Fundraising platforms and tips

Fundraising platforms are increasingly popular as a way to raise money online for good causes. However, some platforms request an optional tip fee from the giver. Just where is your money going?

How fundraising platforms work

Most UK Giving platforms take payments in two ways:

A payment processing fee is deducted from each donation before it is passed on to the charity/good cause. They cannot be charged as extra on top of your donation. From 13 January 2018 companies have not been able to charge any fees for the use of credit or debit cards. This includes other payment methods, such as Apple Pay and PayPal.

For example, GoFundMe takes 2.9% plus 25p for every transaction. JustGiving takes 1.9% plus 30p. Crowdfunder 1.9 -2.4% plus 20p, depending on the type of organisation/individual.

However, these platforms also request a voluntary “tip.” This, they claim, is for helping to maintain the sites. However, it turns out that this can lead to significant additions to the donor’s costs.

What’s in a tip?

The UK ban on card surcharges means you can’t be charged extra for using a consumer card or digital wallet. Because the “tip” is voluntary and not tied to a particular payment method, it isn’t a prohibited surcharge. The processing fee is deducted from the donation, not added as a card-specific surcharge to the payer.

The Fundraising Regulator code of practice lays out the changes. See 10.2.1 regarding fees.

Questions in Parliament

MPs from all parties raised questions following research by the advisory firm Strand Partners’ which claimed that charities missed out on over £7.5m last year

“… because of the commission that online fundraising platforms charge charities for claiming gift aid on their behalf.”

The Fundraising Regulator (self regulatory) updated its Code of Fundraising Practice which was published in May and came into force from 1 November 2025. Amongst other things it expects greater transparency around fees and optional tips, with simple, prominent opt-outs for donors.

This Code isn’t law but charities and fundraisers are expected to follow it. The regulator can investigate, publish rulings and require improvements which could put pressure on them to change practice.

The Competition and Market Authority (CMA) could take action against platforms if they are misleading. It would be a breach of the Consumer Protection from Unfair Trading Regulations.

GoFundMe example

Here is an example of a GoFundMe donation. This site defaults to taking 16.5% of your donation as a tip. In this example, that’s 82.5 pence on top of five pounds. You can move that slider to 0. But it would be easy to miss this.

Don’t get caught out

Lyn Newman was caught out by JustGiving. She says “I supported someone who did a charity fundraiser and was charged nearly £5 on a £25 donation.”

The sites state that they will refund the tip if requested.

If you feel that a donation fees/tips were not clear when you donated, contact the Fundraising Regulator with your evidence.

See How to raise money for a good cause for other ways of raising money.