Parent company Meta has absorbed processing fees on billions of dollars of donations given through its platforms for a number of years now. On October 31, that will change. Nonprofits that have benefitted from the platform’s peer-to-peer fundraising via Facebook and Instagram will have to take on those fees going forward, whether by asking donors to include an additional 1.99 percent plus $0.49 with their gift to cover the fees. According to Meta reports, users have raised $7 billion in charitable donations since digital donations began on Facebook ten years ago. And for the last six years, Facebook did not charge transaction fees for charitable donations. At the end of summer, Meta notified all registered nonprofits that it would stop processing those donations through Meta Payments and would no longer offer recurring donations. Future donations made on Facebook and Instagram will go through the PayPal Giving Fund. Currently, most digital donation platforms ask donors to cover credit-card processing fees, even if they claim to offer that service for “free.”
Consider: How has your development team prepared to offset the potential drop in donors or online donations through the Meta platform due to credit card fees?
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