Localgiving is the only online giving platform that allows unregistered charities and community groups to benefit from Gift Aid. We facilitate this through a unique donation journey, where donations are made to one of our partner Foundations, before being passed on as an unrestricted charitable grant to the group in question.
Here's a simple step-by-step guide to how it works:
1. A person decides to make a donation to a group registered on Localgiving. When they go to the donation page, they will see text displayed that explains the donation is being to a Foundation on behalf of the group: "Your donation is made to Localgiving Foundation and they pay the funds to your chosen charity"
2. The donor chooses the amount that they would like to donate and makes their payment. They are then asked if they would like to claim Gift Aid. If so, they provide the relevant details and Localgiving then processes the Gift Aid claim with HMRC on behalf of the relevant Foundation.
3. The donation is processed by Localgiving, subject to payment processing and commission fees. Localgiving transfers the remaining amount, before Gift Aid (including matched funding, where applicable), to the group as a charitable grant. This is done on behalf of the Foundation. Funds typically reach the charity's bank account within 8 - 10 working days.
4. HMRC processes the Gift Aid claim. A 5% fee is deducted from the total Gift Aid amount and the rest is passed onto the group on behalf of the Foundation, once more as a charitable grant. This typically takes around 6 weeks to reach the charity's bank account.
A £10 donation turns into £12.50 with Gift Aid. After fees, a charity will typically receive £11.55*. If Gift Aid is not claimed, the charity will typically receive £9.18* from a £10 donation.
We are constantly working to keep our fees as low as possible in order to ensure that as much of each donation reaches the charity as possible. Localgiving is not-for-profit and any fees taken go towards covering operation costs.
*depending upon payment method used.