If you are planning to run for charity in 2016 chances are you'll either use Virgin money giving or Just Giving to help you collect fundraising money.
Virgin Money Giving opened in 2009 as a main competitor for the popular Just Giving site, as a secure online way for fundraisers to collect sponsorship. Sites like these have made donating to friends and colleagues, collecting the money and then passing it on to the charity much easier. The sites also allow gift aid to be added, giving the charities a much needed boost and allowing us the satisfaction of taking some money back from the taxman.
Just Giving - Just Giving is currently the market leader, and almost £700,000,000 has been raised for charity on the site to date. That's a truly impressive total! £100million has been claimed back in gift aid. There's no doubt that these sites offer an excellent resource for fundraisers, donors, and charities making donations easier to give, collect and pass on to the charity. But how do these sites make their money, and how much do they make?
When you sponsor someone online it's easy to assume your entire donation will go straight to the charity, but you'd be wrong. Just Giving allows charities to set themselves up for free, but they pay £15+VAT per month membership fee, and then take a 5% fee from all donations before passing the rest directly on to the charity. They'll also take a fee on gift aid donations. That may sound small but when you think of the amount of money passing through the site, that's a serious amount of profit! For more information on Just Giving please go to their website - www.justgiving.com
Virgin Money Giving - Virgin Money Giving say 'We're a not-for-profit company launched by Virgin Money. This means we don't take a penny in profit from your donations. Our aim is to help charities and fundraisers raise as much as they can'. They may not be making a profit, but they do charge charities Â£100+VAT to set themselves up, and then 2% of all donations. However they don't take a fee for gift aid donations, or have any ongoing monthly membership fees. They state that these payments are to meet the essential running costs of the site and 100% not for profit. For information information on Virgin Giving please go to their website - www.virginmoneygiving.comwww.virginmoneygiving.com
Conclusion - It seems that Virgin Money Giving are delivering an equal service with a better deal for charities, setting itself as a major competitor to Just Giving. This year, Virgin Money Giving clocked up donations for the London Marathon to the value of £13.88 million up two thirds on the previous year. The average donation was £31.34. They had processed over £10million in their first year. It will be very interesting to see how the Just Giving figures compare when they are released, and whether Just Giving decide to offer charities a more competitive deal in the future.