Virgin's charity fundraising site 'will undercut Justgiving'

Virgin Money Giving claims 72 per cent lower charges than its rival

The Virgin Group has claimed that the transaction charges for charities on its new fundraising website will undercut rival companies by more than 70 per cent.

Virgin Money Giving, which will be launched in the summer, said its pricing structure, announced last week, included charges to charities that worked out 72 per cent lower than those on donations through Justgiving.

It said that because its service included reduced VAT and debit card fees it would charge a charity £2.16 on a donation of £100. It said that Justgiving would charge £7.60 on the same donation and Bmycharity would charge £7.48.

Virgin Money Giving said the structure would "add millions of pounds to the bottom line of UK fundraising".

Anne-Marie Huby, managing director of Justgiving, said: "Charities will continue to look for value and expertise when selecting their strategic online partner. They will choose the team that can help them raise more, and Justgiving will continue to lead the way.

"By its very name, Virgin Money Giving is a promotional vehicle for the Virgin Money brand," she said. "Charity giving should not be used as a marketing opportunity."

A spokesman for Bmycharity said it welcomed Virgin Money Giving and said it was positive that charities could offer more choice to their supporters.

Virgin Money Giving
, a not-for-profit online fundraising venture by the Virgin Group, was first announced last year (Third Sector Online, 6 November).

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