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BT is launching a digital fundraising service, rivalling JustGiving and Virgin Money Giving, to create a closer affiliation with charities.
MyDonate guarantees 100% of funds donated will go directly to charities, excluding credit card charges of 1.3% and debit card charges of 15p per transaction. This means BT will absorb “millions of pounds” in administration costs.
Currently, JustGiving takes 5% commission from every donation and charges charities £15 a month, while Virgin Money Giving takes 2% commission from donations. Last year Bmycharity – a third major player in the sector and one that, like BT, is commission-free – was bought by Help For Heroes.
BT’s corporate social responsibility programme director Donna Young said, “MyDonate’s benefit to BT is boosting consumer perception about our affiliation with charities. And it will help employees feel proud about working for us. You can’t underestimate pride in the workforce.”
The service allows fundraisers and charities to set up pages to promote their events. Charities can also receive one-off and regular donations unrelated to specific events.
Launch charities for MyDonate, which also helped develop the service, include the NSPCC, Women’s Aid, Cancer Research UK, Changing Faces and Kids Out.
BT will promote MyDonate with a ’Festival of Fundraising’, appearing at a number of British summer music festivals alongside partner charities.
MyDonate will feature TV presenter Ben Fogle as its brand ambassador in marketing material.
Rival online fundraising site JustGiving is readying the launch of its first corporate platform, targeted at FTSE100 companies, in the hope of plugging the gap left by the decline in public sector funding and individual donations to charities.
Young said, “I hope companies like JustGiving see MyDonate as a positive venture because it will grow the market; only 7% of people currently give to charities online. It will also help to keep JustGiving on their toes – competition is good in any market.”
This story first appeared on marketingweek.co.uk