PayPal & Meta Giving Tools: A Nonprofit Guide
Meta now partners exclusively with PayPal Giving Fund (PPGF). This change happened on October 31, 2023. It supports non-profit donations in the US, UK, Canada, and Australia. Specifically, Meta stopped processing donations through its entities. These include Meta Payments Inc. or Facebook Payments International Ltd. Furthermore, this shift ends the use of other partners like Network for Good. Consequently, the change impacts all of Facebook’s Charitable Giving Tools. Affected tools include the Fundraiser API and donation options.
You can find more information on the partnership on the Facebook Help Centre. Read on to discover:
- What changes Meta is making.
- How this affects your non-profit.
- What actions to take and the key dates.
- How GivePanel supports you.
We will update this article as we get more information. Therefore, bookmark this page right now!
Last updated: November 1, 2023
🔎 Understanding PayPal Giving Fund
What is PPGF?
What is PayPal Giving Fund (PPGF)? Essentially, it is a registered charity. PPGF helps people worldwide support their favorite non-profits. Specifically, it processes donations from many technology platforms. These platforms include eBay, GoFundMe, and Twitch. PPGF serves thousands of non-profits globally.
Their goal is new philanthropy. They use technology’s power for everyday giving. In fact, in 2021 alone, they raised over $425 million (USD). They received $9.4$ million donor contributions. PPGF made grants to over $140,000+$ non-profits worldwide.
Your non-profit is likely already enrolled with PPGF. Thus, this offers a new route to engage donors. You can find full lists of enrolled non-profits for the UK, US, Canada, and Australia on the PayPal website.
💸 The New Donation Flow and Fees
How the Donation Process Changes
Starting November 1, 2023, Meta will no longer pay third-party processing fees. Instead, the revised donation flow lets donors cover these fees.
The donor interface looks familiar. It features a field for the donation amount. However, a new checkbox now appears below it. It says ‘Cover the donation processing fee.’ A brief explanation clarifies the fee adjustment. By default, this checkbox is unselected. The donor decides to cover the fee.
Processing Fee Structures
The payment processing fee structure is:
- United Kingdom (UK): $\text{1.4\%}$ of the donation value plus $\text{£0.20}$.
- United States (US): $\text{1.99\%}$ of the donation amount plus $\text{\$0.49}$.
Consequently, the displayed total adjusts based on the amount chosen. For example, a $\text{\$100}$ donation will incur a $\text{\$2.53}$ donation processing fee.
🔄 Changes to Meta’s Backend and Features
Meta’s ‘Year of Efficiency’ and Charitable Giving Tools
Meta initiated its ‘Year of Efficiency’ program. This includes many internal initiatives. The goal is business efficiency. They aim to build a better technology company long term. They now invest in video, AI, and the Metaverse.
This change will not affect daily social fundraising for most non-profits. Crucially, Meta Charitable Giving Tools remain available. Nevertheless, key backend payment changes are coming. They affect donations on Facebook and Instagram. You need to know these details.
Key Dates for US Non-profits
- August 30, 2023: Facebook Admins and Finance Contacts received the initial communication from Meta.
- From September 15, 2023 onwards: US charities cannot take new recurring donors. However, they will receive payments from existing donors until October 31, 2023. Find more details in the Facebook Help Center.
- From October 31, 2023 onwards: PayPal Giving Fund will process all payments for onboarded US charities. Note that non-profits can receive PPGF payments starting September 15 if they act early.
- From October 31, 2023 onwards: Meta will offboard any US non-profit that has not switched to PPGF by this date. They must also accept the updated Charitable Giving Terms.
Key Dates for UK Non-profits
- August 30, 2023: Facebook Admins and Finance Contacts received the initial communication from Meta.
- From August 31 to September 15, 2023: UK donors who haven’t used Facebook Payments cannot create a new fundraiser or donate. In this case, they will receive an error message if they try.
- From August 31 to October 31, 2023: UK charities using Facebook Pay can only receive donations from previous Facebook Payments users.
- By September 15, 2023: UK charities must switch to PayPal Giving Fund by this date. Ultimately, this lets them receive donations from any donor.
- From September 16, 2023 onwards: Switched UK charities can receive donations from any donor (previous and new). However, due to regulations, new donors can only donate to new fundraisers (created on or after September 16). They cannot donate to older fundraisers.
- From November 1, 2023 onwards: PayPal Giving Fund will process all payments for switched UK charities. Therefore, Meta will offboard any UK non-profit that has not accepted the terms and switched by this date.
Note on Australia and Canada: Since PayPal Giving Fund already serves as the payment partner, changes for non-profits and donors here will be minimal.
Note on Ireland: Irish charities are not affected by this switch. However, regulatory restrictions might prevent a new UK donor from donating to an Irish charity until November 1.
💻 Feature-Specific Changes in Giving Tools
Changes to Donations and Payouts
- Payment Processing Fees: Meta will no longer pay third-party fees. Instead, the flow changes to let the donor cover the fee (UK: $\text{1.4\%} + \text{£0.20}$; US: $\text{1.99\%} + \text{\$0.49}$).
