JustGiving is investigated over claims it makes use of underhand ways to get more cash from donors in an effort to increase its earnings

Britain’s biggest online charity fundraising platform is facing mounting pressure amid claims it quietly steers donors into paying extra money for itself while giving the impression everything is going to good causes.

JustGiving, which processed more than £580 million in donations last year, is being examined by the Fundraising Regulator over the way it encourages users to leave optional ‘tips’ for the company.

The platform, widely used for sponsored runs, memorial pages and charity appeals, allows donors to choose how much they want to give. 

But critics say the design of the website makes it difficult for users to avoid paying extra on top of their intended donation.

After selecting a donation amount, users are directed to a summary screen where an additional tip – typically set at around 17 per cent – is automatically added for JustGiving. 

While it is possible to reduce the amount, the lowest visible option remains above 10 per cent. Anyone wishing to leave nothing must click through to a separate option and manually enter £0.

Campaigners argue this process nudges donors into tipping without fully realising they are doing so, particularly when they believe the platform is free to use or that the extra money is going to the charity itself.

JustGiving says it does not charge charities a platform fee. However, charities are still charged card processing fees of around 1.9 per cent plus a fixed amount per donation to cover external payment costs. 

JustGiving, which processed more than £580 million in donations last year, is being examined by the Fundraising Regulator over the way it encourages users to leave optional ‘tips’ for the company (stock image)

In addition, the company takes a cut of the Gift Aid that charities reclaim from the Government.

Company accounts suggest that, once all fees and tips are included, around 10 pence of every pound donated ends up going to JustGiving rather than the charity named on the page.

The scrutiny comes as the company continues to post eye-catching profits. Last year it made around £35 million on an income of roughly £65 million, a profit margin of more than 50 per cent. 

The profits flow to its American parent company, Blackbaud, which bought JustGiving in 2017 for £95 million.

In its own financial filings, JustGiving has previously warned that negative publicity around its online giving platforms could damage user trust and harm future revenues.

The Fundraising Regulator updated its code of practice last November to tighten rules around online fundraising fees. 

The new guidance states that where charges or tips are optional, platforms must give equal prominence to the option of paying nothing, and the process for doing so should be simple and clear.

A spokesperson for the regulator said it does not consider JustGiving’s current interface to be fully compliant with the updated code and confirmed discussions are ongoing. 

Sources suggested that failure to make changes could lead to a formal investigation and the issue being escalated to ministers.

Consumer groups have also raised concerns. Which? warned that many websites now use design techniques that subtly push users towards spending more than they planned.

Lisa Webb, a consumer law expert at Which?, said: ‘People are increasingly confronted with manipulative prompts online that steer them towards decisions they didn’t intend to make. 

‘JustGiving’s approach to tips isn’t as clear as it should be and appears to guide donors towards leaving a sizeable tip for the platform.

‘Tipping should be presented as a genuinely equal choice. Making zero an obvious, prominent option would go a long way towards addressing these concerns.’

JustGiving said tipping is entirely voluntary and transparent. 

A spokesperson said: ‘There is the option to leave a voluntary contribution to support the running of JustGiving, but there is absolutely no obligation to do so. 

‘We have an ongoing dialogue with the Fundraising Regulator and are assessing what changes may be needed to comply with the updated code.’

The platform is used by some of the UK’s biggest charities, including Cancer Research UK and the British Heart Foundation, whose logos feature prominently on the site. 

Both organisations declined to comment on whether they believe donors are being misled by the tipping system.

While regulators stress that fundraising platforms play a vital role in supporting charities, they insist transparency is essential. 

As commercial businesses, platforms are entitled to make a profit, but donors must be able to see clearly where their money is going.

With millions of people using JustGiving every year, the outcome of the regulator’s talks could have major implications for how online charity fundraising works across the UK.