Andrea Fragata Ladeira of the new charity aims to raise the funds through commission on the sale of third party insurance and utility products
- This article was corrected on 21 May 2013; please see final paragraph
A new charity that raises funds by selling utility products has said it will raise £1.7m for charity if 100,000 people buy home insurance policies through it for a year.
Care2Save, launched this week, offers buildings and contents insurance from a third party insurer.
This company pays Care2Save a commission, which is passed on to good causes, for its role as a so-called introducer.
The Cheshire-based organisation is the brainchild of Andrea Fragata Ladeira, who splits her time between being its chief executive and commercial director of St Luke’s Hospice.
She said that 80 per cent of the commission is given to the customer’s charity of choice and 20 per cent to the Care2Save Charitable Trust, which will distribute the money to hospices and palliative care projects. A small percentage of the money taken by Care2Save goes on its overheads, said Ladeira.
Care2Save works with three corporate partners, including the insurer Payplan Financial Services, Cavere, which writes the insurance policies, and Ageas, the underwriter. It receives 7.5 per cent commission per transaction.
If 1,000 people sign up to a home and contents insurance policy through the site, a total of £16,560 will go to the charities of their choice and a further £4,140 will go to Care2Save.
If 100,000 people buy policies through the site, a total of just under £1.7m will go to chosen charities and £414,000 will go to Care2Save.
The charities will receive further payments if the policies are renewed.
Payplan developed the website and several other companies covered the charity's other start-up costs.
Ladeira said: "It is getting harder for charities to get the money they need and it is not easy for people at home - they often don’t have the disposable income to help other people.
"You can already buy things via websites where a certain percentage will go to a charity you choose. But the difference is that Care2Save is a charity and we will the take the introducer fee and provide a sustainable income to charities."
Switching her own home and contents insurance to Care2Save saved £207, she said.
She said the charity plans to offer other utility products, such as energy and broadband.
- The article originally said that Ageas paid the start-up costs and that most of the commission went to good causes.