JustGiving has announced that it is to drop its 5% platform fee for donations to UK charities and will instead ask donors for a voluntary contribution to support its running costs. This change has immediate effect from 26 March 2019. JustGiving will continue to charge a payment processing fee of 1.9% plus 20p. JustGiving indicate that the change means that from an average £30 average donation, around £1 extra will go to the charity.

In addition, JustGiving has changed its terms of service so that charities can choose to opt in or out of the Gift Aid reclaim service, though it believes that the majority of charities will continue to opt in to Gift Aid.

In a letter notify CTG Chairman John Hemming of the changes, JustGiving thanked CTG for its support and assistance in develop the package announced today and ensuring it reflects the needs and priorities of the sector. Part of JustGiving’s consultation process included meetings with CTG and attendance at a Gift Aid working group meeting.

CTG Vice-Chairman Richard Bray has commented:

“Outsourcing Gift Aid claims to intermediaries such as JustGiving helps many charities, particularly smaller organisations, to focus their efforts on fundraising rather than on paperwork.

“The Charity Tax Group has welcomed the way JustGiving has listened to charities during its consultation and supports JustGiving’s commitment to provide charities with choice and transparency which is demonstrated by them giving charities the chance to opt out of having Gift Aid claimed on their behalf.

“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.”