Fundraising platform charges ‘need to be transparent’
Wonderful.org has welcomed initiatives from The Fundraising Regulator and Charity Commission to address the issues surrounding fees charged by fundraising platforms that have been raised in parliament and in the national press.
The two organisations met to discuss greater transparency with the public, particularly about fees. The Fundraising Regulator indicated that donors should be aware of all deductions that platforms may make from the donation itself, from Gift Aid, or through card processing fees should be made clear.
A ban on charging card processing fees came into law in January but there are platforms still passing this cost to donors. Public concern about these charges came to the fore following a number of tragedies in 2017 including the Manchester Arena bombing and the Grenfell fire. Because of the scale of public donations, millions were being taken in fees and charges by the most popular giving platforms.
A deadline of 7 March 2018 has been set for platforms to respond to the legal requirements in the Payment Services Regulation. The Fundraising Regulator and Charity Commission put concerns out to a consultation which will run until 14 March. After considering the responses, new guidelines will be issued for all the fundraisers.
Wonderful.org founder Kieron James comments; “We’re pleased a spotlight has been cast on the often unclear fees charged by fundraising websites and steps are being made to move towards an industry standard where one single cost is represented clearly from the outset. This will help fundraisers and charities make an informed decision on which fundraising platform to use for their campaigns.”