Facebook

Facebook To Eliminate Transaction Fees On Donations

Facebook announced that it has eliminated transaction fees on donations made to non-profit organizations through its platform.

According to news from Reuters, this is a change that could help the social media network expand its presence in online fundraising.

Facebook had been charging a 5 percent transaction fee on donations made to non-profits via its website or app. In February, a petition signed by 42,000 people demanded that the site waive the fees it charges a charity for raising $1.5 million on its website.

The site will continue to charge fees on fundraisers set up by individuals, including a payment processing fee of 6.9 percent, plus 30 cents per donation.

Other online fundraising sites charge transaction fees on donations of about 6 to 8 percent, including GoFundMe, at 7.9 percent, plus 30 cents per donation, in the United States; Kickstarter at 8 percent, plus 20 cents per donation; and Indiegogo at 8 percent, plus 30 cents per donation.

Facebook is also setting up a $50 million per year Facebook donations fund, which will match any donations sent on its platform to certain causes, such as natural disaster relief.

“When I started Facebook, I wasn’t thinking about it as a way to raise money to fight diseases, but a few years in, we noticed many people were using it to raise money for different causes,” CEO Mark Zuckerberg said at a Facebook event in New York.

He also said that the company plans to launch a software program, called Fundraisers API, that will allow users to sync their Facebook fundraisers with other fundraising pages.

——————————–

LATEST INSIGHTS:

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. Check out the latest PYMNTS Digital Drive Report 

TRENDING RIGHT NOW

To Top