Three in four adults are ‘frustrated’ with the ‘tip trap’ set by some fundraising websites, fresh research reveals.
A recent survey conducted by advisory firm Strand Partners revealed that 76 percent of respondents are frustrated by the way tips are gathered on online fundraising platforms and are urging the Government to address this issue.
Fundraising websites act as a middleman between charities or fundraisers and donors, making donations to good causes simple.
But many now automatically add a ‘tip’ on to the donation amount, which goes straight to the platform – and not the charitable cause.
It’s catching out many generous donors, who end up frustrated after unintentionally paying the automatic charges.
On platforms like JustGiving, when a donor reaches the payment stage, they are presented with a tip option displayed on a sliding scale. The default tip percentage is set at 17 percent, with higher options available at 19 and 20 percent, and lower options at 12.5 and 15 percent.
Giving generously:Â Fundraising websites act as a middleman between charities or fundraisers and donors, making donations to good causes simple
This means on a £50 donation, an £8.50 fee is automatically added.
Donors can change or opt out of these tips, which go directly to the platforms, but only if they spot them – and work out how to reduce them to £0.
However, the sliding scale lacks the option for donors to completely opt out of giving a tip by setting it to £0. Instead, donors are required to manually enter £0 by selecting the ‘enter custom amount’ button.
Almost two thirds of Britons want it to be easier to remove tip options when donating online, Strand Partners found.
Scores of annoyed users have vented their frustration on social media and review websites.
One user says ‘any tip should be opt in, not opt out’, while another says they were ‘disgusted’ to find a donation had been automatically added.
One review of JustGiving says: ‘What an insult. I did not want to leave them a tip.’
If you leave an unintended tip, you can ask the fundraising platform you used if you can get a refund.
It’s not just donors who are feeling frustrated. The research comes as MPs are piling pressure on the Government about the sliding tipping scales.
Cross-party MPs including Annaliese Dodds, MP for Oxford , and Saqib Bhatti, MP for Meriden and Solihull East, have recently pushed the Government on its plans to take any action on the sliding tipping scales.
One of these MPs, Jo Platt, MP for Leigh and Atherton – and a member of the Culture Media and Sport Committee – says: ‘Fundraising platforms play an important role in facilitating giving. But concealed tipping options and hidden charges are unnecessarily diverting money away from charities and misleading donors.’
The tip system means websites don’t levy a platform fee on donations to charities or personal fundraisers anymore in order to run their service.
Instead, it is these tips which now pay for the running of the platforms.
The UK Fundraising Regulator has long maintained the importance of transparency in online donations. In April, it updated its Code Of Fundraising Practice to specify that all voluntary tips must be clearly presented and on equal footing to free donation options.
This is due to take effect in November.
A JustGiving spokesman says: ‘In order for us to continue to support fundraisers, it is essential that we operate as a for-profit organisation. In recent years we have seen growth in the volume of donations which in turn has naturally increased our profitability.
‘Following consultation with some of the UK’s leading charities, in 2019 we moved to a voluntary contribution model, so that as much money as possible could go directly to charities and good causes. This is now standard practice across the industry.
‘Today, anyone using our platform has the option to leave a tip on top of their donation to support the running of JustGiving and this is not compulsory.
‘When people do choose to add a tip, this goes towards investing in and maintaining the technology that helps our site continue to securely raise funds on a global scale, 24/7.’
