Sheryl Sandberg, Chief Operating Officer of Facebook, announced recently that Facebook users had … [+]
BLOOMBERG NEWSThe world’s largest social media network helped 97,000 nonprofits raise $120 million in a single day, according to a statement from Facebook COO Sheryl Sandberg.
“Wow! Over 1.1 million people on Facebook raised $120 million on #GivingTuesday for causes they care about,” Sandberg wrote in a Facebook post. “Donations went to 97,000 nonprofits supporting disaster relief, animal shelters, cancer research and so much more. A huge and heartfelt thanks to all of you for being a part of this incredible moment and for working to make our world better.”
The company shared that an additional $20 million had been raised on Facebook in the week leading up to Giving Tuesday, which falls on the first Tuesday after Thanksgiving — this year, Dec. 3.
But the $120 million figure represents a surprising year-over-year decline for the social media juggernaut. On Giving Tuesday 2016, Facebook users raised $6.8 million; that number jumped 561% — to $45 million — on Giving Tuesday 2017, as the company eliminated its 5% transaction fee, and featured a $2 million match from the Bill and Melinda Gates Foundation.
On Giving Tuesday 2018, Facebook users nearly tripled their contributions, to $125 million. The company incentivized donations with a $7 million match that was exhausted “in seconds.”
This year, Facebook made some cosmetic changes to its mobile apps, adding a ‘Donation’ sticker to its Facebook and Instagram Stories platforms and an optional ‘Donate’ button to nonprofit business profiles. (Data on the usage of these features has not been made available.)
But Facebook stuck with its $7 million, first-come, first-serve match. Nonprofits will learn in January what, if any, portion of its Giving Tuesday donations were matched by Facebook, and those matching funds won’t be available until February.
The match — which is capped at $100,000 per nonprofit and $20,000 per donor — has been a controversial topic among nonprofit leaders.
“Facebook also limits donor information and disburses funds slowly, which our nonprofit members have reported make it difficult to thank their contributors and report on Giving Tuesday fundraising success,” said Molly Trerotola, Director of Strategic Engagement at Give Lively.
The fundraising drop doesn’t mean there aren’t success stories. Facebook pointed to individual nonprofits like I Be Black Girl and Turtle Mountain Animal Rescue.
But experts concur that because of its organic nature, Giving Tuesday is unlikely to have a “hockey stick moment” of sudden awareness growth, like Cyber Monday. “Instead, it will grow steadily, sustainably, and over time like a redwood tree that will stand the test of time,” Whole Whale Founder and CEO George Weiner told The Nonprofit Times.
As of Dec. 30, 2019, Facebook’s estimated net worth exceeded $593 billion. Founder Mark Zuckerberg’s net worth is estimated at more than $65 billion. Facebook boasts more than 2.45 billion monthly active users, and according to the latest Global NGO Tech Report, 99% of nonprofits in the U.S. and Canada have a Facebook page.
According to Giving Tuesday, $511 million was raised online in the U.S. on Dec. 3; that represents more than 25% of the $1.97 billion estimated to be raised on- and off-line.