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Nonprofit life

A free fundraising platform for nonprofits does exist, just not at Facebook.

September 25, 2023

One less free fundraising platform for nonprofits: Facebook Fundraisers is now charging payment processing fees.

So, why are we writing an article about Facebook Fundraisers? Well, because they’re making a pretty important change to their platform and pricing model and we think nonprofits in Canada and the United States should know. (It’s also a good opportunity for Zeffy to remind everyone that our fundraising platform is 100% free and always will be.)

As of October 31, 2023 Facebook Fundraisers will no longer be free.

Meta no longer covers donation payment processing fees. All donations will now incur a payment processing fee from a third-party payment processing partner.
- Meta

Before this decision, Facebook Fundraisers was actually 100% free for nonprofits. Similar to Zeffy, nonprofits could accept donations on Facebook Fundraiser without paying any fees. Sure, there were a couple of limitations (Read more in: Avoiding the hidden costs of “free” software for nonprofits.), but nonprofits got to keep 100% of the donations given to them.

Meta’s decision to partner with PayPal Giving Fund, means that nonprofits using Facebook’s fundraising platform will now be responsible for paying the processing fees associated with every transaction.

Meta will no longer be covering processing fees on donations made on Facebook and Instagram, so there will be an additional charge for charities on every donation made.
- Ben Matthews

Does Facebook Fundraiser charge nonprofits a fee?

Until recently, Facebook Fundraiser did not charge nonprofits any platform or transaction/processing fees. However, as of October 31, 2023, nonprofits will now be responsible for covering the third-party transaction/payment processing fees for each donation.

Yes, they are going to allow nonprofits to give donors the option of increasing their donations to cover these fees. However, if donors choose not to cover them, the payment processing fees PayPal charges in your country will be deducted from the donation.

We’re not entirely sure why Facebook Fundraisers has decided to start charing nonprofits to fundraise. They definitely don’t need the money… In 2022, Meta’s gross profit was $91 billion and in the second quarter of 2023 (April 1, 2023 to June 30, 2023), Meta had already earned a gross profit of $26 billion.4,5

How much are the transaction/payment processing fees on Facebook Fundraiser?

For donations in Canada, the payment processing fees are: 1.6% + CAD 0.30.

For donations in the US, the payment processing fees are: 1.99% + USD 0.49.

What do Facebook Fundraiser fees mean for nonprofits?

1. Nonprofits have to pay the PayPal Giving Fund payment processing fees.

Your nonprofit now has to pay the payment processing fees for every donation.

For donations in Canada, the payment processing fees are: 1.6% + CAD 0.30.

For donations in the US, the payment processing fees are: 1.99% + USD 0.49.

2. Nonprofits will be able to ask donors to cover the cost of the transaction.

If your nonprofit chooses to do so, you will now be able to ask donors to increase their donation amount to cover the cost of the transaction.

3. To keep fundraising on Facebook, nonprofits will need to:

If you’re not happy about the changes Facebook Fundraiser is making…

If you no longer want to use the Facebook Fundraiser platform for your next fundraising campaign because you’d rather keep getting 100% of every donation given to you, you can request that a fundraiser associated with your nonprofit be taken down. (And then, start using Zeffy’s 100% free fundraising platform and keep getting 100% of every donation.)

Zeffy is still 100% free and always will be.

Okay, one last shameless plug before we wrap this up. We don’t know why Meta has suddenly decided to start charging nonprofits payment processing fees—all we know is that we don’t charge any fees. How? Why? Well, we’re glad you asked.

Zeffy is funded through voluntary contributions. When donors give using the Zeffy platform they can choose to give an additional contribution. Not every donor gives every time and that's okay. Collectively, we make it work.

The why is a little less concrete. We believe that nonprofits are helping change the world for the better but they have always been limited by a system that was not designed for them to thrive. We're breaking the mould to help them.

Keep learning (our sources):

1. About payment processing fees.

2. Meta’s fundraising tool changes: Facebook Fundraisers now charged donation payment processing fees.

3. PayPal Giving Fund: Charity Transaction Rates.

4. Meta Reports Fourth Quarter and Full Year 2022 Results.

5. Meta Platforms Gross Profit 2010-2023 | META.

6. Charitable giving with PayPal Giving Fund.

7. How to claim outstanding funds.