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Facebook is Changing the Fundraising Rules




There is something scarier than Halloween happening on October 31st, Meta, parent to Facebook and Instagram, is hooking up with PayPal. What does this mean?


This means the end to an era. According to Meta, peer-to-peer fundraising on Facebook and Instagram raised $7 billion since 2013. In 2017 Facebook eliminated the transaction fee for charitable donations. Now, Meta will no longer process charitable gifts on Meta Payments. This is where PayPal comes in. All donations made on these two platforms will be processed through the PayPal Giving Fund.


Wait, there’s more.

Under the system that’s been in place since 2013, a nonprofit registered with Facebook Pay received donations made through Meta once or twice a month. The new partnership between Meta and PayPal means that donations are actually made to the PayPal Giving Fund, who will generate its donation receipt for the donor. Payments will be made monthly to the charities enrolled in the program.


And there’s even more.

The PayPal Giving Fund reserves the right to redirect funds to other charities if a nonprofit does not meet their requirements.


Pivot

If your organization has been using Facebook or Instagram for peer-to-peer fundraising, it’s time to reconsider this strategy. Let your donors know why you are making this change and ask them to give their contributions directly to you.


One reason why donors like to use Facebook and Instagram is because it’s easy. Make donating easy for your supporters. Does your Donate button work on your website? Is your donation page easy to navigate? Are you able to send your gift receipts in a timely manner?


This collaboration between Meta and PayPal could be a good thing, maybe. But we will need to rethink our donor strategy and social media presence. We will need to be more intentional in our communications with our donors, let them know how their dollars are used, and show our gratitude in a more genuine way. This is all good, thanks Meta/PayPal.



Michelle Crim, CFRE


Dynamic Development Strategies can help. We offer coaching, grant writing, and fundraising services for our nonprofit clients. We specialize in small to mid-size organizations because we understand your challenges. Please contact us for more information.


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