Facebook Fundraiser Payout: How It Works for Nonprofits

Update: as of October 31st, 2023 the PayPal Giving Fund will handle all donation processing on Facebook. You can read more about this update, and the actions your nonprofit needs to take to stay in compliance, on our newest blog post here.

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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 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’re dedicated to researching Facebook Challenges for nonprofits just like yours. While doing so, we familiarized ourselves with the Facebook fundraiser payout process. To help your organization understand exactly what goes on behind the scenes, we’ve broken down the topic into the following points:

• Understanding Facebook Fundraiser Payout Channels
• How To Withdraw Money From a Facebook Fundraiser
• Frequently Asked Questions About Facebook Fundraiser Payout

Demystifying Facebook fundraiser payout is one crucial aspect of optimizing Facebook fundraising for your nonprofit. The more you understand the process, the better equipped you’ll be to leverage the platform to raise revenue and cultivate support.

Understanding Facebook Fundraiser Payout Channels

What payout channels are used?

Facebook uses four channels used to facilitate payout for Facebook fundraisers and Challenges. These channels are:

• Meta Pay. This channel processes payments for nonprofits located in any area where Facebook’s fundraising tools are available.
• 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 Meta Pay 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 and choose the channel that best fits your needs. For example, while Meta Pay operates on a bi-weekly timeline, Network for Good and PayPal have a payout timeline ranging anywhere from 15 to 90 days. And, while Meta Pay can provide donor information as well as fundraiser information, the other channels do not.

Let’s take a deep dive into two of these payout paths: Network for Good and Meta Pay. This is because Network for Good and Meta Pay are the payout methods available to nonprofits in the U.S. and, in the case of Meta Pay, the channel we recommend your organization registers with.

How are payments processed through Meta Pay and Network for Good?

Now that we’ve covered the basics of each payout method, let’s look closer at payment processing through Meta Pay 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, such as an email address, with your nonprofit.

However, this is where the two processes diverge.

Meta Pay is a direct payout system. This means:

1. The donations go directly from the donor to Meta Pay 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 donated, with the gifts 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 quite different:

1. Donations are sent to Network for Good’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 for Good) 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 significantly slow their progress.

GoodUnited’s Recommended Payout Route

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

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

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• The payout timeline is faster. Donations that haven’t been paid out yet do little to help your nonprofit achieve its goals. The payout timeline with Meta Pay 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 for Good 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, Meta Pay sends the information directly to the account that you tell it to.
• You can access the Donation button on your nonprofit’s Facebook page. Unlike Network for Good donation processing, Meta Pay gives your nonprofit access to direct donation buttons on your page. This means that you can collect donations on the platform outside of fundraisers and Challenges.
• There is potential to access donor information. Meta Pay provides you with donors’ names and allows them to opt-in to ongoing communications from your nonprofit. This means you can continue to engage them through means such as conversational messaging on Messenger. On the other hand, Network for Good must report all donations as anonymous due to Facebook’s privacy policy.
  

When you register directly with Meta Pay, you not only receive funding faster—but you also have the opportunity to access and leverage valuable donor information. At GoodUnited, we’ve found this information to be game-changing for nonprofits looking to increase donations to their organization and build long-term relationships with them.

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, let’s discuss Network for Good. Technically, your nonprofit doesn’t need to register with Network for Good 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 for Good if you plan to use this payout method.

Network for Good uses GuideStar to match donations to unregistered organizations. So, if your GuideStar profile is outdated, Network for Good 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 for Good, you can verify the account you’d like funds direct deposited into and avoid these speed bumps.

That said, we want to dedicate additional space in this article to discuss signing up for Meta Pay, our recommended payout method.

How to Sign Up for Meta Pay

We recommend signing up for Meta Pay 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:

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 Meta Pay.
   

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.

Frequently Asked Questions About 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 the payout timeline. For instance, the payout process doesn’t begin until your nonprofit reaches the minimum raise amount of $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.

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

• Intervene in fundraisers. Leverage conversational messaging to share thank-you notes, helpful tips, and encouragement with the users that started them. GoodUnited's Facebook fundraising services allow you to focus on other aspects of your mission while our experts help maximize your funding through conversational messaging on the platform. This ensures you reach your minimum raise amount as quickly as possible.
• Sign up for Meta Pay. As we’ve discussed, Meta Pay is the fastest way to get paid for Facebook fundraisers and one-off donations in North America.
  

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

Are there fees associated with processing Facebook fundraising donations?

There are no fees associated with processing Facebook fundraising donations through any of the payout channels. Facebook covers all administrative and payment processing fees for all fundraisers held on behalf of accredited nonprofit organizations.

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.

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 changed their minds. Regardless of the reasoning, the donor’s next step is to contact Facebook directly with the refund request.

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?

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.

At GoodUnited, we specialize in helping nonprofits optimize Facebook fundraisers to boost donations and build long-lasting relationships with social media supporters. Here are a few stand-out tips we’ve discovered to maximize results:

• 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, we ensure that 100% of fundraisers are thanked.‍
• Connect with fundraisers via conversational messaging. Share tips, encouragement, and gratitude in real-time on Facebook Messenger. GoodUnited’s conversational messaging journeys make it easy to build long-term relationships with supporters on the platform.
• 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 in addition to conversational messaging on the platform.
• Host Facebook Challenges throughout the year. Facebook Challenges are time-bound fundraising events that are easy for supporters to participate in. 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. Invite participants and add them to a corresponding Facebook group as an effective way to boost fundraising revenue.

These are just a few of the many ways nonprofits can interact with Facebook fundraisers and empower them to raise more. At GoodUnited, we help nonprofits do all of the above and more. For help enhancing your nonprofit’s Facebook fundraising strategy and engaging supporters through conversational messaging, contact us today.

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

• Social Giving: The Fundraising Guide for Nonprofits. Explore the rise and evolution of social giving, along with how to make the most of it, in this nonprofit guide.
• How to Use Facebook Messenger: A Complete Guide for Nonprofits. Facebook makes it easy for your nonprofit to connect with supporters through conversational messaging. Make the most of Facebook Messenger with this guide.
• The Nonprofit Guide to Facebook Donation & Tax Receipts. Learn all you need to know about Facebook donation and tax receipts in this comprehensive guide.