A Charity Commission move to block further donations to CharityGiving.co.uk has raised questions about the safety and security of donation sites. In its investigation, the regulator found that at least £250,000 that had passed through the site was never forwarded to charities, and that trustees The Dove Trust had failed to file accounts since 2009.
While not among the larger sites in its field, CharityGiving still recorded donations of around £100,000 per week and allowed users to create a host of mini-sites through which funds could be transferred.
Charity Commission head of investigations and enforcement Michelle Russell said: “We have taken this action because of serious concerns about the trustees’ management of the fundraising portal and the charity’s financial situation. We recognise this will cause concern among the donors and fundraisers who have collected money through the site, and for the charities who are expecting to receive those funds. However it is now clear that the financial situation of the charity means there was no option but to suspend the online portal.”
The crackdown prompted Zarine Kharas – founder and CEO of the sector-leading JustGiving – to reassure her customer base that all donations made through the site were “100% ring-fenced,” meaning that funds wouldn’t even be accessible to administrators or liquidators if the firm went under.
With less financial support and fewer resources than the majors, it would be logical to consider that smaller charity portals would be more vulnerable in the current climate, particularly as they have been suffering from an image problem: in the wake of the Boston Bombing, NBC noted that some sites in the field such as GoFundMe and GiveForward were charging between 5% and 7% in fees on donations made to injured victims and recovery projects.
In May, the National Council for Voluntary Organisations (NCVO) unveiled research suggesting that public-sector funding for charities is on the decline and could be up to 12% lower in 2017/2018 than it is this year. It remains to be seen how that increased pressure of government cuts to grants and key sources of charity income will affect giving websites. On one hand, their activities may be similarly constrained – but on the other, they could thrive as charities turn to the general public for greater support.