- Donation Receipts: PayPal Giving Fund will send receipts to the donor, not Meta. Meanwhile, donors will still see records in their Facebook Activity Log.
- Payouts: PayPal Giving Fund will make payouts $\text{15-45}$ days after receiving donations. Conversely, non-profits not enrolled with PPGF will receive a check within $\text{90}$ days. (Read more in the Facebook Help Center.)
- Gift Aid (UK only): From November 1, 2023, Meta transaction reports will no longer include Gift Aid. PPGF UK claims Gift Aid on eligible donations. Then, it grants the full amount to the benefiting charities later. (Read more in the Facebook Help Center.)
Reporting and Data Changes
- Charity Reporting API & Transaction Reports: Meta will continue to maintain these reports. Nevertheless, the fields provided will change.
- Data Delays: Fortunately, the $\text{48+}$-hour data delay is ending. You should be able to pull transaction data from the previous day or even partial same-day data.
- Linked Instagram Fundraiser Data: Charities that completed the PPGF transition will see synced data from September 15, 2023. This includes fundraisers shared between Facebook and Instagram.
- Charity IDs: Non-profits receive new Charity IDs in the Facebook Transaction Reports after switching. Furthermore, GivePanel customers: we have updated our systems so you can upload your data without problems.
- Tax Receipts: As a result, Meta will no longer provide tax receipts as of October 31, 2023.
Fundraiser Changes
- Fundraiser End Dates: Fundraisers created before September 15, 2023, and before a non-profit switches to PPGF, will automatically end on October 31, 2023.
- New Fundraisers: First, switch to PayPal Giving Fund before September 15. Second, set up new Fundraisers after September 15. Only then can your Fundraisers run into November and beyond.
- Fundraiser API: Meta will continue to maintain this, and the API will still create Fundraisers.
🎯 What This Means For Your Non-profit
The biggest change is the end of $\text{100\%}$ fee-free Facebook donations. (Congratulations to all who maximized this opportunity!)
The good news is that donors will be asked to cover the small processing charge. Fees are $\text{1.4\%} + \text{£0.20}$ (UK) and $\text{1.99\%} + \text{\$0.49}$ (US).
Generally, we expect this fee change will minimally affect non-profit payouts. PayPal is a widely used, safe, and trusted online payment system. Therefore, we do not expect a drastic effect on conversion rates.
Meanwhile, GivePanel’s pioneering $\text{1-Click}$ fundraising solution is not impacted by these changes. You can rely on GivePanel to continue delivering market-leading ROI and return-on-ad-spend for your strategies and events.
✅ Actions to Take and Key Steps
1. Complete the Switch to PayPal Giving Fund
- Already Onboarded with PPGF? Great news! You are already ahead. You only need to review and accept updated Charitable Donation Terms. Do this before the deadline. Check the link Meta sent or your Charity Manager.
- Not Yet Registered (UK & US)? You need to complete the enrollment steps. Therefore, start the process soon to ensure ongoing access to Meta Giving Tools. This is essential for collecting donations.
- UK charities: Visit the PayPal Giving Fund UK website for guidance.
- US charities: Visit the PayPal Giving Fund US website.
2. Inform Your Internal Teams
We anticipate short-term data reporting issues during this transition. Thus, start now to prepare your Support and Data teams. They need knowledge of these changes and key timelines. Publish an FAQ article on your website for supporters. Keep this updated as changes roll out.
Also, Meta no longer covers processing fees. Therefore, you should alert your finance team to the new structure (UK: $\text{1.4\%} + \text{£0.20}$; US: $\text{1.99\%} + \text{\$0.49}$). They need to adjust budget projections accordingly.
3. Protect Your Facebook Challenge ROI
- September Challenges: Fundraiser end dates should be fine if they finish by October 31. However, prepare a crib sheet for your Group managers. They may receive questions about donations via Facebook versus PPGF.
- October Challenges:Keep in mind that Fundraisers created before September 15, 2023, and before you switch, will automatically end on October 31, 2023. They cannot accept donations after that.
- To run Fundraisers later, first switch to PPGF before September 15. Second, set up new Fundraisers after September 15. Then, these can run into November and beyond.
If you have questions about your Facebook Challenges, please contact your dedicated Customer Success Manager or su*****@*******el.com.
4. Connect with Your P2P Fundraising Platform
We recommend you reach out to your $\text{P2P}$ fundraising platform. This ensures they take any needed steps promptly. They must maintain or update your site’s Facebook integration. This action prevents disruption to your live and upcoming campaigns.
🤝 How GivePanel is Supporting You
Meta will communicate with your Facebook admins directly. Meanwhile, the GivePanel team will continue to liaise with Meta. We aim to minimize the impact on our customers. We will also monitor fundraiser benchmarks closely. This helps us see if the transition has any knock-on effects.
If you want support or have questions, reach out to your dedicated Customer Success Manager or su*****@*******el.com or visit givepanel.com/contact. Our teams will work closely with our customers. We ensure a smooth transition. Furthermore, we also prioritize GivePanel app developments to maintain excellent service.