Facebook Fundraiser Feature

Facebook Fundraiser Payout: How It Works for Nonprofits

October 7, 2020
Share This
Contact GoodUnited today to optimize Facebook fundraising for your nonprofit.

When it comes to payment processing for digital donations, even the most experienced nonprofit professionals can get confused. With all of the steps happening out-of-sight, it can seem like the funding appears out of nowhere.

This uncertainty can be incredibly inconvenient for nonprofits that depend on digital donations. When you don’t know how funds are processed, when they’ll be delivered, and how much will be deducted from them due to processing fees, it’s difficult to plan for future efforts.

This is especially true for Facebook fundraising, which has not one but four different payout methods for nonprofits. 

At GoodUnited, we have dedicated time and resources to researching and optimizing Facebook Challenges for nonprofits just like yours. While doing so, we’ve familiarized ourselves with the payout process and strive to help organizations understand exactly what goes on behind the scenes.

We’ve broken the key questions surrounding the Facebook fundraising payout process into the following points:

One of the many mysteries surrounding Facebook fundraising is how nonprofits like yours actually receive the funds intended. Use the navigation above to jump to the sections that pique your interest, or continue reading from the top to demystify the process.

Explore the four Facebook fundraiser payout channels in this section.

Facebook Fundraiser Payout: Understanding the Payout Channels

What Facebook fundraiser payout channels are used?

Which channels are used to facilitate Facebook fundraiser payout?

To understand Facebook fundraiser payout, you first need to understand the channels that Facebook uses to process donations.

There are four channels used to facilitate Facebook fundraiser and Challenge payout. These channels are:

  • Facebook Payments. This channel processes payment for nonprofits located in any area that can access Facebook’s fundraising tools.
  • Network for Good. This channel conducts payments for nonprofits located in the United States.
  • PayPal Giving Fund. This channel conducts payments for nonprofits located in Australia, Canada, and the United Kingdom.
  • Razor Pay. This channel exclusively serves Facebook fundraisers conducted on behalf of nonprofits in India.

As far as which channel will process donations to your nonprofit, that depends on two things: whether you register directly with Facebook’s fundraising tools and where your nonprofit is located. 

Your nonprofit has the choice to register directly with Facebook Payments or be opted-in to the alternative channel offered in your location. 

There are key differences between how payments are processed with each method, so it’s important to conduct research for your organization and opt-in to the channel that best fits your needs. For example, while Facebook Payments operates on a bi-weekly timeline, Network and PayPal have a payout timeline ranging anywhere from 15 to 90 days. And, while Payments has the potential to provide donor information as well as fundraiser information, the other channels do not.

The graphic below outlines the differences between each channel in more detail:

Facebook fundraiser payout is handled through Facebook Payments, Network for Good, PayPal Giving Fund, and RazorPay.

For more information about these payout methods and where they differ, check out this page in the Facebook Help Center.

For the purposes of this guide, we’re going to take a deep-dive on two of these payout paths: Network for Good and Facebook Payments. This is because Network for Good and Facebook Payments are the payout methods available to nonprofits in the U.S. and, in the case of Payments, the channel we recommend your organization register with.

In this section, dive deeper into Facebook fundraiser payout through Network for Good and Facebook Payments.

How are payments processed through Facebook Payments and Network for Good?

Now that we’ve covered the basics of each payout method, let’s look closer at payment processing through Facebook Payments and Network for Good.

Both processes start the same:

  1. A user starts a fundraiser or joins a Facebook Challenge in support of your nonprofit.
  2. Their friends, family members, and colleagues donate in support of the effort. These donors choose whether they want to share their contact information (email) with your nonprofit.

However, this is where the two processes diverge.

Facebook Payments is a direct payout system. This means:

  1. The donations go directly to Payments and then are routed to your nonprofit, two weeks after the initial minimum fundraising threshold is reached ($100).
  2. These bi-weekly payments continue for as long as funds are raised, and the donations are directly deposited into your nonprofit’s merchant account.

On the other hand, Network for Good is a donor-advised fund (DAF). A DAF is a specialized type of philanthropic savings account in which donations are placed, left to accrue interest, and then eventually directed to the nonprofit they’re intended for. Because of this, the payout process is slightly different:

  1. Donations are sent to Network’s DAF during month one.
  2. These donations sit in the DAF accruing interest.
  3. During month two, these donations are routed to your nonprofit. This could be a direct deposit (if you register with Network) or a mailed check.

