St Luke’s Hospice Cheshire has set up a new charity that will raise money for other charities by collecting commission from selling financial products.
Care2Save is a registered charity which donates 80 per cent of the commission it receives when people purchase insurance to the charity chosen by the consumer. The other 20 per cent of its commission goes to the Care2Save Charitable Trust which will distribute profits to hospices and palliative care projects.
It is an introducer appointed representative (IAR) of Payplan Financial Services (PFS), meaning Care2Save refers consumers for financial products to PFS through its website, and then collects commission for the introduction.
For each transaction it receives 7.5 per cent of the cost of the policy as commission for the first year and 15 per cent for the second year onwards. Payplan receives 22.5 per cent in the first year and 15 per cent thereafter.
Care2Save has launched offering home, buildings and contents insurance but plans to expand.
The original concept came from Andrea Ladeira, who is director of business and support services at St Luke’s and the new chief executive of Care2Give. She said: "We are immensely proud of Care2Save which we are wholly confident will change the way people give to charity. Initially the site has been launched with insurance products, and this will be expanded over to time to other household utilities. The sky really is the limit.”
She added: “We hear so many stories about under-funded charities, and others concerning businesses behaving unethically. If we can create funding for charities to do more in our communities simply by choosing to buy through Care2Save then why wouldn’t we make that choice.”
Example: Home insurance policy of £276 | |
Year 1 |
|
30 per cent commission paid | £82.80 |
22.5 per cent of the commission is paid to Payplan Financial Services | £62.10 |
7.5 per cent is paid to paid to Care2Save | £20.70 (16.56 to the consumer’s chosen charity and £4.14 to the Care2Save Charitable Trust) |
|
|
30 per cent commission paid £82.80 | £82.80 |
15 per cent of the commission is paid to Payplan Financial Services | £41.40 |
15 per cent of the commission is paid to Care2Save | £41.40 (£33.12 to the consumer’s chosen charity and £8.28 to Care2Save Charitable Trust)
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