Facebook Fundraiser Feature
Challenges on Facebook: What, Why, and How for Nonprofits
February 3, 2022
In 2017, Facebook partnered with the Bill and Melinda Gates Foundation to launch a matching gift initiative for Giving Tuesday. During this campaign, all matched funds were processed through an organization called Network for Good.
If your nonprofit has received any funding from Facebook fundraisers or Challenges, there is a decent chance you’ve encountered Network for Good at some point along the process. Whether you’re holding a birthday fundraiser or a spontaneous effort, Network for Good is one of two ways that Facebook could process the donated funds.
Understanding the intersection of Network for Good and Facebook and how to optimize the fundraising process, is key to raising donations effectively through the social network. With that said, use the below navigation to learn about specific aspects of Network for Good or continue reading to explore the full guide:
Are you ready to learn more about the donor-advised fund so closely related to Facebook Challenges? Let’s dive in.
Network for Good is a 501(c)(3) nonprofit that operates a donor-advised fund used to distribute millions in online fundraisers to nonprofits each year.
A donor-advised fund (DAF) is a specialized type of philanthropic savings account. These accounts are often managed by large financial services firms and provide a location for donors to deposit charitable funds, grow those funds with interest, and then direct the funds to a beneficiary (a nonprofit just like yours) down the line.
Nonprofit for Good also offers a suite of fundraising software for nonprofit use. However, for the purposes of this guide, we’re going to focus on the DAF aspect of Network for Good. This is because the DAF is instrumental for nonprofits to receive Facebook Challenge donations.
As you’ll soon see, Network for Good plays a major role in processing and distributing the funds raised in many Facebook Challenges. For nonprofits that have never interacted with this particular DAF before, you might be wondering:
Is Network for Good legitimate? For your nonprofit to entrust fundraising dollars to this organization, they better be.
This fund uses industry-accepted security and privacy protocols, including encryption and firewalls to keep donors’ information secure. Plus, on Network’s website, the organization provides a few key disclosures to remain transparent with organizations receiving funding through its DAF. Here’s what we know:
Each of these statements points to the legitimacy of Network for Good. And, for more information, you can review the organization’s charitable solicitation disclosures further.
With that, let’s discuss how Network for Good is involved in Facebook fundraising.
Network for Good is the intermediary between Facebook fundraising and your nonprofit’s bank account if you haven’t signed up directly with Facebook Payments.
Even if your nonprofit has never conducted research about Facebook fundraisers previously, your supporters may still be actively raising gifts on your behalf through the platform. When they do, you’ll see a deposit in your nonprofit’s account from Network for Good after the fundraiser ends. In fact, that might be what brought you to this article!
Essentially, Network for Good processes all donations made via Facebook Challenges to nonprofits that haven’t directly registered with Facebook Payments. It’s a safe channel for Facebook to deliver funds to organizations that haven’t registered, without having to worry that these organizations are fake— Network essentially handles the bulk of the verification heavy-lifting.
That said, it is a third-party partnership, so there are a few areas of disconnect that might make Network for Good the less-desirable option for organizations receiving funds from Facebook fundraising.
We’ve covered what Network for Good does in relation to Facebook fundraising, but this isn’t the only payment processing pathway that a donation made on the social network could take. In fact, there are four distinct payment processing options for Facebook donations.
For the purposes of this article, we’re going to focus on the two options for North American users: Network for Good and Facebook Payments.
Let’s explore both options to decide which pathway your nonprofit should take.
While the payout process with Network for Good is fairly straightforward, it can take a while for the donations to actually reach your nonprofit due to Network’s DAF status.
Let’s look at the steps a donation would take to make it to your organization:
In total, the process of receiving a Facebook Challenge donation processed via Network for Good will take anywhere from 45 to 75 days.
Any processing fees associated with Network for Good shouldn’t be a huge area of concern for your organization as Facebook covers all processing fees— including those paid to Network for Good. This means that even if a donation is processed through Network for Good, your nonprofit will receive the entire amount of the donation. To learn more about that, check out our comprehensive guide to Facebook fundraising fees.
When your nonprofit aligns directly with Facebook Payments, the payout process is slightly different. The first steps are the same:
However, this is where the two payout processes diverge.
Donations processed via Facebook Payments follow a significantly more streamlined path, including the following steps:
For a nonprofit looking to get paid quickly and efficiently, Facebook Payments is a great option.
As with Network, any administrative and payment processing fees amassed by Facebook when processing gifts via Payments are covered by the social platform itself.
Facebook made the landmark decision to cover all processing fees for efforts benefiting accredited nonprofits in 2017. This decision made Facebook fundraising one of the few no-fee digital fundraising methods.
As we’ve covered, your nonprofit doesn’t have to register for Facebook fundraising— with Payments or Network— to receive donations that your supporters raise through the platform. Whether you’re registered with either option or not, Network for Good will still locate your organization and ensure the funding designated for you is delivered.
That said, there are a few compelling arguments for registering directly with Facebook Payments rather than relying on Network. For example, Facebook Payments:
If your organization opts out of registering with Facebook Payments, we recommend registering directly with Network for Good. This allows the organization to electronically transfer funds to your nonprofit’s bank account rather than sending a physical check by mail— something that can be time-consuming and unreliable.
Remember when we mentioned that Facebook and Network for Good have a third-party partnership?
This means that unlike with Facebook Payments, you can’t receive any information about those that have given to your nonprofit if the donation is processed via Network for Good. This is due to Facebook’s privacy policy which requires the social network to keep all users’ anonymous when sharing donation data with Network.
With Facebook Payments, you can receive the name and potentially even the email address of fundraiser donors. While the name is always available, the email address is only shared if the donor chooses to share it. On the other hand, you can’t access any of this information from Network— all donations are reported as made by an anonymous supporter.
When it comes to stewarding donors after the fact, the simple truth is that processing Facebook Challenge donations via Network leaves valuable donor information on the table.
Whether your organization uses Network for Good or Payments, you’re unlikely to reach your full fundraising potential on Facebook if you’re not actively opting into the process. While you may know the tips and tricks to reach your fundraising goals, your supporters aren’t fundraising professionals. When it comes to raising large amounts of money, this is likely a whole new ballgame for these Facebook users!
At GoodUnited, we’ve optimized the Facebook fundraising process to help nonprofits just like yours lead supporters to success. There are a few strategies that your team can use to elevate these fundraisers to raise more. For example, you should:
All of these tips will position your organization for success with Facebook fundraising. That said, we have one more crucial tip that can supercharge your Facebook fundraising efforts:
Use Facebook Messenger to connect with fundraisers.
At GoodUnited, when we work with nonprofits to thank each and every fundraiser, we invite them to opt-in to receive communications via Messenger. Then, we share fundraising tips and encouragement through customized messaging sequences to help your supporters raise more. For more information and to access these services, contact our team today.
To learn more about Facebook fundraisers, Network for Good, and GoodUnited, explore the following additional resources:
