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| Click and give | Click and give |
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| Fundraising websites are now a popular way of collecting money for a good cause. But what impact have they had on sponsoring people and have they helped charities? | Fundraising websites are now a popular way of collecting money for a good cause. But what impact have they had on sponsoring people and have they helped charities? |
| Such sites have raised millions | Such sites have raised millions |
| Children like Charlie Simpson have ridden bikes to raise money for charity for years, but few have ever made national headlines. Of course, few of them have ever raised more than £173,000 from people around the world either. | Children like Charlie Simpson have ridden bikes to raise money for charity for years, but few have ever made national headlines. Of course, few of them have ever raised more than £173,000 from people around the world either. |
| The tale of the boy from London who rode his bike to raise funds for earthquake survivors in Haiti is now well-known, and heart-warming. | The tale of the boy from London who rode his bike to raise funds for earthquake survivors in Haiti is now well-known, and heart-warming. |
| But "little Charlie" is only one of millions of charitable folk who raise money through their exploits to help worthy causes. | But "little Charlie" is only one of millions of charitable folk who raise money through their exploits to help worthy causes. |
| It wasn't long ago that every person running a race or attempting some feat would send around a sponsorship form at their - or their parents' - office. But now, anyone looking to raise any significant amount of cash has migrated online. | It wasn't long ago that every person running a race or attempting some feat would send around a sponsorship form at their - or their parents' - office. But now, anyone looking to raise any significant amount of cash has migrated online. |
| Dog-eared forms | Dog-eared forms |
| Most of us don't give a second thought to clicking a friend's charity link when they're planning to run the London Marathon, a local fun run, or a few laps around the block. But online sponsorship has become hugely popular and looks likely to grow even more. | Most of us don't give a second thought to clicking a friend's charity link when they're planning to run the London Marathon, a local fun run, or a few laps around the block. But online sponsorship has become hugely popular and looks likely to grow even more. |
| Sponsorship websites are changing the ways charities work, largely because they are so easy to use, reach many more people and dispense with the need to handle crumpled notes and spare change. Some organisations have seen as much as a 40% increase in donations as a result of being on such sites - and that's during a recession. | Sponsorship websites are changing the ways charities work, largely because they are so easy to use, reach many more people and dispense with the need to handle crumpled notes and spare change. Some organisations have seen as much as a 40% increase in donations as a result of being on such sites - and that's during a recession. |
| Charlie Simpson raised more than £170,000 on JustGiving | Charlie Simpson raised more than £170,000 on JustGiving |
| Most donations grow as a result of Gift Aid, which is tax relief on the money donated and is automatically applied online. The sites also give personal information about the motivation behind the activity - a far cry from the dog-eared forms of yesteryear. | Most donations grow as a result of Gift Aid, which is tax relief on the money donated and is automatically applied online. The sites also give personal information about the motivation behind the activity - a far cry from the dog-eared forms of yesteryear. |
| JustGiving is perhaps the best known of these sites. Little wonder, since it's been around for about 10 years and raised more than £450m for over 8,000 charities across the UK. The site was founded in 1999 by Zarine Kharas, who was fascinated with the possibilities of the still-young internet. Ms Kharas believed there was a way to use the internet to enable charitable giving. | JustGiving is perhaps the best known of these sites. Little wonder, since it's been around for about 10 years and raised more than £450m for over 8,000 charities across the UK. The site was founded in 1999 by Zarine Kharas, who was fascinated with the possibilities of the still-young internet. Ms Kharas believed there was a way to use the internet to enable charitable giving. |
| "A lot of charities didn't believe [online giving] would work," says JustGiving's managing director Anne-Marie Huby, who joined forces with Ms Kharas in early 2000. "It took nearly a year to build it... and to show charities what we were about to do." | "A lot of charities didn't believe [online giving] would work," says JustGiving's managing director Anne-Marie Huby, who joined forces with Ms Kharas in early 2000. "It took nearly a year to build it... and to show charities what we were about to do." |
| JustGiving's site launched in January 2001 with fewer than 100 charities on board. With concerns about the security of online transactions, it grew slowly. But in 2002, JustGiving teamed up with the London Marathon, raising awareness of the site's legitimacy. Once people tried the online format, it seemed to win them over. | JustGiving's site launched in January 2001 with fewer than 100 charities on board. With concerns about the security of online transactions, it grew slowly. But in 2002, JustGiving teamed up with the London Marathon, raising awareness of the site's legitimacy. Once people tried the online format, it seemed to win them over. |
| 'Empower' | 'Empower' |
