The donation journey
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:
- 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 made to a Foundation on behalf of the group: "Your donation is made to Localgiving Foundation and they pay the funds to your chosen charity"
- 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.
- The donation is processed by Localgiving, subject to payment processing and commission fees. Localgiving transfers the remaining amount, before Gift Aid (including match 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 2 - 3 weeks.
- 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, as a charitable grant. This typically takes around 6 weeks to reach the charity's bank account.
1.0% + 10p is the fee for UK debit cards, please note that charges vary depending on the payment method. Please find more details about payment processing fees here.
Wondering whether your donations are eligible for Gift Aid? Click here to find out more.