Facebook provides a convenient platform for connecting with friends, family, and causes you care about. Many nonprofit organizations have Facebook pages where they share information and solicit donations. With just a couple clicks, it seems like you should be able to make a donation directly through Facebook. However, while Facebook does provide tools to collect donations, there are some limitations on directly donating money through the platform.
Why Doesn’t Facebook Allow Direct Donations?
There are a few key reasons why you can’t simply donate money directly to a nonprofit via their Facebook page:
- Facebook focuses on being a platform to connect people and organizations, not a payment processor. They provide tools for nonprofits to fundraise, but stop short of directly facilitating financial transactions through their platform.
- Facebook avoids the regulatory requirements and risks involved with processing donations. Things like verifying 501(c)(3) status, anti-fraud checks, taxation paperwork, and donor reporting introduce overhead and liability that Facebook prefers to avoid.
- Direct donations would likely require Facebook to take a transaction fee, which could seem invasive or undermine nonprofit fundraising efforts.
Essentially, while Facebook provides excellent tools for nonprofits to engage their supporters, collect donations is not part of their core business. They have opted to connect people to causes, while stopping short of directly facilitating the financial transaction side of charitable giving.
What Payment Options Does Facebook Provide for Nonprofits?
Instead of direct donations, Facebook offers integrations with payment partners that nonprofits can use to collect donations through their Facebook presence. Main options include:
Personal Fundraisers
Facebook users can create personal online fundraisers for nonprofits they care about. This allows peer-to-peer fundraising tied to events like birthdays or accomplishments. The donations go directly to the nonprofit via integrated payment partners like PayPal and DonorPerfect.
Donate Buttons
Nonprofits can add a Donate button to their Facebook page and posts. When clicked, this button leads users off Facebook to a donation page on the nonprofit’s website to complete the transaction. The nonprofit website can process payments however they choose.
Facebook Live Fundraisers
Fundraisers can go live on Facebook to fundraise for a nonprofit. Donations from supporters during the live video go directly to the nonprofit via payment partners.
Peer-to-Peer Fundraisers
Similar to personal fundraisers, the Giving Tools offered by Facebook allow any user to set up a fundraiser for a nonprofit they care about. The donations go to the nonprofit through Facebook’s payment partners.
Shopping Tools
Nonprofits can showcase products on their Facebook page. When users click to purchase, transactions are completed on the nonprofit’s website, with the nonprofit controlling payment processing.
“Donate” Augmented Reality Sticker
Facebook has tested an AR donation sticker nonprofits can add to stories and ads with a button to donate off of Facebook.
How Do I Donate to a Nonprofit on Facebook?
If you come across a nonprofit on Facebook you’d like to donate to, here are the steps to complete the donation through Facebook’s tools:
- Click the Donate or Fundraise button on their page or in a post. This will take you to an outside website to complete the donation.
- If the nonprofit has enabled personal fundraisers, you can start one by clicking “Create Fundraiser” and following the steps.
- When live fundraising videos occur you can donate in real-time during the broadcast.
- Peer-to-peer fundraisers can also be created and shared on your timeline for friends to contribute to.
- Shopping integrations allow you to complete purchases of branded merchandise, with profits going to the nonprofit.
In most cases you’ll be redirected off Facebook to complete the financial transaction through secure payment processing selected by the nonprofit. This allows them to receive the donation directly without relying on Facebook’s platforms.
The Pros and Cons of Facebook Donations
Facebook provides excellent exposure for nonprofits and convenient tools for supporters to fundraise. But the lack of direct donation processing has advantages and disadvantages:
Pros
- Avoids regulatory burdens and liability risks for Facebook
- Enables nonprofits to maintain control of donation processing and donor data
- Easier for nonprofits already equipped to process donations
- Nonprofits avoid Facebook transaction fees
Cons
- Added steps for donors to complete transaction off Facebook
- Harder for smaller nonprofits without existing donation processing
- Less data available to nonprofits on donors for stewardship
- Nonprofits absorb payment processing costs instead of Facebook
There are reasonable arguments on both sides of whether direct donations through Facebook would be beneficial or not. Facebook has clearly leaned towards keeping their platform focused on their core competency of connecting people and organizations. But they continue developing new tools to enhance how nonprofits leverage Facebook to fundraise and engage supporters.
Should You Donate Through Facebook or Directly?
When considering donations through Facebook versus directly to a nonprofit, a few key factors:
- Convenience – Facebook adds extra steps, so donating directly can be simpler in many cases.
- Processing Costs – Donations through Facebook payment partners incur processing fees, while direct donations avoid third-party costs.
- Tax Receipts – Nonprofits usually can’t provide receipts for Facebook fundraiser donations, while direct donations always generate receipts.
- Data and Stewardship – Nonprofits get more data on donors from direct donations they process themselves.
For one-time donations, direct donations often provide a smoother experience and more transparency for the donor. But Facebook provides excellent tools for recurring or peer-to-peer fundraising that tap into supporters’ networks. Utilizing both online and direct donation options enables nonprofits to maximize their fundraising reach and donor retention.
Top Tips for Donating Through Facebook
If you do choose to donate through a Facebook fundraiser or campaign, here are some tips for a great experience:
- Look for the blue verified badge. This confirms you’ve identified the legitimate nonprofit page.
- Read fundraiser descriptions thoroughly. Facebook has limited vetting, so it’s important to understand exactly what your donation will support.
- Avoid donating “in honor of” someone. Facebook makes it hard for honorees to track these gifts.
- Consider recurring gifts. Ongoing monthly donations can be easily set up via Facebook.
- Share fundraisers. Leverage your own network by sharing fundraising posts and personal fundraisers.
Following these best practices helps ensure your gift has maximum impact when going through Facebook channels.
Alternatives to Donate Outside of Facebook
If donating directly through Facebook doesn’t work for you, here are some alternatives to consider:
The Nonprofit’s Website
Every nonprofit has a website where you can donate directly, avoiding third-party platforms. This allows you to view financials, gift benefits, and stewardship information transparently.
Peer-to-Peer Sites
Sites like GoFundMe allow you to fundraise for nonprofits you choose. These can also leverage your networks but may charge higher fees.
Text-to-Donate
Many nonprofits enable donating to them via text message, using shortcodes and keywords to trigger a donation that appears on your phone bill.
Workplace Giving
Ask your employer if they allow payroll deductions to charity. This allows donating straight from your paycheck to the nonprofit.
Legacy and Estate Gifts
Larger donations can be made via bequests in your will or beneficiary designations from retirement accounts or life insurance.
Volunteering
Donating your time and talents directly to a nonprofit can provide immense value beyond just monetary contributions.
The Future of Facebook Donations
Facebook will likely continue expanding its fundraising tools, doubling down on enabling nonprofits to leverage the platform. But direct donation processing would require a major shift for Facebook. While not currently an option, a few possibilities in the future:
- Partnerships with payment processors could enable smoother donations without Facebook handling the transaction.
- Peer-to-peer payments via Facebook Pay could extend to donations.
- A dedicated Facebook Nonprofits app could provide enhanced fundraising tools.
- Regulatory changes or incentives may prompt Facebook to handle charity transactions.
- Facebook could remain committed to connections over transactions, while enhancing other giving options.
It’s unlikely Facebook will radically change their approach soon, but innovations in peer-to-peer payments and messaging/social integration could lead to gradual improvements in leveraging their platform for donations.
Conclusion
Facebook offers compelling tools for nonprofits to engage supporters and fundraise. However, you currently can’t directly donate within Facebook itself. Understanding the reasons why, and how to best utilize Facebook’s existing options, enables you to maximize social giving. Donating directly when possible provides a smoother experience. But recurring through Facebook or leveraging friend networks also plays an important role. Hopefully Facebook continues improving how its massive reach and engagment can support vital charitable causes. But for now, options outside Facebook itself remain the best way to financially contribute to your favorite nonprofit causes.