Criticisms
JustGiving charges a 5% fee on donations to cover the cost of running the business. As a for-profit organisation this fee may be used in any way the company deems necessary. The fee does not include card processing fees, which are deducted additionally. 85% of donations through the site are eligible for Gift Aid tax relief and the fees are deducted only once the claim has been settled by HMRC. In addition, each charity is charged a £15 monthly membership fee, regardless of whether any donations are made.
In 2008 The Guardian reported Kharas as acknowledging that "the commission charged by justgiving.com is controversial". In justifying their 5% fee, JustGiving states that profits are reinvested in new tools.
No fees of any sort are deducted from donations or Gift Aid received through the JustTextGiving service.
Charityfacts states that fundraising typically costs UK charities between 15% to 25%, however, because JustGiving are an e-commerce company their overhead costs are likely to be lower than a traditional bricks and mortar charity.
The administrative function includes the automatic reclaiming of Gift Aid on all donations from UK taxpayers.
Read more about this topic: Justgiving
Famous quotes containing the word criticisms:
“The sway of alcohol over mankind is unquestionably due to its power to stimulate the mystical faculties of human nature, usually crushed to earth by the cold facts and dry criticisms of the sober hour. Sobriety diminishes, discriminates, and says no; drunkenness expands, unites, and says yes.”
—William James (1842–1910)
“I have no concern with any economic criticisms of the communist system; I cannot enquire into whether the abolition of private property is expedient or advantageous. But I am able to recognize that the psychological premises on which the system is based are an untenable illusion. In abolishing private property we deprive the human love of aggression of one of its instruments ... but we have in no way altered the differences in power and influence which are misused by aggressiveness.”
—Sigmund Freud (1856–1939)