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Chronicles

The story behind the story

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New Facebook feature will allow US users to create fundraisers for nonprofits, available to some users Thursday, rolling out to all in coming weeks

MENLO PARK — Looking to strike an emotional chord with potential donors, some nonprofits are turning to Facebook users to help them raise money for worthy causes.

Mercury News Queenie Wong

Context & Ripple Effects

This move completes the loop Facebook started in November 2015, when it launched [[a:836321|Fundraisers and Donate buttons as tools nonprofits could attach to their own Pages and posts]]. What changes here is who initiates: any US user, not just an organization, can stand up a fundraiser and recruit their own network. That turns every donor into a potential campaign organizer, which is exactly the emotional-lever the Mercury News piece describes nonprofits reaching for.

The rollout matters because it is the foundation for everything that follows in the corpus: within a year Facebook narrows the same mechanics into personal fundraising limited to six categories like medical and education, then wraps them into birthday fundraisers — a sequence that ends with over $300M raised through birthdays alone.

First-order effects

  • US nonprofits immediately gain a peer-to-peer channel where supporters — not just the organization's Page — run the ask, extending reach beyond each charity's own follower base during the phased rollout.

Second-order effects

  • Once user-created fundraisers prove out, Facebook productizes the behavior twice over: personal-cause fundraisers in six categories compete with dedicated crowdfunding platforms, and birthday fundraisers make giving a recurring calendar event that later draws $300M-plus.

Third-order effects

  • By 2018 Facebook drops its 4.3% US platform fee on personal fundraisers entirely, signaling that it treats charitable giving as engagement infrastructure rather than revenue — a pricing posture dedicated fundraising platforms built their businesses on cannot easily match.

The trend: Facebook is converting its social graph into a payments-and-giving layer, moving from Page-level donation buttons toward user-initiated campaigns that make the platform itself the venue for philanthropy.