Facebook Expands Fundraising Services For Users

Facebook has extended its reach into platforms ranging from games to video, but the social media network’s latest move heads straight to users’ wallets. In a post Wednesday, Facebook announced it will expand its fundraising tools, allowing users to fundraise for community and sports-related needs.

Facebook users who want to launch a fundraiser can go to facebook.com/fundraisers now to set up a funding campaign. The move is also an expansion of Facebook’s earlier test of fundraisers, which began in March. Fundraisers will be available the following categories:

• Educational needs like book costs and tuition

• Medical costs like procedures or treatments

• Pet medical needs

• Crisis relief for events like natural disasters

• Personal emergency

• Funeral and loss

• Sports costs like equipment or team competition expenses

• Community expenses, for neighborhood or local improvements

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Facebook said fundraisers are reviewed within 24 hours and the social media company will take only a 6.9 percent cut of proceeds, along with an additional 30-cent fee for payment processing. Facebook said the fees will only go toward administrative costs for the fundraiser program. Notably, the fundraiser program takes a targeted approach toward its fee structure. Funding site GoFundMe charges a 7.9 percent fee for fundraisers and takes a 30-cent cut per donation.

In its statement, Facebook said it was encouraged to expand the fundraiser program by users.

“We’re constantly inspired by the good people on Facebook do, and we’re excited to learn more about how people use this new product so we can continue improving the experience,” Facebook said.

The update is also one of several from Facebook intended to give users more reason to stick around the network. As TechCrunch previously reported, Facebook also has started rolling out the ability to order food through its desktop or mobile apps to a limited number of users. The move is an expansion of Facebook’s previously announced partnership with Delivery.com and Slice.

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As for Facebook, the move also reflects, for better or worse, the increasing popularity of fundraisers. The virality of fundraisers and trying to do good plays a big role in many successful fundraiser campaigns. Last year, GoFundMe chief operating officer Rob Solomon said the service had raised $3 billion in donations for causes ranging from helping an elderly man to retire to helping a single mom and her son.