser organizer. Here’s a quick rundown of how it works:

An individual sets up a fundraiser through Facebook and selects a nonprofit organization to receive the funds.

Friends and followers can donate to the fundraiser through Facebook, using credit/debit cards or PayPal.
Facebook processes all donations and sends the money directly to the designated nonprofit organization.
The nonprofit receives the total amount raised minus a small processing fee.

So in short, the fundraiser organizer doesn’t ever handle the money. Facebook acts as the intermediary to collect and deliver the funds safely to the intended nonprofit.

What fees and costs are involved?

Facebook fundraisers involve very minimal fees, making them one of the most efficient ways to fundraising. Here are the typical fees:

Facebook does not charge any platform or maintenance fees to fundraiser organizers.

The nonprofit receiving the donation is charged a small processing fee per donation. This is typically around 5% for charities and 6.9% + $0.30 per donation for personal causes.
Donors are not charged any fees.

Compared to other fundraising platforms, these costs are remarkably low. GoFundMe, for example, charges a 2.9% + $0.30 processing fee per donation for personal campaigns. For charities, GoFundMe charges a 5% platform fee.

Are there any limits on the amount that can be fundraised?

Facebook does not set specific limits on how much money an individual fundraiser can raise. However, there are some restrictions in place:

Personal fundraisers for individuals (not nonprofits) have a $20,000 goal limit per fundraiser.
Facebook reviews fundraisers that bring in very large donations for potential fraud. Amounts over $1000 especially may trigger review.

Nonprofits must be registered with Facebook’s valid nonprofit partners to be eligible.

As long as the fundraiser abides by Facebook’s terms and conditions, there is no cap on the total money that can be raised for nonprofit causes.

How does the nonprofit receive the money?

Once a fundraiser ends, it takes some time for Facebook to process all donations and transfer money to the nonprofit. Here is the general process:

Facebook tallies up the total amount raised over a 7 day period after the fundraiser ends.
About 15 days after the fundraiser ends, Facebook will notify the nonprofit that the money is available.
The nonprofit must provide their payment information and confirm they are set up to receive donations.

Facebook will initiate a transfer of the total amount raised minus fees to the nonprofit’s bank account or PayPal.
The nonprofit typically receives the money within 7-10 business days of confirming their payment information.

So in total, it takes approximately 3-4 weeks after the end of the fundraiser for the nonprofit to get access to the money. It is not instant, but the process is relatively quick and hands-off for the nonprofit.

What payment methods can be used to donate?

Donors to Facebook fundraisers have several options when it comes to payment methods:

Credit or debit card – Donors can use Visa, Mastercard, American Express, or Discover branded credit or debit cards. Facebook processes these donations directly.
PayPal – For those who prefer to use their PayPal account to donate, this is seamlessly integrated.

Facebook Payment – In some countries, donors can use their Facebook Payment account balance to donate.
Offline donations – Offline donations made outside of Facebook can be marked towards a Facebook fundraiser total.

Facebook carefully encrypts and secures all payment information. They meet industry standards for data protection when processing transactions.

Who can create a Facebook fundraiser?

The requirements to start a Facebook fundraiser depend on the type of fundraiser it is:

Personal Fundraisers

Available to individuals over 18 years old with a personal Facebook profile.
Intended to raise money for oneself, another person in need, or a pet’s medical costs.

Must abide by Facebook’s community standards and fundraising policies.

Nonprofit Fundraisers

Available to registered directors or employees of a nonprofit organization.
The nonprofit must be registered with Facebook as a valid fundraising partner.

Charity registration and vetting requirements vary by country.

Fundraisers deemed fraudulent or that violate Facebook’s terms will be removed. Authenticity and transparency are crucial when creating any fundraiser.

Can businesses raise money on Facebook?

Typically, for-profit businesses are not allowed to create Facebook fundraisers. However, during COVID-19, Facebook has temporarily allowed businesses to create fundraisers under these conditions:

100% of funds must assist businesses impacted by COVID-19.
The business must be registered and in good standing in the country where it wants to raise funds.
A business representative must run the fundraiser using a personal Facebook profile.

Fundraising policies and community standards apply.

This exception is designed to help struggling businesses access capital during COVID-19 related shutdowns and restrictions.

What types of fundraisers are allowed on Facebook?

