JustGiving is accused of misleading donors with 15 per cent ‘hidden fees’ that DON’T go to charity

Fundraising website JustGiving has been accused of misleading donors into paying up to 15 per cent to the company.

The site waived a controversial 5 per cent fee on donations in March after a Daily Mail investigation revealed it was taking more than £20million a year from good causes.

JustGiving faced anger that it had profited from appeals including those over 2017 Westminster terror attack hero PC Keith Palmer and the Manchester Arena bombing victims.

It has since introduced a ‘voluntary contribution’ of up to 15 per cent, which is taken automatically unless donors opt out.

JustGiving has made an estimated £500,000 extra per month since switching to voluntary contributions, according to US consultancy Off Wall Street quoted by the Times. The London-based fundraising platform was bought by US company Blackbaud for £95million in 2017.

Off Wall Street claims the JustGiving website ‘appears to use misleading language’ to suggest money it makes will be invested to benefit charities as if it were a ‘non-profit entity’.

The website has enabled more than £3.8billion to be raised for charities since its launch in 2001. The previous 5 per cent charge equates to £190million being kept back over that time.

JustGiving’s new voluntary contribution box appears to start at either ten or 15 per cent depending on the user. It can be adjusted to 5 per cent, 8 per cent or ‘other’ – but only by selecting ‘other’ can donors escape the fee.

Off Wall Street estimates that JustGiving and Blackbaud are earning £7.5million per quarter from this mode – £6million more per year than the 5 per cent fee brought in.

JustGiving previously faced anger that it had profited from appeals including those over 2017 Westminster terror attack hero PC Keith Palmer (pictured)

Current fundraising pages on the site include £327,933 for the family of Berkshire PC Andrew Harper, who was killed this year while responding to a report of burglary.

In 2017, the Mail revealed how JustGiving made more than £20million a year from crowdfunding campaigns. Some of the cash was used to keep the site working, but in 2016 more than £10million was spent on staff, who earn an average of more than £60,000, while their boss got £198,000.

The site took at least £32,000 in fees of the £638,000 raised for PC Palmer’s widow and their daughter within two days of his murder.

Elsewhere, JustGiving took its controversial fee from £5.5million raised after the Manchester Arena bombing and £4million donated in the wake of the Grenfell fire disaster. Last month Off Wall Street wrote: ‘In response to political pressure in the UK, Blackbaud made changes to the revenue model at its JustGiving business, which appear to have boosted revenue growth.’ JustGiving said it is a ‘profit-for-good business’ which has helped raise billions.

A spokesman said: ‘Since removing our platform fees, we have made clear that our users have the choice to make a voluntary contribution to support the operation of the platform. We provide users with different options, including contributing nothing at all if they wish.’