Note from the author: This blog post was updated on September 19th, 2023 to reflect new information regarding the impact that the transition to the PayPal Giving Fund for Facebook Fundraising payment processing will have on integrated fundraisers, such as ones created from integration through platforms like Blackbaud TeamRaiser.
in summary: Any integrated fundraiser that was created before 9/16/2023 will automatically end on 10/31/2023. Integrated fundraisers created after 9/16/2023 will continue as expected past the 10/31/2023 changeover date as long as the nonprofit has accepted the updated PayPal Giving Fund terms and conditions that are outlined in this blog.
-
In an official communication sent to nonprofit partners this morning, Meta announced that, as of October 31, 2023, Meta is forging a partnership with PayPal Giving Fund (PPGF) to handle all charitable donations for U.S.-based nonprofits.
This marks a departure from Meta's previous model, which involved direct onboarding through Meta Payments, which in turn handled all donation processing on behalf of its nonprofit partners while covering all processing fees.
This blog will guide nonprofits through the important deadlines to stay eligible for Facebook fundraising, the essentials of the PayPal Giving Fund, the Meta-PayPal partnership, and updates/changes to current Facebook Fundraising features and services.
What Your Nonprofit Needs to Know Ahead of the October 31st Deadline
There’s a good amount of information to unpack with this morning’s announcement from Meta.
The biggest thing you need to pay close attention to if your nonprofit currently fundraises on Facebook: All pre-requisite requirements must be completed by each nonprofit by October 31st, 2023 at 5 PM PT to maintain Giving Tools eligibility moving forward.
Here’s the checklist that your nonprofit needs to complete in order to stay eligible, with the direct "review" link working for pages that are currently on the Facebook New Page Experience:
- Review and accept Meta’s updated Charitable Donation Terms - You can start by clicking here or navigating to your organization’s Facebook Nonprofit Manager.
Please note: if you do not complete this by the stated deadline date of October 31st, 2023 your nonprofit will lose access to Facebook Giving Tools, with no guarantee that services will be restored ahead of Giving Tuesday.
- Switch to PayPal Giving Fund (PPGF) for donation processing before the October 31, 2023 (5 PM PT) Deadline - Scroll down on the “Home” page to the prompt for “Required action” and click “Review”. Check the box accepting the new terms & conditions and click “Accept”.
- Claim Outstanding Funds - Nonprofits with outstanding funds must reach out through the Payouts contact form for support on required account actions to receive their payouts. Already approved financial admins can find their current payout method in the Payouts section under settings.
In addition to these requirements, here are 3 key points your nonprofit needs to know about:
- Donation Handling and Flow: Meta Payments will no longer process new donations after October 31. Instead, PayPal Giving Fund (PPGF) will handle donations and disburse funds to your nonprofit, subject to their policies.
Additionally, there is a new processing fee structure, which outlines a 1.99% + $.49 fee per donation. Meta will introduce a new donation flow that allows the donor to cover the additional processing fees when completing the donation. - Payout Timelines Through the October 31st, 2023 Deadline: All donations prior to September 15, all recurring donations, and all donations from donate buttons and fundraisers created before you take action will continue to be processed and distributed by Meta Payments to your nonprofit.
Once your nonprofit moves to the PayPal Giving Fund for donation processing, PPGF will distribute funds within 15-45 days for enrolled nonprofits and within 90 days for unenrolled ones. - Exceptions: Donations made before September 15 and recurring donations will still be processed by Meta Payments, as will donations from buttons and fundraisers created before the switch to PPGF.
What is the PayPal Giving Fund (PPGF)?
The PayPal Giving Fund is a registered charitable organization that helps people support their favorite causes online. It collaborates with PayPal, eBay, Meta, and other technology platforms to enable users to donate to registered charities. Here's how it generally works:
Key Features
- Donor Choice: Users can choose from a list of registered charities to donate to.
- Tax Benefits: Donors receive a tax receipt for their contributions.
- Transparency: The PayPal Giving Fund provides reports and insights into where donations are going, ensuring transparency.
- Ease of Use: The integration with PayPal and other platforms makes it easy for people to donate while conducting other online activities, like shopping on eBay or Facebook.
- Vetted Charities: The charities listed are vetted to ensure they are genuine, which adds an extra layer of security for donors.
- Global Reach: The fund has a wide range of charities from different sectors and regions, allowing for international donations.
How the PayPal Giving Fund Works
- Donation: A user makes a donation to the PayPal Giving Fund through PayPal or another partnered platform.
- Receipt: The donor receives a tax receipt from the PayPal Giving Fund.
- Funds Transfer: PayPal Giving Fund collects the donations and grants them to the donor's chosen charity, usually on a monthly basis.
- Reporting: Both the donor and the charity receive reports and confirmations regarding the donation and its use.
- The PayPal Giving Fund aims to make online charitable giving easier, more secure, and more transparent for both donors and recipient organizations.
How the Meta and PayPal Giving Fund Partnership Will Work
Starting October 31, 2023, Meta is partnering with the PayPal Giving Fund (PPGF) to facilitate donations to nonprofits in the U.S., U.K., Australia, and Canada. Nonprofits using Meta's fundraising tools must switch to PPGF by the deadline to continue using most features without disruption.
Key Points
- Switch Requirement: Nonprofits must review and accept updated Charitable Donation Terms and switch to PPGF by 5 pm PT on October 31, 2023. Failure to do so will result in losing access to some of Meta's fundraising tools.
- Donation Handling: After the deadline, PPGF will handle all new donations, replacing Meta Payments and Network for Good.
- Payout Timelines: PPGF will distribute funds within 15-45 days for enrolled nonprofits and within 90 days for unenrolled nonprofits.
