Donors using Virgin Money Giving will have the option to cover all fees on behalf of charities from September.
In the latest shake-up to online fundraising platforms, the company has announced plans to extend its current ‘Donor Covers Fee’ scheme, so that users can choose to cover the payment processing fees as well.
This will mean givers can choose to pay an extra 2.5 per cent of their donation to cover processing costs currently borne by the charities. This comes in addition to an optional 2 per cent contribution to the cost of running the online platform, a feature announced in November last year.
Virgin Money Giving says that on average 85 per cent of donors already opt to use the ‘Donor Covers Fee’.
In practice, someone using the platform to make a £100 donation before gift aid will have the choice to pay £104.50, to ensure that the full value of the donation goes to the chosen charity.
Other fundraising platforms already waive some fees, but Virgin Money Giving says this change will make them the only platform which invites donors to cover all fees on behalf of charities.
It will also allow company to extend donations to “alternative digital payment methods.”
Jo Barnett, executive director at Virgin Money Giving, said: “Virgin Money Giving remains committed to fair and transparent pricing. Whilst you can’t run a fundraising platform for free, you can run it without taking a profit so more goes to good causes. Over the past 18 months, we have re-engineered and enhanced the Virgin Money Giving donation experience to help charities maximise donations.
“As a not-for-profit business we don’t make a profit from peoples’ generosity.”
Barnett added: “We are extending this donation to also cover our card fees meaning charities will benefit from an increase in donations if donors choose to cover the costs on the charities behalf.”
Over £700m has been donated to the 15,000 charities registered with Virgin Money Giving since it was established in 2009, according to the company.