JustGiving has scrapped its 5 per cent fee for charities in the UK, in the company’s biggest model shake-up since inception.
The online giving platform will be completely free for UK charities and will instead rely on voluntary contributions from donors to support the operation of the platform - a move designed to increase choice for donors and income for charities.
JustGiving's decision follows the removal of platform fees for all crowdfunding, disasters and major incidents, which JustGiving announced in October last year.
“Today, JustGiving is taking an exciting step into the future by removing our platform fee. This change means lower costs for charities, transparency and choice for their supporters, and a sustainable future for the UK’s biggest and best platform for giving," JustGiving general manager, Keith Williams said.
“We believe that people who donate through JustGiving money will be going to their chosen charity, and by making a voluntary contribution to the UK's most-trusted giving platform we can continue to help charities and individuals raise even more money for good causes. That’s why we’re putting more power in the hands of our donors.”
In October 2018, JustGiving also announced a consultation regarding its Gift Aid reclaim service, which aims to allow charities to save money and time when reclaiming Gift Aid through the platform.
Following the consultation, JustGiving has announced it is changing its terms of service to allow charities to opt out of the Gift Aid reclaim service if they wish.
“JustGiving helps many charities, particularly smaller organisations, to focus their efforts on fundraising rather than on paperwork,” Charity Tax Group finance regulatory and taxes manager, Richard Bray said.
“The Charity Tax Group welcomes this contribution to the charity sector and looks forward to continuing to work with JustGiving to help future-proof Gift Aid as we move into an increasingly digital age.”