Hi There, our mentors and friends have reported that when they “like” or “follow” our team on Facebook (which I do not personally use), FB invites them to run a fundraiser for the team, which many of our supporters have done. Apparently FB holds the funds raised for 60-75 days and then cuts a check through “Network for Good” to send to the address the organization has registered with the state under which it’s organized. Is anyone else familiar with this activity? How much do FB and NfC retain for their “cut?” And, how can FB authorize private individuals to represent us in public messaging and fundraising without our consent or participation? Numerous unanswered questions of propriety and legality swirl around this situation. Please share any answers you have. Thanks.
Only a lawyer can give you advice about any legal actions you might take to stop this, but I am inclined to believe it is probably legal since this model has been used by a number of companies to facilitate nonprofit donations as well. When donors actually make the donations, they are shown legal notices telling them that they are actually making a donation to Network for Good, Inc. (a donor advised fund) with a request that, so long as your team remains a registered charity, NFG-DAF will proceed to forward that donation on to you. I completely agree with you that it may often be in your best interests to discourage this and instead set up a payment processing method of your choice for donations. Neither Facebook nor NFG-DAF appears to take any cut, and their payout procedures and legal notices to donors are posted online. I looked through our page settings but couldn’t find any way to turn them off, although I try to use Facebook as little as possible so someone else may know better.
Congratulations on your Dean’s List Award!
Thank you aidanh010. Yes, it is apparently legal, and our Treasurer is looking into how to recover the funds. By the way, we also found out that people have been donated via AmazonSmile for the whole time we’ve existed (20 mos), and we’ll never see a penny of that. Until we register with AmazonSmile Foundation and accept their agreement, all donations made with us in mind are reallocated to other registered charities.
ALL TEAMS BEWARE - if you have a 501©3 nonprofit, it is listed on Guidestar, and FB and Amazon will use that information to encourage individuals to donate and raise money on your behalf, but you will never see a penny unless you register with these entities. How many other global behemoths besides Facebook and Amazon are out there soliciting donations in the names of our teams and not passing them to us? It’s an abuse of power that takes advantage of the goodwill of individuals. Beware!
Gofundme still the best of all?