Intermediaries and Gift Aid fees

Despite recent speculation that the Government would introduce restrictions on fees on Gift Aid processed by intermediaries, there was no announcement to this effect. Feedback that we have received from the Treasury indicates that the Minister had listened to feedback from stakeholders that dialogue between the sector and intermediaries was best and had welcomed the steps that some intermediaries had taken to address the concerns that had been raised.

JustGiving have accepted an invitation to speak to members of CTG’s Gift Aid working group as part of their planned consultation with charities.

In addition, the Minister for Civil Society has responded to a written question on Gift Aid fees charged by intermediaries.

Gift Aid: Written question – 182794

Asked by Neil Coyle (Bermondsey and Old Southwark)

To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment he has made of the implications for his policies of the economic analysis published by Development Economics that over the course of a decade £30 million of taxpayers’ Gift Aid donations could be taken in fees by private sector fundraising platforms; and if he will take steps to ensure that Gift Aid donations reach the causes, charities and beneficiaries they are intended for.

Answered by: Tracey Crouch (Minister for Civil Society) on 29 October 2018

Digital fundraising platforms raise significant funds for charitable causes and therefore must ensure high standards of transparency to allow donors to make informed decisions.

The Fundraising Regulator has updated the Code of Fundraising Practice to include requirements for these platforms, including new transparency requirements about charges. This helps donors ensure that as much money as possible, including Gift Aid, goes to the intended charities and beneficiaries, which is important.

In addition, one of the largest digital fundraising platforms, Just Giving, has recently announced they will no longer charge fees on donations made to campaigns for major incidents, which will also ensure more money, including Gift Aid, is passed to charities.