Still ignoring Facebook fundraising

Facebook is transforming peer-to-peer fundraising

2020 has been a PR nightmare for Facebook. Harder it tries, greater it falls. With every announcement, Mark Zuckerberg has invited a new series of problems. Facebook’s stand on hate speech is no more a hidden agenda. After employees boycotting the social network’s stand, now #StopHateforProfit campaign is asking for global organizations to stand and hit the networking giant where it will feel the pain.

Boycott advertising on Facebook.

The majority of outdoor brands have joined the movement by stopping advertisements on the network. The North Face, Patagonia, REI, Benjerry, and Goodby Silverstein, owned by the Omnicom Group have joined the campaign. Showing the world that empathy is beyond changing logos.

Will Nonprofits join the cause is little too far fetched. I might not stand with Facebook’s policies but there is no denying that it’s fundraising platform has been a hit among Nonprofit organizations. Over the last few months, NGOs like Akshaya Patra, SaveTheChildren, etc have used their celebrities to drive fundraising on Facebook.

In a previous article – Fundraising, NGOs, and Celebrities; I had highlighted how the trend has been developing with India going under extended lockdowns. Almost every Bollywood and cricket celebrity has been part of a Facebook fundraiser driven by different NGOs. Going forward NGOs will have to reevaluate the way it endorses celebrities for their causes or organization.

NGOs will have to split their celebrity endorsement budgets. While it hires a Bollywood/Cricket sensation, at the same time it should get a few internet celebrities onboard. Influencers who have become famous on the Internet because of their craft.

Facebook fundraising is playing a significant role in online fundraising especially in transforming peer-to-peer fundraising. It is already working for Indian NGOs because of the sheer size Facebook has in India. It is projected by the end of 2020 the social network will have more than 340 million users in the country.

According to the 2019 Blackbaud Peer-to-Peer Fundraising Study: The secret sauce of peer-to-peer fundraising is and has always been networks. Over the past decade or so, Facebook and other social tools have made it possible to significantly widen the network for organizations that engage in peer-to-peer fundraising.

According to the study, the percentage of participants who connect their personal page to a Facebook fundraiser is somewhat comparable to the percentage of participants who send an email, though more people are connecting to Facebook.

Of the participants who connect to Facebook, 75% of them did not send email through the Participant Center. For No Reg Fee participants in this sample segment, Facebook fundraisers raised $211 online— compare this to No Reg Fee email senders who raise $638 online. Email continues to fuel our most enthusiastic fundraisers, but only 32% of them are connecting to Facebook. 

The study considered 12 organizations producing nearly 900 events and more than 74,000 Facebook fundraisers.

Earlier this year, M+R released its well-known 2020 industry benchmark study – The study states that Facebook giving generated 3.5% of all online revenue for nonprofits in 2019. Overall, revenue raised on Facebook increased by 6% over the previous year.

The vast majority of all Facebook revenue (97%) was donated through the peer-to-peer Facebook Fundraiser tool.

The below snapshot shows the change in the amount raised on Facebook 2018 to 2019.

Facebook Fundraiser 2019

And here is how the state of Facebook fundraisers average gift performed in 2019:

Facebook Fundraising 2019

The Health sector, which stands out so much in the “Share of revenue from Facebook” chart, falls right back in line here. It is not that Facebook Fundraisers for Health nonprofits generate more gifts, or larger gifts, than those for other causes. Instead, it appears that more supporters start Facebook Fundraisers for Health nonprofits in the first place.

To make the most of this platform, nonprofits must find ways to be the focus of their supporters’ next birthday, holiday, or Giving Tuesday Fundraiser.

For Nonprofits Facebook has evolved into a fundraising platform specifically peer-to-peer fundraising.

In 2019, for nonprofits in our study who raised money on Facebook, 3% of online revenue came in through the social media platform.

This is no secret but the ongoing pandemic has boosted the Facebook fundraising platform. 32% of COVID-19 donors have donated through Facebook Fundraising Tools. Of those, 88% said they are likely to do it again. Interestingly there is a 39% who don’t want to do via Facebook like me. While the payment happens in a smooth two-step process but the money is deducted before I can rethink. As a donor, I am more comfortable doing via the Donation Page.

Additionally, 10.7% have donated through Instagram Fundraising Tools. Of those, 93% said they are likely to do it again.

Facebook Fundraising 2020

The above results are part of the 2020 Global Trends in Giving Survey which will be released on September 14, 2020. 7,008 survey respondents from 81 countries indicated in the survey that they had donated in response to the COVID-19 pandemic.

Still, thinking to integrate your nonprofit with Facebook Fundraising? The ultimate objective of a Nonprofit is to raise money for its causes. So Facebook shouldn’t be ignored because believe it or not it has the numbers and Indians love to spend time on the social network.

We spend more time on social media than online users in China or the US. We spend about 17 hours per week on social media websites like Facebook, Twitter, Instagram, and others. A world record, if you will.

Before you rush to start a Facebook Fundraising, just do quick planning:

  • Get your NGO on board, it has a lengthy process.
  • If you have a celebrity or influencer on board then list down activities that they can do along with starting a fundraising campaign. Can you provide something for the users to take back while they make a donation? From comedy to music to cooking to teaching a new art form creators are doing everything on Live shows while they are raising money.
  • If you have invested in your email community then can you pull out 5 most active donors, get them on a call and ask them if they would like to do a Facebook fundraising. You can involve your passionate employees in this cause too.
  • Finally, promote it in a planned manner. Not just the donation program but also the activities that you have lined up for the online fundraising. Don’t just be in a hurry to raise money.
  • And finally, Facebook wants to have a share of your wallet. So spend money on advertising to get reach. There is no organic reach on Facebook. Use the Facebook Ads grant which you might have never touched.

Okay, that’s all I can tell you for free. Jokes aside, don’t ignore Facebook Fundraising.

May peace be with you.

P.S. Did the article give value to your time? If yes then can you do a one-time donation to my ongoing fundraising campaign for COVID-19. Donation Link. If no, then I will keep trying. I don’t give up easily. Thank You!