In total, donation processing via Network for Good can take anywhere from 45-75 days. For nonprofits looking to raise funds through Facebook quickly, this extended timeline can make a huge difference. 

This is what we recommend for Facebook fundraiser payout.

GoodUnited’s Recommended Payout Route

While both Network and Payments will deliver funding safely to your nonprofit, we recommend nonprofits align directly with Facebook fundraising by signing up for Payments. 

There are a few different reasons why we recommend this route:

This is why we recommend Payments for Facebook fundraiser payout.

  • The payout timeline is faster. Donations that are in limbo do little to help your nonprofit achieve its goals. The payout timeline with Payments is not only faster but it’s also on a reliable schedule. This gives your nonprofit quicker access to funds and the ability to plan around the donations raised.
  • You can rest assured that funds will be delivered. Network uses GuideStar to align funding with nonprofits. This means that if your organization’s profile isn’t updated, you might not receive the funding at all. On the other hand, Payments send the information directly to the account that you tell it to.
  • You access the Donation button on your nonprofit’s Facebook page. Unlike when you process through Network, Payments gives your nonprofit access to direct donation buttons on your page. This means that you can collect donations on the platform outside of formal fundraisers and Challenges.
  • There is potential to access donor information. As a nonprofit professional, you’re well aware of the power of thanking donors. Facebook Payments provides you with a donor’s name and, at times, their email address (if the donor opts-in to share it). On the other hand, Network must report all donations as anonymous due to Facebook’s privacy policy.

When you register directly with Facebook Payments, you not only receive funding faster— but you also have the opportunity to access valuable donor information. At GoodUnited, we’ve found information just like that to be game-changing for nonprofits looking to increase donations to their organization, something you’ll read more about later in this piece.

When it comes to Facebook fundraiser payout, how do you withdraw funds?

How To Withdraw Money From a Facebook Fundraiser

Now that we’ve discussed the two main payout paths your nonprofit might encounter with Facebook fundraising, let’s look at how you can align your organization with these paths to ensure you receive your funding in a timely manner.

First, a brief discussion of Network for Good. Technically, your nonprofit doesn’t need to register with Network to receive funding through this channel— that’s why you may have already received Facebook fundraiser donations without conducting research about the process before. However, we highly recommend registering directly with Network if you plan to use this payout method.

Network uses GuideStar to match donations to unregistered organizations. So, if your GuideStar profile is outdated, Network could end up sending the funding to the wrong location. Even further, that check will be physically mailed which can leave additional room for error. If you register directly with Network, you can verify the account you’d like funds direct deposited into and avoid these speedbumps.

That said, we want to dedicate additional space in this article to discuss signing up for Facebook Payments, as that’s our recommended payout method.

How can you sign up for Payments for effective Facebook fundraiser payout?

How To Sign Up For Facebook Payments

As a recap, we recommend signing up for payments because it’s the fastest payout method in North America and it has the potential of providing donor information. But, there are a few steps your nonprofit needs to take to sign up with Facebook Payments:

These are the steps to sign up for Payments, if that's your chosen Facebook fundraiser payout channel

  1. Create a charity Facebook page that is categorized as a nonprofit or charity organization.
  2. Ensure this page is verified.
  3. Collect the following information: Your organization’s official name, address, contact info, tax ID, and nonprofit category, your CEO or executive director’s name, date of birth, and business address, and a legible bank statement or official bank letter dated within the last 3 months.
  4. Fill out an application for Facebook Payments.

After completing these steps, your nonprofit will be notified of approval within two to three weeks. Then, you can begin receiving donations from Facebook fundraisers and Challenges and access Facebook’s fundraising tools, such as the donation button.

With that covered, let’s discuss a few frequently asked questions regarding Facebook fundraiser payout.

This section covers frequently asked questions about Facebook fundraiser payout.

Frequently Asked Questions About Facebook Challenges Payout

What is the timeline of Facebook fundraiser payout?

How long does it take to get money from Facebook fundraising?

The timeline of Facebook fundraising payout can vary greatly depending on the payout channel you’re working with. This is one reason why it’s crucial to research the various payout methods— if timeliness is imperative for your organization, that might affect your choice.

There are a few aspects to consider beyond simply aligning with the payout channel that has the ideal timeline for your team. For instance, the payout process doesn’t begin until your nonprofit reaches the minimum raise amount, $100. So, one way you can speed up payout is simply by empowering fundraisers started on behalf of your organization to raise more funds, faster.

