Earlier this week, Facebook announced a new donation feature that will give nonprofits the ability to collect donations right on their Facebook Page.

How does it work?

Nonprofits can permanently add the button to their Facebook Pages at the top of their timelines. They can also use the button within Facebook posts.

When a Facebook user clicks the “Donate Now” button, they will be given the option to donate preset amounts of $10, $25, $100, or $250 using a credit card, debit card, or PayPal account. Users can also suggest a different amount to give.

After making the donation, Facebook will prompt users to post about it on their own timeline as well.

Why should I care?

Facebook is a powerful tool for nonprofits hoping to expand their network and generate support for the work that they’re doing.

It has also grown into an effective fundraising tool as well:

  • 55 percent of people who have engaged with nonprofits through social media have been inspired to take further action, including monetary donations (Waggener)
  • The average donation made through social channels is $59 (MDG Advertising)
  • 68 percent of people will go online and learn more about the charities and causes that their friends support when their friends post about it on social media (MDG Advertising)

With the addition of the “Donate Now” button, Facebook is introducing a whole new way for organizations to raise funds and awareness for their cause.

While this button is not a replacement for all of the great work you’re already doing to raise funds, it will be a valuable addition that all nonprofits should be excited about.

Anything else I should know?

One of the things that caught our attention is that nonprofits will not have access to donor contact information when someone makes a donation on their Facebook Page. This could make it difficult for nonprofits to nurture donor relationships after the initial contribution.

This is why its so important for nonprofits to take steps to move Facebook fans from their page to their email list. By maintaining an active email list, where donors can sign up to receive updates about upcoming events, fundraisers, and volunteer opportunities, you’ll have more opportunities to nurture relationships and generate future donations.

Here at Constant Contact, we’ve partnered with great companies like Network for Good that make it easy for nonprofits to create online donation pages and enable social sharing and mobile giving. With the integration, nonprofits can also collect donor contact information so that they can grow their contact list and stay in touch with supporters over time. Find Network for Good in the Constant Contact MarketPlace.

How can I add the “Donate Now” button to my Facebook Page?

Facebook has partnered with 19 different national nonprofits during the initial rollout of the “Donate Now” button.

Nonprofits can request to have the button added to their page by filling out an interest form here.

Have more questions about the new Facebook “Donate Now” Button? Let us know in the comments below.