Social media has become an indispensable tool for nonprofits seeking to raise funds and awareness for their causes.
Among the various platforms, Facebook (now Meta) stands out as a powerhouse for nonprofit fundraising. Since launching its fundraising feature in 2016, Facebook has helped nonprofits and personal causes raise $5 billion.
Facebook's fundraising capabilities offer nonprofits a streamlined way to solicit donations while generating awareness and attracting new supporters. This dual benefit has made Facebook a go-to platform for organizations aiming to amplify their fundraising efforts and expand their reach.
In this article, we'll explore how nonprofits can use Facebook for fundraising, the pros and cons of this approach, and essential tips to help organizations maximize their fundraising success on the platform.
Table of Contents
- What is Facebook Fundraising and How Does it Work
- Facebook Payouts 2023 Update: How Will You Secure Funds
- Why Should You Use Facebook Fundraiser to Raise Money
- What Are the Challenges of Running a Facebook Fundraiser
- How to Create a Fundraiser on Facebook to Raise Money
- Pro Tips to Raise More Funds Through Facebook Fundraisers
- Parting Thoughts on Facebook Fundraiser
- FAQs on Fundraising on Facebook
What is Facebook Fundraising and How Does it Work
A Facebook fundraiser is an online medium with a dedicated Facebook page created by individuals or nonprofits to raise money for a cause or person. These fundraisers account for 97% of nonprofits' revenue on Facebook.
Anyone 18 or over can create a fundraiser on behalf of your nonprofit to celebrate their birthday, in memory of a special one, or as part of a personal fundraising effort.
Creating a fundraiser page is simple: add a cover photo, description, posts, and links. You can even set a fundraising goal, celebrate milestones, and match donations.
Personalization tools make it easy to customize stories or cover photos. Adding a personal touch to the fundraisers helps donors show their connection to the cause and motivates their peer network to act.
While it's up to the individual supporter to create and promote their Facebook Fundraiser, your organization can maximize the overall results by developing its initiatives. Nonprofits can create their Facebook page to engage their donor base and raise money.
Having access to Facebook Fundraising tools is vital in both cases, whether you're fundraising yourself or your supporters on your behalf.
Your first step towards starting with a fundraiser is to verify your nonprofit status with Facebook.
Eligibility Criteria
To meet the platform's eligibility requirement for access to its fundraising tools, your organization must:
- Be a recognized 501(c)(3) nonprofit in the US.
- Have a dedicated Facebook page that's at least two days old.
- Specify your organization's Facebook page category as "Charity organization" or "Nonprofit organization."
- Include nonprofit addresses in the "About" section of the Facebook page.
- Have at least one post on your organization's page.
If you meet this criteria, you can apply for the fundraising tools. The approval process can take time, maybe a month. Once approved, you can access Facebook's suite of tools and view detailed analytics to measure your fundraising success across the platform.
Facebook Payouts 2023 Update: How Will You Secure Funds
Facebook uses four channels to facilitate payout for fundraisers:
- Meta Pay:
Processes payments for nonprofits in an area where Facebook fundraising tools are accessible.
- Network for Good:
Facilitate payouts for nonprofits located in the United States.
- PayPal Giving Fund (PPGF):
Conducts payments for nonprofit organizations in the US, UK, Australia, and Canada.
- Razor Pay:
Serves Facebook fundraisers conducted on behalf of charities in India.
North America's Facebook fundraiser payout process was primarily done through Network for Good or Meta Pay.
Starting October 2023, Facebook fundraising partnered exclusively with PayPal Giving Fund for nonprofits in the United States, United Kingdom, Canada, and Australia. They will no longer process donations with Meta Pay or Network for Good.
Key points to note about PayPal Giving Fund Facebook fundraisers payout process are:
- Transaction Fee:
PPGF will charge payment processing fees of 1.99% of each donation + a $0.49 transaction fee for each donation received. For example, for every $100 donation, you will receive $97.52.
- Payout Timelines:
Funds will be distributed within 15-45 days for enrolled nonprofits and within 90 days for unenrolled nonprofits.
- Transaction Reports:
PPGF will offer detailed reports on transactions, while Meta will provide limited transaction reports and not issue any tax documentation.
- Donation Receipts:
PPGF will issue official tax receipts, while Meta will only offer confirmation for donations.
Why Should You Use Facebook Fundraiser to Raise Money
Facebook is a widely popular social media platform that connects people to what matters to them: family, friends, interests, causes, and beliefs.
Fundraising on Facebook allows nonprofits to communicate their message to an interested audience of supporters. With 88% of donors who have given through Facebook Charitable Giving Tools stating they're likely to do so again, nonprofits have a higher chance of raising funds for their cause.
