Social media giant Meta has been urged to rethink its decision to stop covering payment processing fees for charities fundraising through its sites.
The cost of third party processing fees for charities fundraising through Instagram and Facebook is set to change from November.
Meta will now partner with PayPal Giving Fund (PPGF) and stop covering the cost of third party processing fees for charities fundraising through its platforms, with PayPal charging 30p per donation plus 1.4%.
Donors will have the option to increase their donation amount to cover third party processing fees, Meta said.
Charity sector consultant Zoe Amar told Civil Society she was disappointed by Meta’s decision and urged it to reconsider.
Charities may need to take action by 1 November
Charities enrolled with Facebook Payments must accept updated charitable donation terms by 1 November and switch to PPGF to receive donations.
Those that already receive payouts from PPGF will need to review and accept the organisation's charitable donation terms.
Meta states charities that take action by the deadline “will be able to continue using most features without any disruptions”.
This means charities will still be able to raise money through fundraisers or donation buttons on Facebook and Instagram, and people will still be able to create fundraisers and donate to support charities.
Additionally, charities will continue to have access to Charity Manager.
“While most functionalities and fundraising tools will remain the same for charities that switch, there will be some changes,” information from Meta adds.
A PayPal spokesperson said PPGF is expanding its partnership with Meta “to exclusively receive donations and grant donated funds to benefiting charities on Facebook and Instagram in the US, UK, Australia and Canada”.
‘I would urge Meta to reconsider this decision’
Amar said: “It’s disappointing that Meta has chosen to do this now, when so many charities are having a tough year due to the cost-of-living crisis.
“Meta’s decision is another reminder that charities need to review their dependency on social media platforms for fundraising, and plan how they can diversify their income generating opportunities, for example through growing their mailing lists.
“I would urge Meta to reconsider this decision so that they can show support for the sector during the difficult winter ahead.”
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