Justgiving

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Giving Limited
Just Giving
Limited company
Founded 2000
Founder Zarine Kharas (CEO)[1]
Anne-Marie Huby (managing director)
Headquarters Bankside, London, United Kingdom
Revenue £14m (2011)[2]
£1.5m (2011)[2]
Number of employees
120
Website justgiving.com

JustGiving is a global online social platform for giving.[3] The firm's headquarters are located in Bankside, London.

History[edit]

In 2000, Zarine Kharas and Anne-Marie Huby founded JustGiving, a company to provide online tools and processing services to enable the collection of charitable donations.[2] The company's website allowed people to donate to charities registered with the site with a credit or debit card online, and offered people doing sponsored events the chance to build their own webpage to collect sponsorship from supporters.

2006 was JustGiving's first profitable year.[4]

In June 2011, JustGiving claimed that it had provided its service for more than 9,000 UK registered charities and 1.9 million fundraising pages for users, collecting over £770 million since launch.[5] The cumulative total passed £1 billion in March 2012.[6]

Gift Aid processing[edit]

In the UK, donations by individuals are treated as being given after the deduction of income tax at the basic rate (20% in 2011), and charities can reclaim the basic rate income tax paid on the gift from HMRC via Gift Aid.

Charities that register on the JustGiving site complete the necessary legal forms to authorise JustGiving to request the tax from HMRC on the charities' behalf. JustGiving then automates the reclaiming of Gift Aid on individual donations made through its website, and passes this on to the charities. 85% of donations through the site are eligible for Gift Aid tax relief.

Fees[edit]

JustGiving charges a 5% fee on donations to cover the cost of running the business.[7] The fee does not include card processing fees, which are deducted additionally.[8]

For donations that are eligible for Gift Aid, the 5% is charged on the reclaimed tax as well as on the original donation, and the fees are deducted only once the claim has been settled by HMRC.

Additionally, charities have to be registered with JustGiving to receive donations. Charity registration has required a monthly subscription fee of £15 since 1 April 2002, regardless of whether any donations are made. Prior to that date, charities could register with JustGiving for free.[4]

Company status and use of fees[edit]

JustGiving Foundation has a "Use of 'Limited' exemption" status in the UK.[9] This requires it to meet all of the following conditions.[10]

  • It must be a private company limited by guarantee.
  • The company's objects (aims) must be the promotion or regulation of commerce, art, science, education, religion, charity or any profession.
  • The Memorandum and Articles of Association must include clauses that:
  1. . Any profits or other income should be applied to the promotion of the company’s objects.
  2. . Prohibit the payment of dividends, or any return of capital, to the company’s members.
  3. . Each member will contribute to the assets of the company if it is wound up during the time that he or she is a member, or within 1 year of ceasing to be a member.
  4. . In the event of the company being wound up, all company assets will be transferred to another body with similar objects, or which promotes a charity.

JustTextGiving[edit]

In May 2011, JustGiving launched JustTextGiving in conjunction with Vodafone, which allows mobile phone user to donate between £1 and £10 to a charity using a SMS message, which is paid for by the donor through reverse SMS billing. Vodafone invested £5 million to ensure that charities do not incur any set-up costs, or commissions deducted from donations, ensuring that they receive 100% of donations.[11][12]

Notable fundraisers[edit]

In 2010 it was reported that Charlie Simpson, aged 7, raised over £210,000 (£145,000 in the first 48 hours) via his JustGiving page for the 2010 Haiti earthquake relief programme by UNICEF.[13]

In April 2012, Claire Squires, who collapsed and died whist running the London Marathon, posthumously raised in excess of £925,000 for Samaritans through JustGiving (without including Gift Aid).[8] It was determined that she had put a scoop of a product containing DMAA into her water bottle.[14] JustGiving were to receive £26,000 but agreed to waive their 5% administration fee and donate it to Samaritans.[8]

In March 2014, Christian Smith was killed in a crash with a car during a 24-hour charity bike ride for Mind. Donations via his JustGiving page rose to more than £68,000 after his death was covered in the media.[15]

In April 2014, Stephen Sutton raised over £4 million for the Teenage Cancer Trust,[16] after help from celebrity backers including Jason Manford

Reception[edit]

In 2002, JustGiving won the New Media Awards Grand Prix award and also Best Use of the Web award.[17][18]

In 2004, JustGiving was recognised in the 2004 Charity Times annual Awards in their Fundraising & IT Services category. Charity Times claimed the company had "transformed the face of donating in the UK".[19]

Charities Aid Foundation (CAF) reported that JustGiving "was enabling charities to tap Britain's youth with viral marketing and sophisticated processing technology for online donations." They said that the main beneficiaries have been smaller charities, which find donation tracking and fundraising costly.[4]

In 2008, The Guardian reported Kharas as acknowledging that "the commission charged by justgiving.com is controversial".[4] In justifying their 5% fee, JustGiving states that profits are reinvested in new tools.[8]

Corporate affairs[edit]

Name[edit]

JustGiving is the trading name of Giving Ltd in the UK and Justgiving Inc. in the US.[20]

ReachOut Online Limited was incorporated in November 1999, renamed as ClickForAction.com Limited in March 2000, and renamed again as Giving.com Limited in May 2000.[21]

ClickForAction PLC was incorporated in April 2000, and renamed as Giving Ltd in May 2000.[21]

Ownership[edit]

Giving.Com Limited's sole shareholder is Giving Ltd.

