CASH IN FOR CHARITY
CHARITY donation website Just Giving faced a storm of criticism last week when it was revealed that it stands to take at least £190,000 from the £3.8million that inspirational teenage cancer victim Stephen Sutton has raised.
Just Giving has helped more than 22 million users raise £1.5billion since being launched in 2001. But as well as being popular, it is also one of the most expensive choices for fundraisers.
Just Giving says it takes 5 per cent of your donation, but it works out more as, unlike other providers, the percentage is calculated after including a Gift Aid tax rebate.
Under Gift Aid a donation of £10 is topped up to £12.50 because the taxman refunds income tax paid on the donation and hands it over to the charity. The 5 per cent fee ends up raking in 63p for Just Giving – in reality a 6.25 per cent cut of the £10.
Just Giving donors who pay by credit card are hit with an extra 1.3 per cent charge – adding a further 13p to the £10. There is a flat fee of 16p for using a MasterCard debit card and 17p for a Visa debit card. There is a 1.45 per cent fee for using PayPal.
Virgin Money Giving takes 2 per cent commission on donations – but before Gift Aid. It charges 1.45 per cent for payments made by credit or debit card or 1.6 per cent for using PayPal.
Some websites take no commission. These include BT’s My Donate. It charges 1.3 per cent of a donation made by credit card or 15p for debit cards. It does not offer PayPal payments.
Bmycharity, open to all UK-registered charities but run by the charity Help for Heroes, charges no commission but there is a 1.6 per cent handling fee for credit or debit card payments. It cannot accept payments via PayPal.
Pritie Billimoria of consumer website Money Saving Expert says: ‘Some websites pass on more of the donation than others – and it is the amount that is the most important factor for any charity.
‘But ease of use and website functionality must also be considered – bells and whistles that cost money. Check out websites before deciding.’
Some websites also charge the charities for using their online facilities. Just Giving’s fee is £18 a month while Virgin Money Giving wants a one-off £120. A Just Giving spokeswoman says: ‘With the ever-increasing pace of change, charities need technology innovation more than ever before and we have invested £20million.’
A Virgin Money Giving spokesman says: ‘It is a not-for-profit website. The one-off fee gives charities full access to all online functionality with training and marketing support.’