Instagram Unveils New Donation Tool for Stories

Instagram

Instagram users will now be able to help their favorite nonprofits raise money using a “donation sticker” embedded in the platform’s stories feature. The announcement comes ahead of a keynote address by the head of Instagram, Adam Mosseri.

All of the money raised on the platform will go to the nonprofit a user chooses to support, an Instagram spokesman said, adding that Instagram’s owner, Facebook, will cover the credit-card processing fees and costs of operating the feature.

Kimberly Bryant, chief executive of Black Girls Code, said in a statement that Instagram’s platform helps them reach a larger community through photographs, video, and live posts. Clay Dunn, chief communications officer of No Kid Hungry, similarly said the fundraising tool will make it easier for users to donate.

In February, Facebook said a new donation tool was coming and would integrate with the stories section’s posts, which expire after 24 hours. Facebook has made several other efforts to help nonprofits attract donations. It launched a donate button in 2015 and later added tools so people could raise money for various causes on their birthdays or other special occasions.

The new stories tool is expected to simplify the process. Previously, Instagram users would add links in the bio section of their profiles or in stories to seek donations, which sometimes had long, clunky URLs. Now, just as users can choose to add their location or a hashtag to a story, they will soon be able to embed a “clickier” donation button.

To receive donations, nonprofits will need to be preapproved by Facebook. In the United States that means Facebook will check with the Internal Revenue Service to be sure the charity has 501(c)(3) tax-exempt status “in good standing.”

Individuals and charities will be able to use Instagram’s donation sticker to gather contributions for a cause. Participating nonprofits can pre-set donation amounts beginning at $5.