More than $5 billion in donations have been raised using the platform's fundraising tools. Here are some benefits of using the platform:
1. Extends Reach
Having 3.049 billion monthly active users, Facebook enables nonprofits to extend the reach of their campaign to vast potential advocates and donors. Even if you cannot convert everyone into your supporters, a small percentage will translate to many donors and lead to an upsurge in funds.
With Facebook's worldwide reach, engage with supporters from different countries and expand your fundraising beyond local communities.
2. Easy to Setup at Lower Cost
Once your nonprofit organization is verified, creating a Facebook fundraiser is straightforward.
Compared to other fundraising methods like direct campaigns, fundraising on Facebook costs less. There are no upfront costs or platform fees for creating a fundraiser campaign on the platform. You only have to pay a processing fee, which your donors can choose to cover.
3. Easily Collect Donations
Making donations on the platform is easy and safe. The short donation form doesn't require additional information, increasing the chances of people donating. Facebook users can link their payment information to their account on the platform for fast giving.
Anyone who comes across the fundraising page can donate without leaving the platform. All donations are wire-transferred straight to the nonprofit.
4. Offers Social Proof
Social proof describes the tendency of people to make decisions and actions based on other people's behavior. It convinces people that they should also invest in something that gained attention or revenue from others.
When Facebook users notice their friends or family members giving to your nonprofit cause, they may be personally compelled to do so themselves.
5. Trust and Credibility
Many people trust Facebook and are comfortable using it for transactions, lending credibility to a nonprofit's fundraising efforts on the platform.
What Are the Challenges of Running a Facebook Fundraiser
Every fundraising platform has some obstacles. Here are some common challenges of Facebook fundraisers.
1. Lack of Donor Data
Through every campaign, nonprofits aim to collect donor data to add to the cultivation funnel. On Facebook, you don’t get any donor information unless they decide to opt in – and only a few do. This limits your ability to thank your donors, welcome them to your nonprofit, and build a relationship with them for future engagement.
2. Payout Delays and Limitations
For organizations approved for PayPal Giving Fund, payouts take between two weeks and 45 days for enrolled nonprofits, not all approved ones. For those who are not enrolled, it takes up to 90 days to receive funds via check.
3. Limited Control Over Fundraising Experience
When it comes to Facebook fundraisers, there is little room for you to customize the donor or fundraising experience. You only control the cover photo, campaign title, and description.
4. No Recurring Giving
One of Facebook's biggest drawbacks after the October 31, 2023, updates is the lack of recurring donation options. Recurring giving is automated contributions that occur at a certain donation interval. It offers a steady stream of income to help nonprofits sustain their operations.
Facebook is no longer supporting recurring giving or recurring donation campaigns. There are other fundraising sites that support recurring donations for nonprofits.
How to Create a Fundraiser on Facebook to Raise Money
Here is a breakdown of the two popular ways your nonprofit and its individual supporters can raise funds directly on Facebook.
How Do Supporters Start Fundraisers on Facebook?
To create a fundraiser on Facebook, your supporters will have to follow these steps:
- Visit the Facebook fundraisers page to create a fundraiser, or if you are already logged in to Facebook, navigate to fundraisers through the menu.
- Click on “Raise Money” and select “Charity” or “Nonprofit.”
- Search for their supporting nonprofit organization and select it.
- Pick a cover photo and write a message about their motivations for raising funds.
- Set a target goal amount and add an end date for the fundraiser.
- Click “Create”!
The fundraiser is shared on the individual’s Facebook profile so they can invite their Facebook friends and family to donate to it. Although your supporters create the fundraiser, you still have work to do. Your main goal is to encourage supporters to start these fundraisers and help them to increase their chances of success.
How Do Nonprofits Create Fundraisers on Facebook?
Nonprofit organizations can use Facebook fundraising tools to create a fundraiser on the platform.
1. Nonprofit Page Fundraiser
Start by clicking on the nonprofit manager of your Facebook account and find the tab labeled “Fundraising Campaigns.”
Under this, click on “Create campaign” and select “Create a fundraiser.” Add information such as description, goal, and deadline. Include an engaging cover photo and go live with your fundraiser on Facebook.
2. Donate Button
Facebook donate buttons are the most popular and convenient way for donors to contribute to your nonprofits without leaving the platform. When you create a business page for your organization, Facebook allows you to place a call-to-action right below the profile’s cover image as well as on:
- Facebook post
- Facebook Stories
- Live Stream and Reels
When a supporter fundraises on your nonprofit’s behalf or reshares your posts, your donate button will be automatically included, allowing you to reach a broader audience.