| Such sites allow people to personalise their appeal. Users simply choose a charity and a sponsored event, and create their own microsites. The links to their page can be sent out by e-mail or posted on Facebook pages. | Such sites allow people to personalise their appeal. Users simply choose a charity and a sponsored event, and create their own microsites. The links to their page can be sent out by e-mail or posted on Facebook pages. |
| "I think in many ways it's more personal," says Chris Field, the head of fundraising and marketing for Aspire, one of JustGiving's partner charities that works with people with spinal cord injury. "With paper, you go up and talk to them. But with JustGiving, you can put up pictures, videos, write a story as to why you're doing it." | "I think in many ways it's more personal," says Chris Field, the head of fundraising and marketing for Aspire, one of JustGiving's partner charities that works with people with spinal cord injury. "With paper, you go up and talk to them. But with JustGiving, you can put up pictures, videos, write a story as to why you're doing it." |
| Ms Huby agrees: "We empower supporters to be their charity's best advocate. No Madison Avenue copywriting is going to equal that." Charlie Simpson's success is evidence of that. | Ms Huby agrees: "We empower supporters to be their charity's best advocate. No Madison Avenue copywriting is going to equal that." Charlie Simpson's success is evidence of that. |
| There are still things that can be done to make it easier for people to give Chris FieldAspire | There are still things that can be done to make it easier for people to give Chris FieldAspire |
| Sponsorship sites also provide an opportunity to reach more people. You don't have to rely on donations from your mum or officemates, you can get support from relations in America or the Facebook friend you met on holiday. They also eliminating the fear of asking someone for money face-to-face. | Sponsorship sites also provide an opportunity to reach more people. You don't have to rely on donations from your mum or officemates, you can get support from relations in America or the Facebook friend you met on holiday. They also eliminating the fear of asking someone for money face-to-face. |
| "It's a very easy way of asking for money," says Louise Richards, the director of policy and campaigns for the Institute of Fundraising. "You can actually reach a lot more people and it's very easy to donate. I think something like online giving can encourage [more] people to give." | "It's a very easy way of asking for money," says Louise Richards, the director of policy and campaigns for the Institute of Fundraising. "You can actually reach a lot more people and it's very easy to donate. I think something like online giving can encourage [more] people to give." |
| Since Aspire joined up with JustGiving, it has seen about a 40% increase in donations and has effectively been able to weather the recession as a result. | Since Aspire joined up with JustGiving, it has seen about a 40% increase in donations and has effectively been able to weather the recession as a result. |
| Legitimacy | Legitimacy |
| JustGiving's success means other sites are now popping up and competing for fundraisers, like BMyCharity. The recently launched Virgin Money Giving also sees opportunities for other sponsorship sites. All of them charge charities some fee to compensate for basic business expenditures. | JustGiving's success means other sites are now popping up and competing for fundraisers, like BMyCharity. The recently launched Virgin Money Giving also sees opportunities for other sponsorship sites. All of them charge charities some fee to compensate for basic business expenditures. |
| It is difficult to compare the costs of these sites with other third-party aids to fundraising, such as direct mail. Mobile phone operators can take as much as 30% of a charitable donation received via text, while charities that contract out for face-to-face fundraising typically pay a flat rate. | It is difficult to compare the costs of these sites with other third-party aids to fundraising, such as direct mail. Mobile phone operators can take as much as 30% of a charitable donation received via text, while charities that contract out for face-to-face fundraising typically pay a flat rate. |
| "On a typical donation, people need to realise not everything is being given to charity," says Ms Richards. "All activities would have costs involved with them." | "On a typical donation, people need to realise not everything is being given to charity," says Ms Richards. "All activities would have costs involved with them." |
| SPONSORSHIP WEBSITES JustGiving charges 5% on each donation plus £15 a monthVirgin Money Giving charges a flat £100 fee, plus 2% per donationBMyCharity charges a flat £150 fee plus advertising revenue | SPONSORSHIP WEBSITES JustGiving charges 5% on each donation plus £15 a monthVirgin Money Giving charges a flat £100 fee, plus 2% per donationBMyCharity charges a flat £150 fee plus advertising revenue |
| All of the sponsorship sites do offer Gift Aid processing on most donations. In November 2009, Virgin Money Giving released a report claiming that charities lose out on as much as £750m a year because of unclaimed Gift Aid. Its site went live in October 2009 and already has hundreds of charities on board. | All of the sponsorship sites do offer Gift Aid processing on most donations. In November 2009, Virgin Money Giving released a report claiming that charities lose out on as much as £750m a year because of unclaimed Gift Aid. Its site went live in October 2009 and already has hundreds of charities on board. |
| "Because the Virgin brand is well-known, it can only do the overall market good," says Scott Mowbray, spokesman for Virgin Money Giving. "The early signs are that the site is a welcome entry to the market." | "Because the Virgin brand is well-known, it can only do the overall market good," says Scott Mowbray, spokesman for Virgin Money Giving. "The early signs are that the site is a welcome entry to the market." |
