Nonprofit Fundraising on Facebook: The Good, The Bad, and The Ugly

Nonprofits large and small are looking into social media’s newest shiny object – the free nonprofit fundraising on Facebook features.

However, many questions remain:

How do we set up and use these tools? Should we use them?

What about donor information? How do we get payments?

Is it really worth all the fuss?

Some organizations get great results from Facebook fundraisers, but other nonprofits remain perplexed or frustrated by the process.

With overall usage of Facebook down, it remains to be seen if nonprofits can reach new donors in a sustainable way on the world’s biggest social network.

Based on questions and comments that I frequently receive from nonprofits, I give you “the good, the bad, and the ugly” regarding nonprofit fundraising on Facebook:

THE GOOD

No fees.

Facebook eliminated donor processing fees after Giving Tuesday in 2017.

This only applies to donations made via Facebook Payments, not donations made on outside sites that are accessed from a link placed on Facebook.

Ease of use for the donor.

There is no denying that from the individual user perspective, making a gift on Facebook via Facebook Payments is incredibly easy.

For example, I donated to three Giving Tuesday campaigns last year, and did so in just 2 clicks each:

Ability for the fundraiser to spread.

If I donate to a friend’s Facebook fundraiser, I can then easily share it on my page, spreading the word to my friends and family with just one click.

Facebook notifications.

I’ve noticed a serious push by Facebook to promote fundraisers created by my friends, as well as encouraging me to start fundraisers of my own.

THE BAD

Have to be a 501c3.

Currently to receive donations via Facebook Payments, nonprofits have to meet a serious of qualifications, listed here.

Little control over the fundraisers.

As with anything on Facebook, it’s based on the priorities of the company, and not your priorities.

You cannot control much beyond text and visuals.

It can take time to get approved.

If you do meet all of the requirements, after you register it can take up to a month to get approved.  

Slow payments.

Payouts can take up to 45 days to receive in some cases. See more information on Payouts here.

Reports are confusing.

When registered with Facebook and receiving donations, you receive two reports: the Daily Transaction Report and the Payout Report. These can be confusing for nonprofits to interpret.

No customer service.

As with all the free social networks, there is no customer service hotline and it is incredibly difficult to speak to a real person if you have a question or a concern.

And, the biggest con and strike against nonprofit Fundraising on Facebook…

THE UGLY

You do not get information on the donors.

In the Daily Transaction Report, you will get details like First Name, Last Name, Amount Donated, and Email Address ONLY if the donor decides to share it. You do not get any other contact information about your donor.

Conclusion: Explore Cautiously

To determine if nonprofit fundraising on Facebook will work for your nonprofit, always return to your goals.

What would you like to achieve by setting up fundraisers on Facebook?

If you want some quick cash for a specific project, then Facebook fundraising may be the way to go.

If you want to build your donor file and build relationships with donors, fundraising on Facebook is not the best avenue for long-term donor retention.

Nonprofit fundraising on Facebook may be valuable to your organization. However,I always say, do not build your house on rented land.

Join me in new Orleans for my workshop on this topic at #18NTC – the Nonprofit Technology Conference!