Online platforms are profiteering from Gift Aid
Online donation platforms could be banned from using GiftAid.
UK treasury minister Robert Jenrick says he wants the top four donation sites to change the way they raise cash or new laws will force them to.
Sites such as Justgiving raise money by taking a cut of the amount raised by fundraisers – usually 5%.
However some are taking fees for credit cards as well as taking commission from Gift Aid, the scheme where charities and fundraisers can claim back an extra 25p tax back for every £1 raised.
Government ministers are said to be dismayed at the profiteering online platforms are making at the expense of good causes.
According to The Sun, Jenrick, the exchequer secretary to the Treasury, has commissioned HMRC to draw up plans to bar sites from charging any commission on Gift Aid.
He said: “Some of the largest fundraising platforms have been keeping all or part of the Gift Aid amount on their fee.
“This is not the intention of Gift Aid, which is to provide more money for good causes and to support charities.
“I want this practice to stop and if it doesn’t, we will take action at the next opportunity. I have instructed HMRC to prepare steps to bring this to an end if required.”
Labour MP Neil Coyle tabled amendments to the Counter Terrorism Bill that would change the law to bar JustGiving from keeping any money above admin costs for charitable fundraising campaigns. It comes after JustGiving took £16,700 from the £334,908 in total donations raised for victims of last year’s London Bridge terror attack.
Some of the largest fundraising platforms have been keeping all or part of Gift Aid
A spokesman for the online fundraising site said: “JustGiving is incredibly proud of the work we do day in, day out to support hundreds of thousands of good causes by tens of millions of people every year, often in the most difficult of circumstances.
“The small fee allows us to instantly enable people to give safely and securely within moments of an incident taking place, raising incredible amounts for those most in need.”