Facebook permits these general types of fundraisers:

Personal fundraisers for medical bills, emergencies, pets’ medical costs, or memorials
Nonprofit fundraisers benefitting registered charitable organizations
COVID-19 related fundraisers for businesses (temporary allowance)

All fundraisers must adhere to Facebook’s fundraising policies and community standards. Prohibited fundraisers include:

Fundraisers promoting hate, violence, harassment, bullying, discrimination, or intolerance
Fundraisers that violate or encourage non-compliance with any applicable law or regulation

Fundraisers supporting or glorifying terrorism or terrorist organizations
Fundraisers with deceptive, false, or misleading information

Can individuals create fundraisers for their own business or income?

No, personal Facebook fundraisers may only raise money for an individual’s needs, not businesses. Some examples of prohibited fundraiser causes:

Raising money to start a new business
Raising money to pay one’s own business costs or debts
Raising funds for a business marketing campaign

Raising money to invest in a business opportunity

Facebook specifically prohibits fundraisers “used for private profit or commercial purpose.” Necessary living expenses for an individual are allowed.

How can nonprofits get approved for fundraisers?

For a nonprofit to be eligible to receive funds from a Facebook fundraiser, it must complete Facebook’s nonprofit registration process. Here are the steps:

Visit the Facebook for Nonprofits website and click “Get Started.”
Search for the organization and submit proof of nonprofit status.
Once approved, agree to Facebook’s Nonprofit Terms and submit tax documentation.

Set up a nonprofit Page and at least 2 admin roles.
Nonprofit eligibility is then verified by Facebook over 1-3 weeks.

This verification process ensures only legitimate nonprofits can receive fundraising proceeds. Nonprofits must keep their registration current to maintain fundraising access.

What nonprofit causes are not permitted on Facebook fundraisers?

Facebook prohibits fundraising for certain types of nonprofits or charitable causes. Restricted causes include:

Nonprofits encouraging illegal activity, self-harm, hate, or violence
Nonprofits supporting terrorist individuals or groups

Nonprofits making false claims or distributing misleading information
Nonprofits that have had their charity status revoked

Facebook reviews nonprofit causes to ensure fundraisers align with their values and community standards. Certain nonprofits may be rejected during the registration process.

Can individuals create fundraisers for political campaigns or candidates?

No, Facebook does not allow fundraisers supporting political campaigns, candidates, or any partisan political purpose. This includes:

Raising money for a candidate running for office
Raising money for a political party or political convention

Raising money to support lobbying efforts or political advocacy

Facebook aims to remain neutral and not provide fundraising support for any partisan political activities.

What reporting does Facebook provide on fundraisers?

Facebook offers fundraising organizers detailed analytics and reporting on their campaigns. Fundraiser creators can view:

Total amount raised
Number of unique donors
Average and largest individual donations

Breakdown of amounts raised per day
Demographics of donors (age, gender, location)

This data helps organizers understand what messaging and strategies were most effective in raising money. Nonprofits can better target and market future fundraisers with these insights.

Does Facebook process donations from all countries?

Facebook processes donations for fundraisers in most countries globally. However, there are a few nations where regulatory restrictions prevent Facebook fundraisers:

Countries where Facebook Fundraising is Available	Countries where Facebook Fundraising is Unavailable
United States Canada United Kingdom Ireland Australia New Zealand Most of Europe Some countries in Asia and South America	China India Pakistan Vietnam South Korea Countries under US sanctions (e.g. Iran, North Korea, Crimea)

Donations can only be processed to registered nonprofits or personal beneficiaries in countries supported by Facebook fundraising.

What are the pros and cons of Facebook fundraisers?

Some key advantages and disadvantages of raising money through Facebook include:

Pros:

Extremely low fees compared to other fundraising platforms
Leverages the power and reach of social media
Easy and fast set up process

Seamlessly integrated donation processing
Funds go directly to beneficiary’s bank account or PayPal
Detailed analytics and reporting

Cons:

Must have an active Facebook profile and follow policies
Only direct donations are processed (not pledges)
Funds are not instantaneously available

Technical difficulties or errors may disrupt fundraiser
Facebook may block fundraisers that seem risky or fraudulent

Conclusion

Facebook offers individuals and nonprofits an easy yet powerful way to fundraise for nearly any cause. With minimal fees, integrated donation processing, and social media accessibility, turning supporters into donors is simple and low-cost. Funds go directly to the intended beneficiaries once donated.

While not quite as full-featured as dedicated fundraising platforms, for most causes Facebook provides an unbeatable option for grassroots fundraising. As with any financial transaction, however, donors should research the fundraiser organizer and beneficiary before contributing to ensure the cause is legitimate.