First round capital included the venture capital firm Vesta Capital Advisors.

Both Vesta Group Limited and Pollcast APS own at least 15%.[citation needed]

International expansion[edit]

In 2003, JustGiving launched in the United States, changing its name to FirstGiving in 2005.[citation needed] FirstGiving is located in Davis Square, Somerville, Massachusetts.[citation needed]

In 2010 the New York Times reported that FirstGiving.com was "among the best known" online fund-raising sites.[22]

Revenue[edit]

As at 31 December 2010, as per accounts filed on 30 September 2011, Giving Limited had cash on hand of £5,924,865.[23]

Year Revenue Profit/(loss) Registered charities
2003 £273,000[4] (£1.043m)[4]
2004 £851,000[4] (£676,000)[4]
2005 £1,900,000[4] (£136,000)[4] 1,000[24]
2006 £3,900,000[4] £815,000[4]
2007 £ £
2008 £ £ 3,000[4] – 5,000[24]
2009 £ £ 6,000[24]
2010 £ £
2011 £ £ 9,000[5]
2012 £ £

See also[edit]

References[edit]

  1. ^ Whittle, Sally (30 May 2002). "Is it a girl thing?". The Guardian. Retrieved 24 November 2012. 
  2. ^ a b c Smithers, Rebecca (6 April 2011). "Charitable giving: BT launches website where 100% of donations go to charity". The Guardian (UK). Retrieved 20 November 2012. 
  3. ^ Walker, Chris. "JustGiving online charity platform arrives in Australia to make donating easier". Daily Telegraph. Australia. Retrieved 19 June 2014. 
  4. ^ a b c d e f g h i j k l m Inman, Phillip (24 March 2008). "Charities go online to stay in the running and reach the next generation of givers – JustGiving.com has dealt with more than £250m in donations since 2001". The Guardian. Retrieved 24 November 2012. 
  5. ^ a b JustGiving...by the numbers at the Wayback Machine (archived 30 June 2011)
  6. ^ "£1 billion raised through JustGiving". Community pages. JustGiving. 28 March 2012. Retrieved 4 January 2013. 
  7. ^ "How our fee works – and what we do for it". JustGiving. 23 July 2014. 
  8. ^ a b c d Oxlade, Andrew (24 April 2012). "JustGiving agrees to waive its £46,250 cut as marathon death girl's fundraiser page hits £400,000". MailOnline (UK). Retrieved 20 November 2012. 
  9. ^ "Company Category". Justgiving Foundation is a PRI/LBG/NSC (Private, Limited by guarantee, no share capital, use of 'Limited' exemption). Retrieved 11 January 2015. 
  10. ^ "Exemption from using the word 'limited' in a company name". Retrieved 11 January 2015. 
  11. ^ Warman, Matt (9 May 2011). "'New age' of charity donations by text message". The Daily Telegraph. 
  12. ^ "JustGiving and Vodafone launch free text donation service". Fundraising UK. 9 May 2011. 
  13. ^ "London boy raises £145k for Haiti quake aid by cycling". BBC News. 25 January 2010. Retrieved 20 November 2012. 
  14. ^ Squires, Claire (30 January 2013). "Claire Squires inquest: DMAA was factor in marathon runner's death". BBC (UK). Retrieved 1 April 2015. 
  15. ^ "Family of Mind charity cyclist Christian Smith 'moved beyond belief'". BBC News. 25 March 2014. Retrieved 24 November 2014. 
  16. ^ https://www.justgiving.com/Stephen-Sutton-TCT
  17. ^ "Home". NMA Efficiency Awards 2006. New Media Age. Archived from the original on 23 December 2005. Retrieved 2 March 2012. ... early Grand Prix winners including ... JustGiving in 2002 
  18. ^ "Home". Nmaawards.co.uk. Retrieved 14 March 2011. [not in citation given]
  19. ^ "UK Charity Awards 2004 winners". Charitytimes.com. Archived from the original on 3 February 2007. Retrieved 2 March 2012. 
  20. ^ "justgiving.com". Contact info. Alexa.com. Retrieved 4 January 2013. 
  21. ^ a b "WebCHeck – Select and access Company Information". companieshouse.gov.uk. Retrieved 4 January 2013. 
  22. ^ Wallace, Amy (5 September 2010). "Online Giving Meets Social Networking". The New York Times. Retrieved 29 November 2012. 
  23. ^ "Giving Limited 2010 account". bizzy.co.uk. Retrieved 24 April 2011. 
  24. ^ a b c Who we are at the Wayback Machine (archived 16 April 2009)