JustGiving Faces Scrutiny Over Donor 'Tips'

JustGiving, the UK's largest online charity fundraising platform, is currently facing scrutiny from the Fundraising Regulator over its tipping practices. The platform, which facilitated over £580 million in donations last year, is accused of subtly encouraging users to leave extra 'tips' for the company. Critics argue that the website's design makes it challenging for donors to opt out of these additional payments, leading them to believe the money goes directly to charities.

While JustGiving claims not to charge charities a platform fee, external payment processing fees and a portion of reclaimed Gift Aid are still deducted. Company accounts indicate that approximately 10 pence of every pound donated may ultimately go to JustGiving rather than the intended charity. This comes as JustGiving reported substantial profits of around £35 million on an income of roughly £65 million last year, with profits flowing to its American parent company, Blackbaud.

The Fundraising Regulator updated its code of practice in November, emphasizing that optional charges or tips must be presented with equal prominence to the option of paying nothing, and the process should be clear. The regulator has stated that JustGiving's current interface is not fully compliant, and discussions are ongoing. Consumer groups have also voiced concerns, warning about manipulative online design techniques that can steer users into unintended spending.