Meta will no longer cover charities’ payment processing fees

Meta is to stop covering the cost of third party processing fees for donations to charities through its platforms Facebook and Instagram from November.

The social media giant has revealed the move within its announcement that from 1 November it will partner exclusively with PayPal giving Fund UK (PPGF) to support charity donations.

Meta has confirmed that while it “currently covers third-party payment processing fees for donations to charities and will continue to do so until 31 October.

“On 1 November, Meta will no longer cover such fees and donations will be subject to a payment processing fee charged by the third-party payment processor.”

For donations in the UK the payment processing fee is 30p a donation plus 1.4%, although donors will have the option to increase their donations to cover fees.

Charities enrolled with Facebook’s payment scheme have been told to accept its updated charitable donation terms by November and switch to PPGF to receive donation payments.

“Charities that take action by the deadline will be able to continue using most features without any disruptions,” said Meta.

“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.”

In addition, “PPGF, rather than Meta, will provide donors with the official donation receipt that can be used for tax purposes”.

The social media giant said it “will only provide a confirmation of donations”.

Philanthropy Matters director and former Charities Aid Foundation policy head Rhodri Davies said Meta’s decision “looks like another worrying example of the dangers of digital platform dependency for charities, in terms of exposure to future shifts in terms of service”.