- Transaction Reports: PPGF will provide detailed donation reports, while Meta will offer limited transaction reports and will no longer issue tax documentation.
- Donation Receipts: PPGF will issue official tax receipts, while Meta will only provide donation confirmations.
- On-Facebook Donation Ads: Ads set up before the switch will stop delivering after October 31. New ads must be set up post-switch.
- Outstanding Funds: Nonprofits must contact PPGF for any outstanding funds.
- Processing Fees: Meta will stop covering third-party payment processing fees after the deadline.
This change aims to streamline the donation process and is crucial for nonprofits to understand and act upon to avoid Facebook Giving Tools disruption.
Updates & Changes to Facebook Fundraising Features and Services
As of now, here’s a running list of all the known impacted features/programs related to Facebook fundraising that Meta outlined in their official communications and is reiterated in their recently updated Charitable Donation Terms.
Recurring Donations
As of September 15, 2023 Meta and Facebook will no longer support recurring donations and recurring giving campaigns.
They do look to want to bring this functionality back at some point in the future but there is no guarantee of any timeframe.
Donation Processing
Starting October 31, 2023, Meta will no longer cover payment processing fees. In the U.S., these fees are 1.99% + $0.49, and donors have the option to increase their donations to cover these fees.
Additional information on Meta’s new payment processing guidelines can be found here.
Transaction Reports and Donation Receipts
- Transaction reports: PPGF will provide donation activity reports to charities that are enrolled with PPGF. Meta will continue to provide a limited transaction report in Nonprofit Manager for informational purposes, however, will no longer issue tax documentation.
- Donation receipts: PPGF, rather than Meta, will provide donors with the official donation receipt that can be used for tax purposes. Meta will only provide a confirmation of donations, which donors can find by going to Orders and payments in their settings.
Standard Fundraisers on Instagram and Facebook
Donations made to fundraisers created before your nonprofit switches to PPGF will be distributed by Meta Payments according to its payout timelines. Donations made to fundraisers created after your nonprofit switches to PPGF will go to PPGF and be granted to your nonprofit by PPGF, subject to PPGF policies.
For PPGF-enrolled nonprofits, PPGF will distribute funds within 15-45 days. For PPGF-unenrolled nonprofits, PPGF will distribute funds with a check within 90 days.
Integrated Fundraisers on Facebook
integrated fundraiser created before 9/16/2023 will automatically end on 10/31/2023.
Integrated fundraisers created after 9/16/2023 will continue as expected past the 10/31/2023 changeover date as long as the nonprofit has accepted the updated PayPal Giving Fund terms and conditions that are outlined in this blog.
Facebook donate buttons on Pages
Donations made to donate buttons on Pages before your nonprofit switches to PPGF will be distributed by Meta Payments according to its payout timelines. Donations made to donate buttons on Pages after your nonprofit switches to PPGF will go to PPGF and be granted to your nonprofit by PPGF, subject to PPGF policies.
For PPGF-enrolled nonprofits, PPGF will distribute funds within 15-45 days. For PPGF-unenrolled nonprofits, PPGF will distribute funds with a check within 90 days.
Facebook donate buttons on posts
Donations made to donate buttons on posts created before your nonprofit switches to PPGF will be distributed by Meta Payments according to its payout timelines. Donations made from donate buttons on posts created after your nonprofit switches to PPGF will go to PPGF and be granted to your nonprofit by PPGF, subject to PPGF policies.
For PPGF-enrolled nonprofits, PPGF will distribute funds within 15-45 days. For PPGF-unenrolled nonprofits, PPGF will distribute funds with a check within 90 days.
Instagram donate buttons on profiles and posts
Donations made to buttons on Instagram profiles and posts created before your nonprofit switches to PPGF will be distributed by Meta Payments according to its payout timelines. Donations made to buttons on Instagram profiles and posts created after your nonprofit switches to PPGF will go to PPGF and be granted to your nonprofit by PPGF, subject to PPGF policies.
For PPGF-enrolled nonprofits, PPGF will distribute funds within 15-45 days. For PPGF-unenrolled nonprofits, PPGF will distribute funds with a check within 90 days.
How These Changes Impact GoodUnited (Hint: It’s business as usual)
Needless to say, the changes to payment processing from Meta have already proven to inspire a host of questions from nonprofits of all shapes and sizes.
Since GoodUnited focuses heavily on working with nonprofits to get the most from their social community on Facebook, it’s worth outlining a few key things for nonprofits if they currently work with, or are considering working with, GoodUnited.
- Do the changes announced by Meta impact GoodUnited in any way? From a macro perspective, it’s business as usual. We’ve been hard at work to ensure we build (and continue to build) a marketing automation platform that provides value for nonprofits, regardless of the changes that Meta may make, and this is a perfect example of just that.
- Will this impact Facebook revenue fundraising within the GoodUnited platform? Again, it’s business as usual for GoodUnited and its nonprofit partners. As it stands now, our team will be at work to make sure there’s a seamless cross-over come October 31st, 2023.
- Does this change how GoodUnited is able to provide social subscriber and fundraising data on its platform? Meta has stated that there will be some changes to how their API functions in the coming weeks. While we know that will impact Fundraiser and Charity Reporting API functionality, we’re confident that any changes that are announced will be able to be quickly updated on our end, making sure there’s no gap in data reporting for you and your nonprofit.
Wrapping Things Up
OK, if you made it to this point in the blog - congrats!
We know that this is A LOT to take in and there are questions, concerns, or help that may be needed to ensure your nonprofit organization continues to be able to get the most out of Facebook as a valuable fundraising channel.
Our team is happy to connect with you to help in any way - regardless if you’re working with GoodUnited or not.
Drop by our Contact Us page to submit a request to get some time scheduled with our team today.
