Important changes to Facebook Fundraiser tool will affect your in-platform donation processing
Social media companies are constantly switching up how things work – much to the frustration of nonprofit fundraising and marketing professionals! This latest update from Meta is of particular concern because of its potential impact on fundraising revenue for nonprofits.
For several years, Meta, Facebook and Instagram’s parent company, has offered in-platform fundraising options through Network For Good that allowed users to generate fundraising donation pages within the social media platforms themselves. Since 2017, Meta had been covering the fees on all donations made within their platform.
However, as of November 2023, Meta will no longer cover the fees to process these donations. Additionally, all donations made through the Facebook Fundraiser program will transition to be processed through PayPal Giving Fund (PPGF).
What does this mean for nonprofits?
Changes are coming, whether you like it or not. Bookmark this page (or share it with your Facebook Fundraiser manager!), so you’re not caught off guard by the updates you see and you’re ready to adapt to them.
Here are some of the updates you will see, in detail:
One of the biggest and most concerning impacts of these changes is that Meta will no longer cover payment processing fees on donations made using Facebook Fundraising. The new fee policy is as follows:
- Charge 1.99% + $0.49 in payment processing fees for verified nonprofits
- Give donors the option of covering the fees
New Donation Processor – PayPal Giving Fund
Old Donation Processor – Network For Good
As of October 31, all donations collected by the Facebook Fundraiser product will be processed by PayPal Giving Fund.
Any recurring donations set up in Network for Good will end. The last payment processed will be October 31, 2023. As of today, Facebook no longer supports recurring donations. They hope to bring back this feature in the future.
Although recurring giving may be leaving Meta’s Facebook Fundraisers, you should still make cultivating this group a priority of your fundraising programs! BDI Academy’s Shellie Speer-Burnett recently highlighted the reasons why recurring giving programs are too valuable to ignore.
For organizations approved for PayPal Giving Fund, payouts can take between two weeks and 45 days. For those not enrolled, it can take up to 90 days to receive your funds via check. Make sure your organization is enrolled and approved now by following the steps in the next section.
Enroll with PPGF
Nonprofits that want to continue to use the Facebook Fundraiser product will want to enroll and be verified with PayPal Giving Fund.
Step 1: Create a PayPal Business Account
Use your SSN and the nonprofit’s bank account to create the account
Step 2: Confirm your Nonprofit Status
Verify your nonprofit using the EIN and Bank Statement
Step 3: Enroll with PayPal Giving Fund
Using your confirmed PayPal Account, you will enroll in the PayPal Giving Fund program
BDI can help you build a robust digital acquisition strategy – beyond Facebook Fundraisers – that leverages data insights and dynamic testing to reach your target donors. Please feel free to email me if you’d like to learn more! Change can be a little tricky, but with these insights, you’re equipped for smooth sailing through Facebook’s fundraising transition.
Stay informed on the latest digital fundraising trends, keep your donors in the loop, and together, let’s continue to release generosity!