Altus Dynamics Blog

What your Nonprofit needs to Know about Facebook’s new Fundraising Tools

Posted by Cait Abernethy on Jul 11, 2016 4:16:07 PM

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Exerpt taken from original article in Nonprofit Tech for Good.

The new Facebook Fundraising Tools could be a game changer for the nonprofit sector. Essentially a digital payment system that allows 2-tap giving by using a donor’s saved credit card information in their Facebook account, we are definitely entering a new era in online and mobile fundraising. Once donors understand how the technology works, there could be a pivotal shift away from donating through a nonprofit’s website.

It is a bit concerning that Facebook and other social and mobile media companies could have such power over the online donation processing industry. The hundreds of online donation service providers that have launched specifically to serve the sector could be harmed and some even put out of business. With this in mind, the entrepreneurs in the sector should be thinking about how they can use this new technology to help nonprofits process donations better and adapt quickly. The donation service providers that adapt quickly will survive this shift and in the end likely offer a better fundraising product and in the process do more good.

That being said, here are 10 key things you need to know about Facebook’s new fundraising tools:

1. The new tools are only available to 501(c)(3) nonprofits located in the United States and you must complete a three-step application process.

Many nonprofits, charities, and NGOs located outside of the United States are frustrated that most of the new online fundraising tools are not available to them. In most cases, that is due to a lack of an international database of verified nonprofits. The Facebook vetting process is made possible by GuideStar – a database of verified nonprofits operating in the United States. There are currently efforts underway to build an equivalent database on international level, but it will be a few more years until it’s ready to be used for vetting and payment processing. For nonprofits in the United States who want to use Facebook’s new fundraising tools, your nonprofit must complete a three-step application process, including page verification, a community standards review, and the creation of a donations account.

2. Once approved your nonprofit can add a Donate button to your Facebook Page.

The new Donate button (different from the Donate Now button) allows Facebook users to easily donate in three taps or less to your nonprofit using their credit card information saved in their personal Facebook accounts.

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3. Your nonprofit can also add Fundraisers to your Facebook Page for general support or for special fundraising campaigns.

Fundraisers have progress thermometers, show the number of donors, and also enable Facebook users to Invite their Friends to Join your Fundraiser. Fundraisers would make good campaign hubs for fundraising campaigns on Cause Awareness and Giving Days.

4. Your supporters can also create Fundraisers for your nonprofit and tap into their Facebook community to raise money for your organization.

Known as peer-to-peer fundraising, now is the time to begin planning on how to incorporate Facebook Fundraisers into your year-end fundraising campaigns. You likely have many committed supporters on Facebook that would be willing to ask their Facebook Friends to donate to your nonprofit over the holiday season.

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5. All Fundraisers are featured on your Facebook Page.

Be sure to monitor your nonprofit’s Fundraisers and offer words of encouragement to your fundraisers and donors. Your nonprofit should also create a web page on your website with helpful Facebook fundraising tips and share it regularly with your fundraisers on Facebook.

6. Donors can opt-in to receive email updates from your nonprofit during the donation process.

Facebook will not provide the mailing address of your donors, but it allows donors to opt-in to your email updates. Be sure to thank Facebook donors quickly via email and incorporate them immediately into your overall email fundraising strategy.

7. Donors can share their donation with their friends.

This nice little feature helps increase visibility and widens your potential donor pool.

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8. Donors are sent Donation Receipts via email.

This feature is automatic so you do not need to remember to send receipts.

9. Donors can view their Payment History under Settings > Payments.

Currently donors cannot filter their charitable giving from consumer payments made inside Facebook, but it’s very likely that in time Facebook will improve Payment History to filter donation history and include year-end tax receipts, gamification, special thank you’s, etc.

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10. Processing fees are 5% and funds are wired to your nonprofit’s bank account every two weeks.

Two percent of received donations are used to cover a portion of the costs of nonprofit vetting, security, fraud protection, operational costs, and payment support, 3% of donations go to payment processing, and Facebook will make a bi-weekly wire transfer (ACH/direct deposit) on the 15th and last day of every month to your nonprofit’s bank account. To learn more about Facebook’s New Fundraising tools, please read the Fundraisers FAQ and the Donate Button FAQ. You can apply for the new tools here.


Interested in learning how nonprofits can also use YouTube to help drive donations through the new YouTube for Nonprofits program? Download a copy of our webcast to learn how you can leverage this tool to turn those view counts into charitable donations, volunteerism, community, changes in legislation, and more!

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This Post Was Written By Cait Abernethy
Cait Abernethy is the Marketing Coordinator at Sparkrock and is excited about marketing trends, enthralled by technology of all kinds, and is interested in the ways local actions can have a global impact.
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