Facebooks new personal fundraiser charges

Facebook has introduced new fees for personal fundraisers on its platform. Here are the details:

New Fees:

1. Platform Fee: Facebook will charge a 5% platform fee on all donations made to personal fundraisers.
2. Payment Processing Fee: In addition to the platform fee, payment processing fees will apply, which vary depending on the payment method used. For example:
   • Credit/Debit Card: 2.9% + $0.30 per transaction
   • PayPal: 2.9% + $0.30 per transaction
   • Bank Transfer: 1% + $0.30 per transaction

Example:

Let's say you create a personal fundraiser on Facebook and someone donates $100. Here's how the fees would break down:

• Platform Fee: 5% of $100 = $5
• Payment Processing Fee (assuming credit/debit card): 2.9% of $100 + $0.30 = $2.90 + $0.30 = $3.20
• Total Fees: $5 (platform fee) + $3.20 (payment processing fee) = $8.20
• Net Donation: $100 (donation) - $8.20 (fees) = $91.80

What this means for fundraisers:

• The new fees will reduce the amount of money that goes directly to the fundraiser, which may impact the overall success of the campaign.
• Fundraisers may need to adjust their goals or strategies to account for the reduced funds.
• Facebook is encouraging fundraisers to consider using alternative payment methods, such as bank transfers, which have lower payment processing fees.

What this means for donors:

• Donors will still be able to contribute to personal fundraisers on Facebook, but the fees will be deducted from the donation amount.
• Donors may want to consider using alternative payment methods, such as bank transfers, to minimize the fees.

It's worth noting that Facebook is waiving the platform fee for fundraisers related to COVID-19 relief efforts until December 31, 2022.