The Fundraising Regulator has said it is in contact with the main online fundraising platforms over recently tightened rules regarding zero tip options.
Guidance published in 2023 states that fundraising platforms with optional fees “should make it as easy as possible for donors to donate for free, for example by including a ‘zero fee or tip’ option, giving equal prominence to this option”.
The regulator recently told Civil Society that platforms will be required to follow the guidance and offer donors a straightforward way not to tip as its updated Code of Fundraising Practice comes into force this month.
JustGiving, which became the first online platform to sign up to the regulator’s code in 2019, currently applies an automatic 17% tip on all donations, which donors can reduce to 12.5% through a sliding scale or remove altogether manually. It has not changed this process since the start of November.
A spokesperson for the Fundraising Regulator told Civil Society: “The new code ensures donors are not tricked or misled into tipping, in line with the principle that fundraising must always be legal, open and honest.
“Where fees are optional, platforms should give equal prominence to options to pay no fee, and the process for doing so should be straightforward.
“We are currently in dialogue with the main online fundraising platforms – and with other regulators and representative bodies – about the new code requirements. We know they are assessing what they need to do to comply with the new code.”
They added that digital platforms provide “a legitimate, legal, and secure practice” and “play a vital role in the charity sector”.
JustGiving ‘pleased to work’ with regulator
Like other platforms, JustGiving previously charged platform fees from which donors were unable to opt out, before switching to its current tipping model in 2019.
A spokesperson for JustGiving told Civil Society: “Our platform exists to empower people to support the causes they care about through a seamless, digital experience.
“That’s why, following extensive consultation with the charity sector, we transitioned from a percentage-based fee model to a voluntary contribution system.
“This model is now standard across the industry and ensures more money goes directly to supporting good causes. It also gives donors the option to decide whether they would like to leave a contribution to support JustGiving, which is entirely voluntary.
“We are pleased to work in alignment with the Fundraising Regulator and as always, we remain committed to supporting the incredible efforts of fundraisers across the globe.”
