The 2018 Trends in Giving Report by Nonprofit Tech for Good and PIR.org revealed something interesting: 45% of major donors ($10,000 or more) prefer to give online, including through Facebook fundraisers.

By default, when a donor gives to a Facebook fundraiser it's public. The nature of social giving is inspiring others to give. However, when it comes to major donations, your donors may want to remain anonymous. The basic premise of anonymous giving is that society on the whole doesn't respond well to behavior outside of what evolutionary biologists call "established norms."

In other words, we're hardwired to look down on someone who makes a grand altruistic gesture because it makes the rest of us look or feel bad.

Sometimes major donors want to remain anonymous for religious reasons, so they don't become a target for other nonprofits, they don't want the attention, or they're uncomfortable with their wealth.

How to Reconcile Anonymity with Tax Compliance

A common misconception is that "anonymous" means "untracked." To stay compliant with the IRS while respecting donor privacy, follow the "Internal vs. External" rule:

• The IRS Requirement: For any gift of $250 or more, the IRS requires the nonprofit to issue a contemporaneous written acknowledgment. This means your internal database (CRM) must have the donor's legal name and address to generate a valid tax receipt.
• The Privacy Reality: Just because you have the donor's name in your records doesn't mean it has to be public. Nonprofits are not legally required to disclose individual donor names on the public-facing portion of their Form 990 (Schedule B is generally redacted for public viewing).
• The Facebook Workaround: When a donor gives "privately" on Facebook, the nonprofit still receives the donor's name and email in their payout reports. You can (and should) still send them a tax receipt privately via email, even if their name never appears on the fundraiser’s "Supporters" scroll.

Key Takeaway: You can assure your major donors that they will receive their full tax benefits without ever having their name listed in an annual report or social media feed.

Donors can contribute to a Facebook fundraiser anonymously. From the drop-down box "Who can see this post" just select "private" instead of "friends". (The creator of the fundraiser and the nonprofit will see the donation so it's not entirely anonymous.)

Let your community know they can remain anonymous when giving to a Facebook fundraiser and and you may attract larger donors.