Britain's largest online charity fundraising platform, JustGiving, is under increasing pressure and regulatory examination over claims its website design steers donors into paying additional, optional tips to the company.
How the Donation Process Works
The platform, which processed a staggering more than £580 million in donations last year, is widely used for sponsored events, memorial pages, and charity appeals. After a donor selects their donation amount, they are directed to a summary screen. On this screen, an additional contribution for JustGiving—typically pre-set at around 17 per cent of the donation—is automatically added.
While users can reduce this amount, the lowest visible option is often above 10 per cent. To leave no tip at all, a donor must click through to a separate option and manually enter £0. Campaigners argue this process subtly nudges people into tipping, sometimes without their full realisation, especially if they believe the platform is free to use or that the extra money goes directly to the charity.
Fees, Profits, and Regulatory Action
JustGiving states it does not charge charities a platform fee. However, charities are charged card processing fees of about 1.9 per cent plus a fixed amount per donation. The company also takes a portion of the Gift Aid reclaimed from the Government. When all fees and tips are accounted for, company accounts suggest around 10 pence from every pound donated ends up with JustGiving, not the intended cause.
This scrutiny comes as the company posts significant profits. Last year, it made approximately £35 million on an income of £65 million, a profit margin exceeding 50 per cent. These profits flow to its American parent company, Blackbaud, which purchased JustGiving in 2017 for £95 million.
The Fundraising Regulator updated its code of practice in November last year, tightening rules around online fundraising fees. New guidance states that where charges or tips are optional, platforms must give equal prominence to the option of paying nothing, and the process for doing so should be simple and clear.
A regulator spokesperson confirmed that JustGiving's current interface is not considered fully compliant with this updated code and discussions are ongoing. Sources indicated that failure to make changes could lead to a formal investigation and the issue being escalated to ministers.
Consumer Concerns and Charity Silence
Consumer group Which? has raised alarms, warning that many websites use design techniques to push users towards spending more. Lisa Webb, a consumer law expert at Which?, said: "People are increasingly confronted with manipulative prompts online... JustGiving's approach to tips isn't as clear as it should be and appears to guide donors towards leaving a sizeable tip for the platform."
JustGiving is used by major UK charities like Cancer Research UK and the British Heart Foundation, whose logos feature on the site. Both organisations declined to comment on whether they believe donors are being misled by the tipping system.
In a statement, a JustGiving spokesperson said tipping is "entirely voluntary and transparent" and that the company is in an "ongoing dialogue" with the regulator, assessing what changes may be needed. The outcome of these talks could have major implications for the future of online charity fundraising across the UK, affecting millions of donors.