Here are a few tips to speed up Facebook fundraiser payout.

If you’re seeking the fastest possible payout, this is what we’d recommend:

  • Intervene in fundraisers. Share thank you notes, helpful tips, and encouragement with the users that started them. GoodUnited' Facebook fundraising services allow you to focus on other aspects of your mission while experts help maximize your funding through these notes of appreciation and encouragement.
  • Signing up for Facebook Payments. As we’ve discussed, Payments is the fastest way to get paid for Facebook fundraisers and one-off donations in North America.

That said, ultimately your nonprofit won’t need to worry about quick payout if that minimum fundraising threshold is never met.

Are there fees associated with Facebook fundraiser payout?

Are there fees associated with processing Facebook fundraising donations?

As of 2017, there are no fees associated with processing Facebook fundraising donations through any of the payout channels.

While there are costs associated with the administrative and payment processing tasks, Facebook covers these fees for all fundraisers held on behalf of accredited nonprofit organizations. 

This was brought on by a landmark petition, in which a nonprofit and its supporters asked the platform to waive fundraising fees during a time of need. To learn more about this history, check out GoodUnited’s guide to Facebook fundraiser fees.

This makes Facebook one of the few online fundraising methods with no processing fees. Meanwhile, the peer-to-peer platform, online giving page, and crowdfunding platform you’ve used in the past likely take anywhere from 3% - 6% from every donation to cover processing fees.

Details like this are why Facebook fundraising is such a crucial fundraising channel for nonprofits like yours to optimize.

Understanding Facebook fundraiser payout, how should your nonprofit handle requests for refunds?

How should your nonprofit handle a Facebook fundraiser refund?

Facebook fundraiser payout is handled through a variety of channels, three of which are external channels separate from the Facebook platform itself. Because of this, your organization can’t simply process a refund and return gifts made to donors on your own.

There are a variety of reasons why a donor might seek a refund. They may have accidentally made too large a donation, contributed by accident, or simply may have changed their minds. Regardless of the reasoning, the donor’s next step is to contact Facebook directly with the refund request.

With regards to Facebook fundraiser payout, donors must contact Facebook directly for a refund.

It follows then, that your nonprofit should handle requests for refunds by directing the donor to Facebook’s help center. 

How can your nonprofit increase your Facebook fundraiser payout?

How can your nonprofit increase your Facebook fundraiser payout?

Donations don’t magically appear on Facebook to be transferred to your nonprofit. The donations come from donors who are moved to support your cause. So, to increase your Facebook fundraiser payout, you need to go straight to the source— the fundraisers and the donors who give to them.

Here are a few tips to increase Facebook fundraiser payout.

At GoodUnited, we specialize in helping nonprofits just like yours optimize Facebook fundraisers to raise more donations and build long-lasting relationships with social media supporters. Here are a few stand-out tips we’ve discovered to increase the donations raised on your behalf:

  • Thank each and every fundraiser. First and foremost, send a personalized thank you to each user that starts a fundraiser on your behalf. When you work with GoodUnited, 100% of fundraisers are thanked.
  • Connect with fundraisers via Facebook Messenger. When doing so, share tips, encouragement, and gratitude. When thanking fundraisers, we invite them to opt-in to a custom, automated messaging sequence that does exactly that.
  • Use the data Facebook provides. Facebook provides basic information about donors, such as their name and potentially their email address if they opt-in to share it. Use this information to follow-up with donors via email.
  • Host Facebook Challenges throughout the year. Facebook Challenges are time-bound fundraising events that offer a low barrier to entry for participants. Popular examples include asking participants to walk a certain number of steps, volunteer a number of hours, or run a number of miles over the course of a month. Simply invite users to participate in the Challenge and add them to a corresponding Facebook group with their fellow participants. Challenges are easy to host and easy to join, so it's a great way to supplement your fundraising revenue.

These are just a few of the many ways we’ve found that nonprofits can interact with fundraisers and elevate them to raise more. At GoodUnited, we help nonprofits do all of the above and more. For help increasing your nonprofit’s Facebook fundraising potential, contact us today.

To learn more about Facebook fundraising and optimizing the process for your nonprofit, explore the following additional resources:

Contact GoodUnited today to optimize your nonprofit's Facebook fundraising efforts.

More Blog Posts