How to Adapt to Meta’s Fundraising Tool Changes

The fundraising landscape is always changing – especially when you rely on third parties, like Meta, for your fundraising. Meta* recently announced changes to their fundraising tools – many of which will impact organizations that currently use Meta for fundraising.

If your organization uses Meta’s fundraising tools, you should have received an email with a complete list of these changes and required actions. You must take action as soon as possible, or you will lose access to Meta’s fundraising tools and disrupt your fundraising. 

*Please note that these changes apply to Facebook and Instagram. 

Changes to Meta’s Fundraising Tools

Starting on October 31st, raising money on Meta will be different. Here are some of the key changes that are being made to the Meta fundraising tools.

The PayPal Giving Fund Controls the Donations

Donations that benefit US, UK, CA, and AU nonprofits will be processed exclusively through the PayPal Giving Fund, instead of Meta Payments.

The PayPal Giving Fund is a Donor Advised Fund. A DAF is a private fund administered by a third party – PayPal, in this case – and created to manage charitable donations on behalf of individuals, families, or organizations.

DAFs are an important giving vehicle for many – but removing Meta Payments as an option makes fundraising with Facebook or Instagram less appealing. Let’s get into why.

As a DAF, donations for your organization are actually made to the PayPal Giving Fund. In turn, PPGF considers the donor’s recommended charity, granting funds to organizations based on their Nonprofit Certification Policy. There is no guarantee the donation ends up with the donor’s intended organization. In 2020, the PayPal Giving Fund settled a lawsuit for its lack of transparency around this policy.

The partnership with PPGF will also change payout timelines, transaction reports, and donation receipts.

• Payout timelines: PPGF will distribute funds according to their timelines. If your organization is enrolled with PPGF, you can expect to receive your payout within 15-45 days. Payouts take much longer – up to 90 days- for organizations not enrolled with PPGF.
• Transaction reports: Meta will no longer provide tax documentation but will still provide limited data in the Nonprofit Manager. Instead, PPGF will provide enrolled nonprofits with donation activity reports.
• Donation receipts: In the future, Meta will only provide a donation confirmation to donors and will no longer provide donors with their official donation receipts. After the change goes into effect, PPGF will provide donors with official receipts.

Since Meta Payments processing is no longer an option, faster payout times and guaranteed funding distribution are no longer available.

Recurring Donations and Campaigns Are No Longer Supported

Meta stopped supporting recurring donations and their campaigns on September 15th, 2023. Existing payment processing partners are expected to pay out all recurring donations through October 31st, 2023.

Recurring donations are a vital source of steady and predictable income for nonprofit organizations, allowing them to plan and execute long-term initiatives confidently. Ending the feature on the Meta platforms will present a challenge for many organizations.

This change will likely impact Giving Tuesday 2023, though no news about the platform’s plans has been posted.

Processing Fees Are No Longer Covered

Facebook first dropped transaction fees for charitable donations in 2017, covering about $1.2 million in processing fees. The new processing fee structure is a 1.99% + $0.49 fee per donation.

Instead, Meta is expected to roll out a new donation process that will allow donors to increase their donation amount to cover third-party processing fees if they so choose. This option works similarly to our Fee Recovery add-on, allowing donors to give the intended gift amount to the organization.

How to Adapt to Meta’s Fundraising Tool Changes

These changes will require organizations to rethink their fundraising strategies, especially if they rely solely on Meta platforms to fundraise. Adapting to any change is crucial for the long-term sustainability of your organization. Regarding Meta’s fundraising tool changes, your organization should consider diversifying fundraising methods, prioritizing donor engagement, and launching or upgrading your online donation site.

Educate and Engage Donors

Communicate with your donors about the changes to Meta’s fundraising tools – especially recurring donors. If you already have a GiveWP site with Recurring Donations, guide your Meta donors to your site and ensure they renew their recurring gift with your organization directly.

Additionally, educate your donors on the new processing fee structure. In the past, these fees were covered by Meta, so the entire donation amount went to your organization. Ensure your donors know the fee structure, understand that the fee comes out of their donation and that they understand how important it is to cover those fees by increasing their donation.

Create or Upgrade Your Donation Site

Being at the mercy of a social media platform – where policies and algorithms constantly change – can be frustrating. If your organization still needs to get its own fundraising site, creating one should be the next thing on your list. While creating – or upgrading – your site requires an upfront investment of time and resources, the long-term benefits make it a valuable choice.

Here’s a list of benefits nonprofits experience when they have their own online donation site and process:

• Brand Consistency: Maintain a consistent brand identity, ensuring your website aligns with your mission, values, and visual aesthetics.
• Customization: Control the design and functionality of donation pages, allowing for tailored user experiences.
• Data Ownership: Retain full control and ownership of donor data, which is crucial for personalized communications, reporting, and analysis.
• Direct Relationship with Donors: By managing your donation site, your organization can build direct relationships with donors and gain deeper insights into your supporter base.
• Reduced Dependency: Become less reliant on third-party platforms, reducing vulnerability to changes in their policies.
• Custom Fundraising Features: Implement unique fundraising features and campaigns using tools like Recurring Donations, Tributes, Peer-to-Peer, Text-to-Give, and more. You can even use tools like Fee Recovery to ensure the whole donation goes to your cause.
• Flexibility: Adapt your site to suit changing needs, responding quickly to emerging opportunities or challenges.
• Control Messaging: Craft your messaging, storytelling, and impact narratives to resonate with your target audience.
• Integration with Other Systems: Seamlessly integrate your donation site with other essential systems such as Salesforce, ActiveCampaign, Google Analytics, and more.
• Donor Trust: A professional, dedicated donation page can instill greater trust in donors, as it conveys seriousness and commitment.
• Donor Experience: Customize the donor experience to make it user-friendly and aligned with your mission.
• Fund Allocation: Designate how donations are allocated transparently, ensuring donors know where their funds go. Allow donors to fund a specific program or initiative with Funds and Designations options.
• Sustainability: Reduce dependence on third-party platforms, whose relevance depends on their users.
• Innovation: Experiment with new fundraising methods and technologies, staying at the forefront of digital fundraising trends.

If Facebook is your only communication channel, you’re missing out on a range of donors and the opportunity to drive online donations. Diversifying your communication channels and ensuring donors can give to your organization in a way that suits their needs – on your site or via social media – is paramount to your success.

Join Us for a GiveLIVE to Discuss the Changes to Meta’s Fundraising Tools

The changes implemented to Meta’s fundraising tools demand a shift in how nonprofits approach their fundraising efforts. Relying solely on third-party platforms like Meta can be unpredictable. By creating your own online fundraising solution, you can unlock a world of benefits that allow your organization to craft donor-centric experiences, strengthen trust, and secure long-term financial stability.

Join us on October 18th to discuss the changes to Meta’s fundraising tools and how your organization can adapt and pivot. We’ll be live streaming on YouTube and Facebook, with an open Q&A period at the end of the session.