When it comes raising money, many Americans turn to their friends and families to help gather donations. Now, the world’s biggest social network plans to get in on the action.
Facebook (FB) said this week it will let its more than 1 billion members host personal fundraisers, which will allow them to ask for money for themselves, their friends or someone who isn’t on the digital network. (In Facebook’s example, the latter category could be a pet.) The company would review potential fundraisers for a maximum of 24 hours before allowing them to go live.
Skeptics won’t be surprised to learn that Facebook isn’t adding personal fundraising out of the goodness of its own heart. The company said it will charge a 30 cent fee and 6.9 percent of the funds that are raised. The social network said the money would cover payment processing, security and fraud protection, and vetting the fundraising applications.
The company’s goal is “not to make a profit from our charitable giving tools,” wrote Naomi Gleit, senior vice president of social good in a blog post.
If the service sounds familiar, that’s because it strongly resembles social fundraising service GoFundMe. That site has helped people raise more than $3 billion to help with everything from medical expenses to training funds for Olympian hopefuls.
Like Facebook, GoFundMe’s services aren’t free. The site charges about 7.9 percent of a campaign’s funds.
A spokesperson for GoFundMe told 2 Wants To Know that the company wants you to be able to share your campaign with friends and family immediately. It also said, the platform is backed by the GoFundMe Guarantee, which means funds are guaranteed to go to the right place, or you get their money back.
GoFundMe also provides around the clock customer service for campaign organizers and donors, protection against misuse and distribution tools.