Facebook Launches Fundraising Tools and Donate Buttons

Facebook has rolled out a new set of tools to help people who are trying to raise money for themselves or a cause. The new features will make Facebook a GoFundMe competitor and considering that many people who set up the GoFundMe accounts end up posting them on Facebook, the new fundraising features could very well put a serious crimp in GoFundMe’s user base.

The new tools for fundraising or personal issues will roll out in the US first. Facebook says that it will also give users the ability to add a donate button to live broadcasts as a way to get paid for their time. Facebook already has a similar, but rather unknown feature, that allows nonprofits to setup pages similar to what you see on Kickstarter where people can explain goals and then raise cash.

Facebook also has the ability for friends and family to directly send money between each other using their credit cards. That service is done via Facebook Messenger and is dead simple to use, charges no fees, and takes the money from the giver, and transfers it to the receiver instantly, directly into their bank account.

At least for the beginning the personal fundraising categories that Facebook will allow include education, medical, pet medical, crisis relief, personal emergencies, and funeral expenses. Facebook has built-in a 24-hour review process so that it can ensure fundraisers will meet the policies. Fundraisers are open to the US and you have to be 18 or over. Facebook does charge a fee when the money raised is taken out to the tune of 6.9% and a 30 cent payment processing fee. That is less money than GoFundMe takes.

These new fundraising pages will allow people to click to invite friends, share the campaign, and a large button will be offered for donating. Facebook Pages will also gain donate buttons reports TechCrunch.