Facebook Fundraiser Payout: Understanding the Specifics
Most nonprofits have some basic knowledge of Facebook fundraising. But the social network and its fundraising potential is largely a point of confusion when it comes to the specifics.
That’s especially true when it comes to payment processing—a topic that’s confusing regardless of the platform you’re fundraising on. However, social media is a great way to engage your community, raise funds and move forward safely in the age of COVID-19. Remaining in the dark about the specifics of how to receive funds using this platform is no longer an option.
At GoodUnited, we work with nonprofits to optimize their Facebook fundraising efforts. We’ve created this guide to help your team understand the payout process and receive funds more successfully. This article will specifically address Facebook fundraiser payout channels and any fees associated with the Facebook fundraiser payout.
Understanding the path that donations take en route to your nonprofit from a Facebook fundraiser is key to optimizing that process for more effective engagement on the platform. The decisions your nonprofit makes regarding payout can have a direct impact on your success with Facebook fundraising— so, continue reading to dive in!
What are the Facebook fundraiser payout channels?
There are four payout paths used to process Facebook fundraiser donations. The following graphic, pulled from GoodUnited’s guide to Facebook fundraiser payout, covers a summary of all four:
For North American nonprofits, the choice comes down to Facebook Payments and Network for Good. There are a few key differences between the two:
- Facebook Payments: Payments is a direct payout method. Your nonprofit receives funds as a direct deposit into your nonprofit’s merchant account two weeks after the minimum payout threshold is reached.
- Network for Good: Network is a donor-advised fund, which is a specialized type of philanthropic savings account. Funds processed through Network are deposited into the account, sit for some time, and then eventually directed to the nonprofit they’re intended for.
Both payout processes are triggered after the amount raised for your nonprofit on Facebook passes the minimum payout threshold, or $100.
Users can start Facebook fundraisers on behalf of your nonprofit whether you officially sign up for fundraising or not. In those instances, Network for Good is the channel used by default. On the other hand, your organization has to sign up directly to have funds processed via Payments. The latter is the path we recommend. Here’s why:
Does it matter which payout method you choose?
We tend to recommend nonprofits sign up directly with Facebook Payments rather than rely on Network for Good for several key reasons:
- Facebook Payments has a two-week payout timeline, rather than the multi-month timeline for Network for Good.
- If a donor opts-in to share their email address, you can receive it through Payments. Meanwhile, all donors are reported as anonymous through Network.
- When you sign up for Payments, you gain access to the “Donate” button on Facebook.
- Signing up for Payments confirms with Facebook where your donations should be deposited. On the other hand, Network has to identify your nonprofit and where the donations should be deposited, leaving room for error.
When it comes to choosing between Network and Payments, the decision is relatively straightforward: sign up for Facebook Payments to make the most of the fundraising platform. However, there is one final thing to consider: fees.
Are there any fees for Facebook fundraiser payout?
Whether you work with Facebook Payments or one of the other three payout channels, there are zero fees associated with Facebook fundraising for nonprofit organizations.
This dates back to a 2017 decision by the team at Facebook, in which they chose to cover the 5-6% processing fees associated with donations made on the platform. This decision applies to all donations made to accredited nonprofits and makes Facebook fundraising one of the few digital fundraising platforms where organizations retain 100% of the donations made.
Think of it this way: If your nonprofit raises $100 on Facebook’s platform, you receive $100. With another platform, you may see a 5% fee deducted before the donation reaches you— so that $100 donation is now only $95. On a large scale, the implications of this are huge!
Zero payment processing fees through Facebook holds true whether your organization receives donations via Network, Payments or another payout method.
Some nonprofits struggle to find a balance between traditional and innovative fundraising methods. But, incorporating these new fundraising methods in an intuitive manner is the best way to do so.
The gist of it is that your nonprofit should opt-in fully to Facebook fundraising because it is one of the few fee-free fundraising methods. You should then use Facebook Payments since it is the more efficient payout method of the two available to North American nonprofits.
Nick Black is the founder and CEO of GoodUnited, a venture-backed Software as a Service startup. It helps nonprofits like the Wounded Warrior Project, American Cancer Society and World Wildlife Fund create 1:1 relationships with their donors through the combination of data science and human judgment delivered in conversational messaging platforms. Nick's work with GoodUnited resulted in him being named The University of North Carolina at Chapel Hill’s 2017 Distinguished Young Alumnus.
Nick has been an innovator and leader at the intersection of business and social impact for over 10 years. The concept for GoodUnited came through Nick's work co-founding and leading Stop Soldier Suicide, a 501(c)(3) that grew from startup to national leader in reducing veteran suicide to the national average in 10 years. Stop Soldier Suicide’s growth and impact resulted in Nick being selected as a Presidential Leadership Scholar and a Leadership North Carolina Fellow.
Nick co-founded Stop Soldier Suicide stemming from his experiences leading Paratroopers as a Ranger qualified Army Officer with the 173rd Airborne during 27 months deployed to combat zones in Afghanistan. During Nick's six years of service, he was awarded two Bronze Stars, an Army Commendation Medal for Valor. As a Field Artillery Officer, he was repeatedly ranked 1st among 50 peer officers in a premier infantry battalion.