Online expansion makes Gift Aid work harder for charities, says Virgin Money Giving
Government rules out Gift Aid increase
Virgin Money Giving is urging charities to do all they can to maximise Gift Aid take-up after Minister for Civil Society Nick Hurd confirmed that any increases to Gift Aid rates for charities is “unlikely”.
The Minister told the Institute of Fundraising's National Convention that the focus on reducing the public sector deficit meant a rate increase in the Gift Aid percentage was ruled out.
But Virgin Money Giving says charities can substantially increase Gift Aid earnings by using online donations – research conducted in 2009* revealed that online donations provided the greatest Gift Aid take-up.
The not-for-profit fundraising service, which has raised over £14 million since its launch in October 2009, currently sees 86% of all donations submitted claiming Gift Aid – more than double the 40% for all donations*, such as collections and through sponsorship forms.
Grant Bather, spokesman at Virgin Money Giving said: “Gift Aid is a priority for charities and the news that the Government is unlikely to raise this threshold means that charities need to make sure that Gift Aid take-up is at the highest possible level.
“By donating online, donors can easily acknowledge their Gift Aid eligibility, and charities can receive payments quickly and securely, which supports Nick Hurd’s pledge to drill down on bureaucracy in the sector.
“With only 2% of all charitable donations currently conducted online, the sector as a whole should be working together to promote online giving as the most efficient avenue for improving Gift Aid take-up and raising overall donations for charity.”
Notes to Editors
*UK Giving 2009 study from the Charities Aid Foundation and NCVO.
For further information
Tel: 07834 844 427
Kevan Reilly / Chris Jarvis
Citigate Dewe Rogerson
Tel: 0207 638 9571
About Virgin Money Giving:
- Virgin Money Giving is the not-for-profit online fundraising arm of Virgin Money and was established in 2009. Virgin Money uses its infrastructure and expertise as a financial services business to ensure that Virgin Money Giving is efficient, secure and offers a high quality service to all fundraisers, charities and donors.
- Virginmoneygiving.com, which is backed by hundreds of major charities, officially opened to all fundraisers for all charity events on 14 October 2009 and estimates it will deliver an extra £5 million on top of every £100 million raised for charities.
- Virginmoneygiving.com is free for fundraisers, charges a flat £100 + VAT registration fee for charities and a 2% fee on all donations before Gift Aid which means for every £10 raised charities receive £12.46.
- Virgin Money Giving charges charities the minimum fees needed to cover the running costs of the site. Any money left over after covering operating costs will go towards reducing fees further or improving services for fundraisers and charities.
- Fundraisers can personalise their pages, send out email alerts and manage the different events they might be taking part in. They can include their own content, photos and links to their page as well as customise messages for their supporters. Fundraisers can also link their page to social networking sites.
- Virginmoneygiving.com is the official sponsorship website of the Virgin London Marathon, Royal Parks Half Marathon and Sony ‘Run to the Beat’.