| Ms Huby believes that what JustGiving provides charities - innovative ideas, around-the-clock support, personalised analysis - is what makes it valuable to members. Mr Field says that JustGiving's influential name boosts his smaller organisation's legitimacy, making the cost a moot point. | Ms Huby believes that what JustGiving provides charities - innovative ideas, around-the-clock support, personalised analysis - is what makes it valuable to members. Mr Field says that JustGiving's influential name boosts his smaller organisation's legitimacy, making the cost a moot point. |
| "[In the UK] there's a tendency to think that cheap is best or free is best," says Ms Huby. "But once we have the opportunity to explain how costly and inefficient charity work used to be and how we remedy that, they begin to understand." | "[In the UK] there's a tendency to think that cheap is best or free is best," says Ms Huby. "But once we have the opportunity to explain how costly and inefficient charity work used to be and how we remedy that, they begin to understand." |
| Sites are used by many who run the 2010 London Marathon | Sites are used by many who run the 2010 London Marathon |
| JustGiving says it reinvests all profits into the business, with a particular focus on the future, with plans for an iPhone application and other technologies. The site expanded to the US in 2003 and hopes to make the platform available to other international developers. | JustGiving says it reinvests all profits into the business, with a particular focus on the future, with plans for an iPhone application and other technologies. The site expanded to the US in 2003 and hopes to make the platform available to other international developers. |
| And the future of charitable fundraising may well be online, where people can combine personal interests - from moustache-growing to old-fashioned running - with a desire to do good to others. | And the future of charitable fundraising may well be online, where people can combine personal interests - from moustache-growing to old-fashioned running - with a desire to do good to others. |
| "Charity giving is a virtual product; there's no [tangible] fulfilment," says Ms Huby. "It's ideal for the web." | "Charity giving is a virtual product; there's no [tangible] fulfilment," says Ms Huby. "It's ideal for the web." |
| Little Charlie and millions of fundraisers like him would doubtless agree. | Little Charlie and millions of fundraisers like him would doubtless agree. |
| A selection of your comments appears below. | |
| The rise of the charity aspect of the London Marathon and similar races, and the ease with which sponsorship can be set up has fundamentally changed the perception of the sport. In many ways I don't think many even consider it as a sport any more, it's a charity fundraiser. This media viewpoint is such that if you say you're doing a marathon, people now automatically assume that you're doing it for charity, and almost do a double-take when you tell them you're doing it as a personal challenge and because you're a runner. Their view of a runner is an elite runner or a charity jogger, with nothing in between, and so the concept of people doing it without the charity aspect is something that had never occurred to them. Why else would you want to put yourself through so much if it wasn't to collect money?David P, Windsor, UK | |
| I get a least two email "Sponsor Me" requests a week, mostly from people I do not know who have picked up my email address from another email sent to multiple addresses. Last year I set myself a 'giving' target and when that was achieved. I started sending a polite note to those who sent the request explaining that. I also have a policy of giving only to people I know personally. I am happy to enjoy the convenience of online sponsorship and gifting but within certain restrictions, the first being PLEASE only ask people you actually KNOW to sponsor you. Jaye, Rutland, England | |
| I can see that sites like JustGiving make it easier for people to donate and for charities to receive gift aid. However, the money is taken from your account immediately before the event takes place. I know of one person who did not turn up for a sponsored bike ride because "it was raining"! Whilst I do not begrudge charities a donation, I think the money should be taken from your account once the person has completed the event.Anne, London | |
| I took part in Movember (Growing a Moustache during November to increase awareness of Testicle and Prostate Cancer) and if it hadn't been for online donations I wouldn't have raised half the amount that I did. Antony Esposti, Cardiff | |
| Such sites are brilliant for fundraising. Where I have a problem with it is that there is no cap on the amount JustGiving (and presumably the others) will take from any donation. I doubt many people think about that when they make a donation this way. Using the figures in this story, I calculate Charlie's bike ride has made JustGiving £8,650. In this case he could never have raised such a huge total for charity any other way, so it's had to argue against the approach. But when individuals give single large donations, it would seem charitable if these organisations applied a maximum fee.Karen, New Malden, UK | |
| I can't shift the uneasy feeling that the move to online giving has detracted from the reason for the fundraising. "Click and give" may be more efficient at raising money, but the engagement in the charitable purpose is much lower. The giver is often more motivated about supporting the person in their endeavour (such as the marathon or climbing the mountain etc) than the charity they have nominated - surely this is an unhealthy trend? James, London, UK | |
| It's good to finally see a big not-for-profit player in this market. Regardless of how well the charities have done out of the existence of JustGiving & co, it always grates when making charitable donations to be handing a cut to a for-profit business.Peyman, London |
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