3. On-Page Ads
With Facebook on-page ads, you can target a specific group of people with your message, including previous fundraiser creators and donors. You can also directly re-engage supporters with a history of raising funds or contributing to your nonprofit.
Since a donate CTA is already included in the ad, secure direct donations without sending your supporters back to your webpage for donations.
4. Facebook Challenges
Facebook challenges are peer-to-peer, time-bound fundraising campaigns that engage your supporters in a fun way to raise funds. Participants agree to complete a specific task during the challenge over a defined period.
They will join a Facebook group to connect with others involved, share progress updates, and donate to fundraisers.
To develop a Facebook challenge, follow these steps:
- Log into your Facebook account and click on the profile picture at the top right.
- Switch to the nonprofit’s page.
- Click “Fundraisers” on the left and then “Raise Money.”
- Select “Create a fundraiser challenge.”
- Enter details about the challenge and click “Create” on the bottom left.
You will be taken to the challenge page where, on the right, under the fundraiser photo, click on “Add group.” Use an existing group or add or create a new one. Don’t forget to share your fundraiser within your network by pinning it on your Facebook feed.
Pro Tips to Raise More Funds Through Facebook Fundraisers
1. Create Fundraiser Individually
The main asset you have for your Facebook fundraiser is personal relationships. Your followers know and trust you. People are more willing to give to someone they know. Have them start their own instead of asking your supporters to share the same campaign.
Remember, people give to people they know and not to people's friends. This means a charity should not run just one Facebook fundraising and have everyone share it.
Encourage your staff and supporters to create their own and help them by providing an impactful and engaging message alongside a cover photo.
2. Share Your Facebook Fundraiser
Ask your supporters and members to share the fundraiser created by your organization within their network. It can also be shared through other channels, such as Instagram, WhatsApp, or other communication tools.
Having your followers share your fundraiser helps reach those outside your immediate network. When supporters share a campaign they've given to, it offers social proof that convinces others to contribute, too.
Pin the Facebook fundraiser post as the top post on your page until it concludes. You can also pay to "boost" your fundraising posts to ensure they reach more people. Ensure you're also linking to your nonprofit Facebook fundraiser on your website. Site visitors can then directly go to your Facebook page for donations.
3. Post Regular Updates
Post updates about your fundraising progress to keep your supporters motivated and interested. Share milestones like "25 people have donated so far. Let's get 20 more donors by tonight." These posts will encourage your supporters to give and keep your fundraiser visible in their news feeds.
A simple idea is to take a photo or short video of your team filling up a thermometer-style fundraising tracker as donations come in. If you're using a digital tracker, you can share screenshots showing your progress toward the fundraising goal.
4. Birthday Fundraiser
A common way people raise money on Facebook is through birthday fundraisers. They ask their Facebook friends to donate to a nonprofit instead of giving birthday gifts. Facebook reminds users about setting up a birthday fundraiser two weeks before their birthday.
Nonprofits should reach out to supporters a few weeks before their birthdays and say, "Facebook will soon ask you to do a birthday fundraiser. Please choose our organization!"
It's also a good idea to ask your staff and volunteers to set up birthday fundraisers for your nonprofit.
Here are the steps to create a birthday fundraiser:
- Log into Facebook.
- In the promotion on your Facebook feed, pick one:some text
- Select the charity Facebook has suggested
- Type your charity in the search bar
- Decide the charity to raise money for.
- Under the label "Let's start with the basics," enter:some text
- Charity name you're raising money for
- How much you want to raise
- The currency you want donations to be in
- The date you want the campaign to end
- Click next.
- Under the column "Tell your story," enter:some text
- Fundraiser title
- A brief explanation of why you're fundraising
- Click next.
- Under "Pick a cover photo," choose one of the given photos.
- Click “Create.”
5. Make it Visually Appealing
Make your fundraiser look appealing before sharing it widely. People are drawn to catchy titles and great visuals on social media. Start by creating a creative, attention-grabbing title and adding a compelling photo or video.
Pick an image highlighting your nonprofit's mission - like children you've helped, a housing project you worked on, or people you fed. Add some stats or numbers to show the impact you've made.
Offer the same images/content to your supporters running Facebook fundraisers for you. If they volunteered or participated in your events and you have photos of them, share those so they can personalize their fundraiser page.
Keep the main message simple, clear, and positive. Even if you are asking for a cause like depression or cancer, pivot back to the solution your nonprofit provides.
