Facebook Launches Personal Fundraising Tool9:24 AM
Beware, GoFundMe. You have come up with a new and significant competitor in the world of fundraising. Facebook introduces personal fundrais...
Beware, GoFundMe. You have come up with a new and significant competitor in the world of fundraising. Facebook introduces personal fundraising tools, donate buttons in Facebook Live for Pages.
Facebook announced Thursday that it will expand its donation tools to include one that raises funds for personal causes. The campaigns will allow people over the age of 18 to raise money for themselves, for a friend or for someone or something that is not on Facebook, as a pet.
The new tool will be launched in the United States in the coming weeks.
Facebook spokesman Stephen Rocco Rodi told that for each donation for this new fundraising tool will be charged a commission of 6.9%, plus 30 cents. "We do not want to make a profit out of this," Rodi said, adding that money from that commission would cover the security and fraud protection of the new tool, as well as evaluation and payment processing. In contrast, donations for non-profit causes pay 5%.
Facebook will launch its tool with six categories, including education (within which will be tuition or books), medicine, pet medicine, crisis, personal emergencies (such as car accident or theft) and burials and losses.
Before each campaign is published, there will be a review process to protect against fraud and to ensure that the cause is within the six categories. Eventually, Facebook will expand the types and automate the review process further.
People who do not have a Facebook account can see the fundraiser, but they will not be able to donate money without registering before. The payment process will take between 7 and 13 days, as Facebook told, and may take a few days to some banks to deposit payments into the account of the person.
The incursion of the social network in the collection of funds for personal causes is a direct competition for sites like GoFundMe and YouCaring, who did not respond immediately to comment on the matter.
Facebook tested its fundraising tool in 2015 with 37 charities, including Mercy Corps, the National Multiple Sclerosis Society and the World Wide Fund for Nature.