Virgin Money Giving breaks the £200 million barrier
- Over £200 million raised by fundraisers since launch
- Over £6 million extra delivered to charities compared to main competitor
- Over £72 million raised in 2012, with 25% growth in total donations year-on-year
Virgin Money Giving, the not-for-profit online donation service from Virgin Money, has today announced its annual results for 2012 and confirmed that it passed the £200 million fundraising milestone at the end of May 2013.
Donations to charities in 2012 through Virgin Money Giving totalled £72 million including Gift Aid, 25% higher than in 2011. This illustrates the power of online giving and is in contrast to the Charities Aid Foundation report published late last year, which showed consumer donations to charity falling by 20%.
Virgin Money Giving has, between its launch in late 2009 and the end of May 2013, helped fundraisers to raise £201 million (including Gift Aid) and due to Virgin Money Giving’s not-for-profit business model, this means an extra £6 million has been delivered to charities compared to its main competitor.
Virgin Money Giving is the official online fundraising partner of the Virgin Money London Marathon, the largest one day annual fundraising event in the world. Through its support, fundraising for the 2013 race through Virgin Money Giving has so far reached a record-breaking £18.3 million (including Gift Aid).
Virgin Money Giving operates as a not-for-profit business, charging a small fee (2%) on donations to ensure it can deliver an effective service to charities that is sustainable for the future. Virgin Money Giving believes its not-for-profit business model is right for the sector. There is no requirement for Virgin Money Giving to price its services at a premium to drive a profit margin, meaning charges remain low and more money reaches charities. However, by ensuring that it covers its costs, Virgin Money Giving will not sustain losses that mean it can not provide a viable service for the future.
Sir Tom Shebbeare, Chairman of Virgin Money Giving said: “Online giving is an easy way for people to make donations to charity and it is an efficient way for charities to raise funds. Online giving currently accounts for only a small proportion of personal giving in the UK, but it is growing rapidly, despite pressure on overall consumer giving levels. While research shows charitable giving falling 20% year-on-year, we have recorded an increase of 25% in 2012. For a newcomer to the sector to have already raised £200 million is significant.”
Jo Barnett, Executive Director at Virgin Money Giving said: “We are delighted to be serving over 6,500 charities now. We recognise that offering high quality support to charities is fundamental to the success of our business and so we continue to invest in our technical infrastructure and operational capability. Virgin Money Giving receives over 15 million website visitors per year now and our website availability is over 99.9%.”
The fee of 2% of donations is based on Virgin Money Giving’s view of costs when Virgin Money Giving is operating at scale. As a result of this approach, Virgin Money Giving has made losses in its early years and these losses have been absorbed by Virgin Money Holdings (UK) Limited. In 2012, Virgin Money Giving made a pre-tax loss of £419,000, a considerable improvement on its loss of over £1 million in 2011. Virgin Money Giving’s annual report and accounts are available at uk.virginmoneygiving.com/giving/annualresults.
As a not-for-profit business, Virgin Money Giving is committed to charging charities the minimum fees required to cover its running costs when it is operating at scale. Any profit achieved after covering operating costs will be used to further develop the service offered to charities and fundraisers or to reduce fees.
Virgin Money Giving continues to enjoy access to the infrastructure and financial services expertise of the Virgin Money Group to ensure that virginmoneygiving.com is both reliable and secure. It complies with the Payment Card Industry Data Security Standard (PCI-DSS) to maintain robust security over card details provided during the donation process.
During 2013, Virgin Money will continue a programme of investment and development of Virgin Money Giving, with the objective of continuing to help charities increase the amount they raise.
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NOTES TO EDITORS
About Virgin Money Giving
- Virgin Money Giving is the not-for-profit online fundraising arm of Virgin Money and was established in 2009. Virgin Money uses its infrastructure and expertise as a financial services business to ensure that Virgin Money Giving is efficient and secure
- Virginmoneygiving.com is free for fundraisers, charges a flat registration fee of £100 + VAT for charities and a 2% fee on all donations before Gift Aid. For every £10 raised, charities receive £12.15. Virgin Money Giving charges charities the minimum fees needed to cover the running costs of the site. Any profit achieved after covering operating costs will go towards reducing fees further or improving services for fundraisers and charities
- Fundraisers can personalise their fundraising pages, send out email alerts and manage their fundraising events. They can include their own content, photos and links to their page as well as customise messages for their supporters. Fundraisers can also link their page to social networking sites. Virgin Money Giving also contains fundraising ideas and tips, offering help and advice to fundraisers on how to raise more for charity
- Virginmoneygiving.com is the official sponsorship website of the Virgin Money London Marathon, Royal Parks Half Marathon, Virgin Active London Triathlon and Nike Run to the Beat, as well as the Virgin Money Cyclone
About Virgin Money
- Virgin Money provides savings, mortgages, credit cards, pensions, investment and protection products to over four million customers
- Virgin Money’s business ambition is to make “everyone better off” – this philosophy underpins our approach to business as we aim to offer good value to customers, treat employees well, make a positive contribution to society and deliver a profit to our shareholders
- Virgin Money is the official sponsor of the London Marathon, the largest one day annual fundraising event in the world. Virgin Money aims to help runners raise over £250 million over 5 years and will use its infrastructure, online capability and financial expertise to deliver that through Virgin Money Giving