Concerns over the charging of fees for the collection of Gift Aid discussed in Parliament

Advisory firm Strand Partners have recently published research into the fees charged to charities by online fundraising platforms, such as JustGiving and GlobalGiving. 

It found that charities were charged over £7.5m in the last year in relation to Gift Aid claims alone. The research has raised debate in Parliament on whether the ‘commission’ being suffered in relation to Gift Aid should be banned.

In response to the debate, many of the key fundraising platforms highlighted that the charge is not a commission from which the platforms benefit but a fee to cover essential operational costs associated with receiving donations and processing the associated Gift Aid. This clarification was reflected in Parliamentary questions in late May, when the potential impact of banning the charge on the income of charities was queried by Labour MP Jo Platt. 

Parliamentary Under Secretary of State (Department for Culture, Media and Sport), Stephanie Peacock, responded by noting that most fundraising platforms are registered with the independent and non-statutory Fundraising Regulator, and that the Regulator’s new Code of Fundraising Practice (which will be effective from 01 November 2025) requires fundraising platforms to include information for donors about how fees, including any voluntary tips, are calculated. 

The regulator has confirmed that it will engage with fundraising platforms prior to the Code coming into effect to ensure that the new requirements are clear and platforms understand the transparency of fees and tipping that must be in place.