Critical Changes You Need to Know to Maintain Access to Powerful Tools and Prompt Payment of Contributions from Meta
Meta (formerly Facebook Company) is beginning the transition of a new partnership for payouts, which will affect nonprofits that use Facebook’s Fundraising Tools on Facebook, Instagram, Audience Network, and Messenger. This change will take place starting October 31, 2023.
Currently, Meta administers payouts for eligible nonprofits through Meta Payments and Network for Good. Meta Payments and Network for Good distribute funds to nonprofits through a check or an electronic transfer for nonprofits who are registered.
Through its new partnership with PayPal Giving Fund (PPGF), Meta will distribute payouts electronically to enrolled nonprofits within 15 – 45 days and are issued on the 25th of every month (for U.S. nonprofits). Nonprofits enrolled in Meta’s fundraising tools (and currently receiving payouts through Meta Payments or Network for Good) must switch to PPGF and review and accept Meta’s updated Charitable Donation Terms by October 31, 2023.
Nonprofits that do not register for PPGF risk losing access to some of Facebook’s fundraising tools, and PPGF-unenrolled nonprofits will be distributed a check from PPGF within 90 days, as opposed to a payout within 15 – 45 days, subject to PPGF policies.
Nonprofits can learn more about enrolling with PPGF here.
What’s PPGF/Meta offering nonprofits?
- On Giving Tuesday in 2021, PayPal processed more than 2.1 million donations to over 160,000 nonprofits enrolled!
- Donors can now opt to cover the processing fee.
- The donor and charity both receive confirmations and a report on the donation and its use.
The Steps Involved for Meta Nonprofits
**Beginning September 15, 2023, Meta will no longer support recurring giving campaigns or new recurring donations. Existing payment processors will pay out recurring donations through October 31, 2023.
Facebook says they hope to bring the recurring donation feature back in the future.
After enrollment, PPGF will process nonprofit donations — however, all recurring donations, all donations prior to September 15, and all donations from donate buttons and fundraisers created before a nonprofit acted will continue to be processed and distributed by the nonprofit’s previous payment processor. Select the tables for each Meta platform to view more information on timelines and distribution.
On October 31, 2023, donation ads created before the nonprofit switched to PPGF will stop delivering. New donation ads should be set up after the nonprofit switches to avoid interference.
PPGF will provide donation activity reports with payment details for enrolled nonprofits, and Meta will remain providing a limited transaction report, however tax documentation will no longer be issued to nonprofits from Meta. Meta will also no longer be covering third party payment processing fees. The fee processing structure is 1.99% + $.49 fee per donation. Meta will now begin to offer donors the option to increase their donations to cover the processing fees.
Once funds are available, nonprofits will receive a notification to their support inbox. Then PPGF will transfer the funds within 45 days (ineligible accounts will receive a check within 90.)
Read more about the switch to PPGF and more specifics on how Meta is managing donations.
TrueSense Marketing is a Meta Agency Member and can help guide you through these changes to the Meta Tools for Nonprofits. We are here to help you navigate all your Facebook and Instagram fundraising efforts.
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