Meta and PayPal Giving Fund partnership puts an end to fee-free fundraising

Earlier this month, Meta announced a new partnership with PayPal Giving Fund (PPGF).

As of 1 November 2023, all donations made through Facebook and Instagram will be processed by PayPal Giving rather than Meta Payments Inc. 

What does the change mean for charities?

For the most part, the change won’t affect the way you raise money through Facebook and Instagram. You’ll still be able to raise money through fundraisers or donation buttons and access Facebook’s fundraising tools.

However, the change, which Meta says is part of a drive to ‘streamline operations’, will put an end to fee-free donations.

Historically, Meta has absorbed third-party payment processing fees, but when the switch comes into effect, charities will need to cover PPGF’s fee of 1.4% + GBP 0.30p per donation (donors will be given the option to increase their donations to cover the fees).

Deadline for action - 1 November 2023

Facebook Admins and Finance Contacts for UK charities should have received a communication detailing the upcoming changes. Anyone who has made a donation via Facebook and Instagram should also have been notified.

In case you missed the memo, there are a couple of things you need to do ahead of November 1, to avoid disruption.

1.    If you’re enrolled with Facebook Payments International Limited, you need to accept Meta’s updated Charitable Donation Terms by 1 November 2023

2.    If you haven’t done so already, you need to enrol with PPGF to receive donation payouts. If you already receive payouts from PPGF, you just need to accept the updated donation terms).

Note: If you miss the November 1 deadline, you’ll lose access to Facebook’s fundraising tools, with no guarantee that services will be restored in time for the Christmas fundraising push. So, the sooner you act, the better.

Things to note

Receipts: As of November 1, PPGF, rather than Meta, will provide donors with donation receipts.

Payouts: PPFG will make payouts to enrolled charities 15-45 days after donations have been received. Charities that aren’t enrolled with PayPal Giving Tools will receive a cheque within 90 days. 

Fundraiser end dates: Any Fundraisers that are created prior to September 15, 2023 (and before you take the required actions to switch to PPFG) will automatically end on October 31, 2023. If you want to set up Fundraisers with an end date past October 31, you need to switch to PayPal Giving Fund prior to September 15, and set up new Fundraisers after September 15.

Third sector response

Understandably, the news hasn’t landed well with charities.

Charity sector consultant Zoe Amar told Civil Society she was disappointed by Meta’s decision.

“It’s disappointing that Meta has chosen to do this now when so many charities are having a tough year due to the cost-of-living crisis. Meta’s decision is another reminder that charities need to review their dependency on social media platforms for fundraising, and plan how they can diversify their income-generating opportunities, for example through growing their mailing lists. 

I would urge Meta to reconsider this decision so that they can show support for the sector during the difficult winter ahead.”

Find out more about how Meta’s partnership with PayPal Giving Fund will affect you here.