While providing a base branded message, leave room for supporters to tell their own stories of why they care about your cause. Their words will better resonate with their friends and motivate donations.
6. Publicly Thank Supporters and Donors
Make every donor feel appreciated by posting a thank-you note on each individual fundraiser page they created for your nonprofit.
When thanking them, use language that makes the donor the "hero" instead of just focusing on your organization. For example, if they raised $1000, say something like "Thank you! Your donation will help provide food for 20 hungry kids this month." This shows the direct impact of their gift.
Use Facebook's "Sort & Filter" tool to find and thank each new fundraiser easily. On your nonprofit's Facebook page, go to the fundraisers tab and sort to show the most recently created ones first. Then filter only to display fundraisers you haven't thanked yet.
Taking a moment to acknowledge donors this way, highlighting their specific contribution personally, will make them feel valued and more likely to continue supporting your cause.
Publish a personalized thank-you note for each supporter. Include some actionable tips for them, such as:
- Join your Facebook group to participate in conversations about your mission and share ideas and opinions.
- Reviewing other fundraising or volunteering opportunities on your website.
- Opting in to connect with your organization via Messenger
While you're thanking supporters, you should also thank donors. It can be difficult as Facebook offers limited details about donors and only shares contact details of those who have opted to do so. If you find donors sharing their info with you, take time to send a thank-you message.
7. Create a Facebook Group
After you've thanked fundraiser participants, it's time to motivate them to continue giving their efforts, time, and resources moving forward. One way to do this is by creating a Facebook group. The platform actually favors groups in its algorithms, and your supporters are more likely to see a post in the group than one made by individual friends.
Beyond the visibility, groups are the perfect solution for the following:
- Promote Events:
If you're planning fully virtual, hybrid, or offline events, Facebook groups are a powerful tool to spread the word to an interested audience and secure dedicated support. Supporters can help by sharing the event details with their network, donating to the cause directly, or offering volunteering support.
- Tailored Communication:
By creating a group for your supporters, you can share information tailored to that audience. Whether sharing fundraising perks, tips, or exclusive information, you can engage with these champions of your cause on a new level.
- New Ideas:
Creating unique ideas for fundraising events that bring your community together can be challenging. And what's a better way to find ideas than by asking the people you're targeting? Groups allow your supporters to share their fundraising ideas and tips, which are likely to drive more participation and raise funds for your nonprofits.
8. Create a Dedicated Resources Page
Some supporters may be hesitant or have questions about creating a Facebook fundraiser for your nonprofit. Make dedicated resources to guide them through the process.
Create tutorial videos showing step-by-step instructions for setting up a Facebook fundraiser. You can also have an FAQ section on your website that answers common questions.
When you see a supporter starting a new fundraiser for your organization, share these resource links with them via email newsletters or Facebook Messenger.
Providing this guidance shows your nonprofit fully supports and encourages fundraising on Facebook. It walks supporters through the steps for a successful campaign.
You can also supply pre-approved content like photos, mission statements, or impact statistics for them to use. This ensures their fundraiser correctly aligns with your branding and values.
Making these educational resources easily available removes barriers and equips supporters to run great Facebook fundraisers on your behalf confidently.
Parting Thoughts on Facebook Fundraiser
Facebook fundraisers are an excellent addition to your overall fundraising strategy. Quick to set up, no upfront cost, more cause awareness, and supporter engagement are a few benefits of running Facebook fundraisers.
There is only one problem – you don’t get all your donations! Facebook charges a processing fee of 1.99% of the donation + $0.49. For every $100 donation, you will lose out on $2.48 through transaction and platform fees.
Worry not! Zeffy offers a 100% free fundraising alternative to Facebook, with built-in tools and shareability on social media platforms like Facebook. Setting up a campaign on Zeffy takes minutes, and donors who land on it can choose to donate to your cause, fundraise for your cause, or both. The best thing? You get every penny of what you earn.
FAQs on Fundraising on Facebook
How much does Facebook take from a fundraiser?
As of 31st October 2023, Facebook charges payment processing fees of 1.99% + $0.49 in the United States and 1.6% + $0.30 in Canada.
Are fundraisers on Facebook legit?
Yes, Facebook fundraisers are completely safe and secure for raising money for nonprofits. All fundraisers hosted on the platform undergo a review process to ensure they’re for genuine causes.
How do you get approved for a fundraiser on Facebook?
You have to be a 501(c)(3) nonprofit organization with a tax ID number and bank account registered with a licensed institution and be registered with the IRS (Internal Revenue Service). Your organization’s category on Facebook must be Charity or Nonprofit Organization. The nonprofit’s address should be listed in the About section.
