The Fundraising Regulator has said that it will be tightening the rules for online platforms such as JustGiving offering zero tip options to donors from the start of next month.
Guidance published in 2023 already 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”.
At present, failure to follow the guidance does not constitute a breach of the regulator’s Code of Fundraising Practice.
However, the regulator has said that when its new code becomes effective on 1 November, platforms will be required to follow the guidance and offer donors a straightforward way not to tip.
The regulator said it is in ongoing discussions with the major online platforms to ensure they are able to comply with the new requirements.
“To remain compliant from 1 November, online fundraising platforms will need to ensure that the option to set voluntary tips to zero is given equal prominence to other options, and to ensure that the process for doing so is straightforward,” a spokesperson for the regulator said.
Concerns over £25.8m dividend
Recently, JustGiving published its accounts for 2024, which show a £25.8m dividend payment to its US owners Blackbaud last year, a similar amount to previous years.
The 2024 accounts for Giving.com, the legal name for JustGiving, were covered by the Times and led to some charities and donors criticising the way the platform asks for tips.
JustGiving currently applies an automatic 17% tip on all donations, which donors can remove manually.
Meanwhile, charities are asked to pay a monthly subscription fee to JustGiving but can sign up for free for a reduced level of service.
JustGiving also charges payment processing fees to charities and takes 5% of reclaimed gift aid when the platform processes a donation eligible for the tax relief.
MPs raised concerns in parliament earlier this year about the amount of commission on gift aid taken by online fundraising platforms such as JustGiving, which said in response: “Claiming gift aid can be complex, costly, and time-consuming, which is why three-quarters of charities choose to rely on us to handle the process.”
Civil Society has contacted JustGiving for comment.
