A furious MP has demanded fundraising website JustGiving returns hundreds of thousands of pounds meant for the victims of terror and tragedy in Britain.
Neil Coyle MP was left reeling when he learnt the company is able to profit from donations of well-wishing Brits.
According to the MP a total of £500,000 has now been taken by JustGiving which was instead meant for those impacted by the London Bridge and Manchester Arena terror attacks as well as Grenfell residents.
The Bermondsey and Old Southwark Labour politician said he was ‘sickened’ by the company, adding that ordinary people had ‘no way of knowing’ their donation may not reach victims.
Grenfell Tower in Latimer Road, West London where at least 72 people died. Fundraisers collected £4million through JustGiving for the victims
In a scathing letter to Tracey Crouch MP, Parliamentary Under Secretary of State for Sport, Tourism and Heritage, he demanded JustGiving returned the funds.
He wrote: ‘I was very disturbed to learn that JustGiving had retained almost £17,000 in raw profit from the generous public donations to the people affected by terror in my community.
Neil Coyle MP wrote to Tracey Crouch to urge her to insist fundraising websites return donations
‘I was, frankly, sickened to learn that JustGiving kept £500,000 from public donations to terror attack victims in London and Manchester, as well as to those affected by Grenfell.
‘This on top of their admin fees and comes from their policy of keeping 5% of all donations made through the platform. I think this policy should be waived in circumstances like terror or tragedy on the scale of Grenfell and it is a disgrace that their corporate profit has been put before the need to ensure they operate ethical policies.’
The fee is taken from the gift aid received, if the person is eligible, or is deducted from the total if no gift aid can be claimed. Gift aid is the income tax charities can reclaim on your donation.
On top of its five per cent cut, charities, depending on their size, are required to pay a monthly subscription fee of up to £39, plus VAT.
A total of £5.5million was raised for the victims of the Manchester Arena bombing and JustGiving kept £277,000.
Another £334,908 was raised for the victims of the London Bridge terror attack and JustGiving kept £16,700.
In 2107, £4million was raised for the victims of Grenfell Tower and JustGiving retained £200,000.
The MP said he is pleased the Government ‘is helping establish a new body to oversee the collection and distribution of public donations’ but called on the money making firms to return the cash.
He added: ‘I also hope that, as part of your plans, you will be asking JustGiving to return the £500,000 they picked from the pockets of victims of terror and tragedy last year, including families in my constituency.
‘No member of the public who donated last year could have known that their generous support for families affected could end up in the coffers of an American private equity owned firm.
Neil Coyle MP is pushing the Government to demand money from the companies which profit from disaster
‘Repayment would help as a gesture of recognition of the hurt JustGiving have caused as well as better demonstrate their commitment to ensuring the new body has full public confidence.’
In the Grenfell tragedy in June 2017 at least 72 people were killed and hundreds of others made homeless.
At Manchester Arena, in May 2017, 22 people were killed by a terror attacker with a suicide vest and on London Bridge, eight people were murdered by three terrorists.
In the hours after the fire, which claimed 71 lives, the public rushed to donate money to the survivors and victims.
More than £400,000 was raised by local Karolina Hanusova, who created a page on the website JustGiving.
But JustGiving, which lets people raise money at the click of a button, pockets five per cent fees on what is raised through its pages.
JustGiving has been asked to comment.