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

We love using Facebook Fundraisers and the range of fundraising options available across both Facebook and Instagram – and we know lots of charities across the UK and beyond rely on Meta’s fundraising tools to generate much-needed donations to support their work.

However, Meta has just made an announcement that could risk disrupting charities’ use of their fundraising tools, due to upcoming changes to the fundraising tools available on the platform.

While charities will still be able to raise money through fundraisers or donation buttons on Facebook and Instagram, and people will still be able to create fundraisers and donate to support your charity, Meta are making a few changes to the way payments are processed – payments that were previously free to charities and covered by Meta.

From 1 November 2023, Meta will be partnering with PayPal’s Giving Fund to support donations to charities in the UK and will no longer support directly onboarded charities through Facebook Payments – the traditional way that charities could collect donations made through Facebook and Instagram.

The biggest change is that 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.

For donations in the UK, the payment processing fee structure is 1.4% + GBP 0.30. For donations in the US, the payment processing fee structure is 1.99% + USD 0.49.

You can learn more about Meta’s donation payment processing fees here.

Meta have said they want to ensure charities have the information they need to manage through this change, so the Empower team are replaying the information here so charities affected can continue to use Facebook and Instagram to raise money to support their causes.

What’s changing with Meta’s fundraising tools?

Here’s how raising money on Facebook and Instagram will be different from 1 November 2023:

• How donations are handled. From 1 November 2023, Meta is partnering exclusively with PayPal Giving Fund to support charities in the UK and will no longer support directly onboarded charities through Facebook Payments. Instead, PayPal Giving Fund will receive donations benefiting your charity and grant funds to your charity. You can find out more about PayPal Giving Fund.
• Donations from new donors: From 31 August to 31 October 2023, charities that receive donation payouts from Facebook Payments will only be able to receive donations from donors who have previously used a Facebook e-money account. Starting 16 September, charities that have taken the required action and switched to receive donations from PayPal Giving Fund can benefit from donations made by any donor.
• How donations are handled and payout timelines through 31 October. Once you take action, PayPal Giving Fund will receive donations benefiting your charity and grant funds to your charity, subject to their policies. All donations made prior to 16 September and all donations made from donate buttons and fundraisers created before you take action will continue to be processed and distributed by Facebook Payments.

Meta’s Charitable Donation Term updates

Meta are also updating their Charitable Donation Terms to reflect the changes described above.

At a high level, the updates include:

• General updates. The agreement you made to use Meta’s donation services with Facebook Payments International Limited will end on 1 November 2023.
• Access. Meta may reject, limit or cancel your access to their Charitable Donation Features for any reason at any time.
• Identifying information. Meta may identify your organization by name and use certain identifying information throughout the Charitable Donation Features.
• Donations and Payment terms. PayPal Giving Fund will receive donations benefiting your charity and grant funds to your charity, subject to their policies. The donations will be processed by PayPal. This includes donations being subject to third party payment processing fees once Meta stops covering fees.

The Empower team recommends that you read the updated Terms in full, and you should also take a moment to share these changes with your charity team.

Other changes to the way you raise money on Facebook and Instagram

Meta will also be implementing new changes that may affect the way your charity raises money on Facebook and Instagram.

• Donation payment processing fees. Meta currently covers third party payment processing fees for donations to charities and will continue to do so until 31 October. On 1 November, Meta will no longer cover such fees and donations will be subject to a payment processing fee. For donations in the UK, the payment processing fee structure is 1.4% + GBP 0.30. For donations in the US, the payment processing fee structure is 1.99% + USD 0.49.
• Changes to the donation flow. Meta are changing the donation flow to give donors the option to increase their donation amount to cover the processing fees.
• Transaction reports. PayPal Giving Fund will provide donation activity reports to charities that are enrolled with PayPal Giving Fund. Meta will continue to provide a limited transaction report in Charity Manager for informational purposes, however, will no longer issue tax documentation.
• Donation receipts. PayPal Giving Fund, rather than Meta, will provide donors with the official donation receipt that can be used for tax purposes. Meta will only provide a confirmation of donations, which donors can find by going to Orders and payments in their settings.

What actions does your charity need to take?

To avoid losing access to key fundraising tools from 1 November 2023, you are required to take the following actions.

1. Review the updated Terms and switch to PPGF. 

You must review and accept Meta’s updated Terms and confirm PayPal Giving Fund as the entity that will receive and grant donations benefiting your charity to avoid any disruptions to fundraising. 

You can review Meta’s updated Terms and switch to PayPal Giving Fund here. 

If you do not take this required action before the deadline, you will lose access to Meta’s fundraising tools and they cannot guarantee that you’ll gain access to fundraising tools again in time for #GivingTuesday.

2. Claim any outstanding funds

Charities with funds outstanding on 1 December 2023 must reach out through the Payouts contact form for support on required account actions to receive their payouts.

Already approved financial admins can find their current payout method in the Payouts section under settings.

Meta’s fundraising tool changes: Further Reading

Learn more about upcoming changes to fundraising, head to the following articles:

• About donation receipts
• About transaction reports
• How to claim outstanding funds

Get help with Meta’s fundraising tool changes

Need help adapting to the changes listed here or to maximise your use of fundraising on Facebook and Instagram?

Contact Empower now to arrange a call and see how we can help your charity raise more online.

Full List of Meta’s fundraising tool changes

1. Fundraisers on Instagram and Facebook

Donations made to fundraisers created before your charity enrolls with PayPal Giving Fund will be distributed by Facebook Payments according to its payout timelines.

Donations made to fundraisers created after your charity switches to PayPal Giving Fund will go to PayPal Giving Fund and be granted to your charity by PayPal Giving Fund, subject to their policies.*

For PayPal Giving Fund-enrolled charities, PayPal Giving Fund will distribute funds within 15-45 days. For PPGF-unenrolled charities, PayPal Giving Fund will distribute funds with a cheque within 90 days.

2. Facebook donate buttons on Pages

Donations made to donate buttons on Pages before your charity switches to PayPal Giving Fund will be distributed by Facebook Payments according to its payout timelines.

Donations made to donate buttons on Pages after your charity switches to PayPal Giving Fund will go to PayPal Giving Fund and be granted to your charity by PayPal Giving Fund, subject to their policies.*

For PayPal Giving Fund-enrolled charities, PayPal Giving Fund will distribute funds within 15-45 days. For PayPal Giving Fund-unenrolled charities, PayPal Giving Fund will distribute funds with a cheque within 90 days.

3. Facebook donate buttons on Posts

Donations made to donate buttons on posts created before your charity switches to PayPal Giving Fund will be distributed by Facebook Payments according to its payout timelines. Donations made from buttons on posts created after your charity switches to PayPal Giving Fund will go to PayPal Giving Fund and be granted to your charity by PayPal Giving Fund, subject to their policies.*

For PayPal Giving Fund-enrolled charities, PayPal Giving Fund will distribute funds within 15-45 days. For PayPal Giving Fund-unenrolled charities, PayPal Giving Fund will distribute funds with a cheque within 90 days.

4. Instagram donate buttons on profiles and posts

Donations made to buttons on Instagram profiles and posts created before your charity switches to PayPal Giving Fund will continue to be distributed by Facebook Payments according to its payout timelines.

Donations made to buttons on Instagram profiles and posts created after your charity switches to PayPal Giving Fund will go to PayPal Giving Fund and be granted to your charity by PayPal Giving Fund, subject to their policies.*

For PayPal Giving Fund-enrolled charities, PayPal Giving Fund will distribute funds within 15-45 days. For PPGF-unenrolled charities, PayPal Giving Fund will distribute funds with a cheque within 90 days.