Date
12 December 2017
Mark Zuckerberg says Facebook is launching a software program that will allow users to sync their Facebook fundraisers with other fundraising pages. Photo: Reuters
Mark Zuckerberg says Facebook is launching a software program that will allow users to sync their Facebook fundraisers with other fundraising pages. Photo: Reuters

Facebook ends transaction fees on donations

Facebook Inc. has eliminated transaction fees on donations made to non-profit organizations on its platform, chief executive Mark Zuckerberg said on Wednesday, a change that could help the world’s largest social media network expand its presence in online fundraising, Reuters reports.

Facebook had been charging a 5 percent transaction fee on donations made to non-profits via its website or app. However, it will continue to impose fees on fund raisers established by individuals, including a payment processing fee of 6.9 percent, plus 30 cents per donation.

Other online fundraising sites charge transaction fees on donations of about 6-8 percent.

The social network is also setting up a US$50 million per year Facebook Donations Fund to match givings on its platform to some causes, such as natural disaster relief.

“When I started Facebook, I wasn’t thinking about it as a way to raise money to fight diseases, but a few years in, we noticed many people were using it to raise money for different causes,” Zuckerberg said at a Facebook event in New York.

In February, a petition signed by 42,000 people demanded that Facebook waive the fees it charges a charity for raising US$1.5 million on its website.

Zuckerberg on Wednesday also said that Facebook is launching a software program, called Fundraisers API, that will allow users to sync their Facebook fundraisers with other fundraising pages.

The charges by other online fundraising include Gofundme, at 7.9 percent, plus 30 cents per donation, in the United States; Kickstarter at 8 percent, plus 20 cents per donation; Indiegogo at 8 percent, plus 30 cents per donation.

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