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Started by RobWalshe at 07-11-2009 1:15. Topic has 31 replies.
  
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 07-11-2009, 1:15
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RobWalshe
Joined on 07-10-2009
Posts 1
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Re: JustGiving commission
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Hi,
Just wanted to add to this debate.
Over the past few years I have donated many times to various charities via Just
Giving. At no time was I ever made aware that Just Giving were taking a
percentage of my donation as a commission. I don’t dispute that this fact
was there in the detail.... no doubt sat next to the Devil..... (cheap shot I
know!).
I find it hard to see a justification for a profitable organization to make
gain from the good nature of the general public. I offer my personal (and it is only
personal!) opinion below via a few comments and queries:
Oxfam are not my favorite charity by any means but they are a not for profit
organisiation. They cover their basic
cost and that's it. No one above a simple salary level makes any profit
from donations made to Oxfam. Those above who draw comparison need to be
more considered in their dialogue.
The representatives of Just Giving make considerable reference to the fact that
their commission is swallowed by the tax regain reclaimed through gift
aid. This isn't a government handout!! If I donate a sum of money,
the government will repay the tax that I paid on that same sum directly back to
the charity. I.e. it isn't a free for all on government funding; it's
my hard earned cash. Furthermore, I'm not happy that Just
Giving see themselves fit to target this revenue for financial gain to enhance
their profit margins.
To the references above concerning the investment made in the technology
involved in supporting the collection of charitable donations, this is my area
of expertise (finally I can speak with some authority rather than just
opinion!!). The software to handle
charitable donations on the scale of Just Giving's is relatively simple and
would require little, if any, investment cost (packages can be bought off the
shelf very cheaply).
As a final thought, I'm a capitalist... hey, money makes the world go
round! But exploiting human kindness at the expense of those who are truly
in need is not something which I can condone.
I welcome any response to my points above, particularly from
representatives of JG themselves.
Rob
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08-16-2009, 1:11
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Jentin
Joined on 08-15-2009
Posts 1
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Re: JustGiving commission
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I want to try and explain some stuff for some people in the easiest sense I can.
While yes, I agree 5% is higher than it could be, this doesnt make the company unfair.
Lets look at some facts. Since JustGiving began in 2001 it had, by 2008, raised over £260 million pounds for charity - money that otherwise might not have been donated at all.
When we break this down, assuming all years were equal we see a more understandable picture:
5% of £260 million is £13 million
Plus 4200 charities £15 membership fee's over 7 years of trading = £441,000
That means over 7 years, just giving made £13,441,000 (Thirteen million four hundred and forty one thousand pounds) that did not go to charity.
Then we need to deduct corporate tax set at 28% which equals £9,677,520
Divided among 7 years of trading means that annually they made £1,382,502 (one million three hundred and eighty two thousand five hundred and two pounds)
Then of course, the costs of running the business need to be deducted - bringing their profit, probably into the £400,000-£800,000pa (per annum) range.
Therefore, if we consider the 5 million people who have donated through JustGiving in comparison to their profit up to 2008 - each one of you have paid, on average (the mean average I think it is), just 84p (£0.84p) per donation for their services to the charity - that means for something like a £100 donation, JustGiving will only profit 84p from it.
But compared to the £37,142,857 that might NOT be going to charity every year if it wasn't for JustGiving, does 84p of your donation really matter?
JustGiving has a strong buissiness model; making a profit and providing a first class service for us to use in our endeavours to raise money for charity.
If JustGiving was really so bad, would it be receiving awards for it contributions? No, probably not - let alone 4 of them!
Would small charities without the man power to re-claim gift-aid be getting it back? Nope
Would some small charities have shifted their entire fundraising over to JustGiving for the administration services they otherwise would'nt have? Probably not
Yes they make a profit (a pretty insignificant one in the grand scheme of things) ... but they are doing a lot of good that, in most cases, can probably justify their reasons for being a for-profit company, which I might add, they don't try and hide somewhere deep in the small print of a document lost in a filing cabinet never to be seen again.
(P.S. I am not affiliated with JustGiving at all... I just love the service they provide and think they get incredibly unfair criticism)
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Justgiving comm... » Suggestions and... » Feedback » JustGiving commission
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