Understanding the Meta Changes for Nonprofits
In the ever-evolving world of social media, Facebook, now part of Meta, is making significant changes to its donation features. As of October 31, 2023, Meta is transitioning from Network for Good to PayPal Giving Fund (PPGF) to process donations. This shift will impact both Facebook and Instagram Charitable Giving Tools, including the Fundraiser API, fundraisers, and donation options, including recurring giving.
What is the PayPal Giving Fund?
PayPal Giving Fund is a charitable arm of PayPal, a widely used online payment system. It processes donations through various platforms, including eBay, GoFundMe, Nextdoor, and now Facebook and Instagram. This change means potential donors might feel safer than ever giving through social media platforms, as PayPal is a trusted and recognized name in online payments.
What Changes is Meta Making?
Meta is streamlining its projects to focus on larger endeavors like the metaverse, short-form video, and AI. The backend payment processing for donations on Facebook and Instagram will change, but most charitable organizations will find that their social fundraising practices using Meta Charitable Giving Tools will remain largely the same.
Steps to Take for Nonprofits
In the wake of Meta’s transition to using the PayPal Giving Fund for processing donations, nonprofits must take immediate action to ensure their fundraising capabilities on platforms like Facebook and Instagram remain intact. Follow these essential steps to ensure your organization is aligned with the new systems:
- Review and Accept New Terms: Nonprofits must review and accept the new terms from Meta. If you have not received an email from Facebook outline these new terms, please check your Facebook Nonprofit Manager for more details.
- Onboard with PayPal Giving Fund: Complete the onboarding process with PPGF to ensure continuous access to fundraising tools. Choosing not to onboard with PPGF will not prevent you from receiving donations through Facebook (as long as you have accepted the new terms in your Nonprofit Manager), but it will determine the cadence of when you receive your funds.
- Review Processing Fees: Understand the new processing fee structure of 1.99% + $0.49 per donation in the United States.
- (Optional) Inform Your Donors: Let your donors know they have the option to cover these additional processing fees when completing their donation.
- Ensure Payouts: Nonprofits with outstanding funds must reach out for support to receive their payouts.
Impact of the Changes
The new partnership with PPGF will introduce a new processing fee structure of 1.99% + $0.49 per donation in the United States. However, donors will have the option to cover these additional processing fees when completing their donation. PPGF will handle donations and disburse funds to nonprofits, subject to their policies, within 15-45 days for enrolled nonprofits and within 90 days for unenrolled ones.
When is the Deadline?
Nonprofits must complete all prerequisite requirements by October 31, 2023, at 5 PM PT to maintain Giving Tools eligibility. Failure to do so will result in the loss of access to Facebook Giving Tools. Nonprofits with outstanding funds must reach out for support to receive their payouts.
While these changes may seem overwhelming, they aim to streamline the donation process, making it easier and more secure for both donors and recipient organizations. Nonprofits must act promptly to ensure they are aligned with the new systems and continue to benefit from Facebook’s fundraising tools.
For more detailed information and assistance, nonprofits can refer to the official communications from Meta and PayPal Giving Fund. If you have questions about how Cause Inspired can help you manage this process or promote future fundraisers via Facebook Ads, please contact us today.