MPs and peers are urging the Chancellor to either ban or force online fundraising platforms, such as JustGiving, to be more transparent about their commission when handling donations given via Gift Aid, demanding an “end to these opaque practices”.
Designed to boost charitable giving when it was introduced in 1990, Gift Aid is a government scheme that allows charities to reclaim the basic rate of tax on donations, meaning they can claim an extra 25p on every £1 given.
Campaigners are now calling for the Treasury to step in and ban commission on Gift Aid, which allows charities to claim an additional 25p for every £1 donated at no extra cost to the donor.
“I have raised hundreds of thousands of pounds using JustGiving and have been very dismayed to see donors have their support abused in this way.”
Thousands donate to charities for people running the London marathon (Photo: PA)
The issue has been raised by opposition MPs, such as the shadow culture minister Saqib Bhatti, who has called for the Government to take steps to ban the practice of charging commission on Gift Aid.
This included a fundraiser, called “Swifties for Southport”, organised by fans of Taylor Swift in the wake of the horrific Southport attack on a dance studio that killed three children, which raised nearly £400,000 and was JustGiving’s third largest fundraiser last year.
JustGiving has been approached for comment.
“It will ultimately be a commercial decision on the part of a charity to work with a fundraising platform and whether it is appropriate to pay a fee for any services provided,” Murray said.
“Many of the fundraising platforms are voluntarily registered with the Fundraising Regulator which can act if it believes standards have been breached.”
Read More Details
Finally We wish PressBee provided you with enough information of ( The hidden tax that means your online donations are not always going to charity )
Also on site :