How it works

The Pledge

Pledgit is similar to other fundraising websites, but with an emphasis on match-funding. On Pledgit, most campaigns are match-funded either by the person who creates the campaign or by a third party - a company or grant-making trust.

So, instead of saying
“I’m doing a cycle ride for charity. Please donate.”

the fundraiser (or ‘pledger’) says:
“I’m doing a cycle ride for charity. For every £1 you donate, I will donate £1.”

When setting up the campaign, the pledger has to put in a 'cap' -  the maximum amount they are willing to give. This is important because otherwise their liability would be unlimited. In the example above, if the cap was set at £500 and public donations reached £3,000, the pledger would have to pay £500, and the charity would receive £3,500 before deduction of fees. If public donations reached only £356, the pledger would have to pay £356. The cap is the maximum, not the minimum the pledger has to pay.

To make sure that the pledge is secure, the pledger has to provide a credit or debit card at the time he or she creates the campaign. We authorise a charge on the card for the amount of the cap so that, at the end of the campaign, we know we can obtain the funds owed and pass them on to the charity. The card authorisation also acts as a brake on over-enthusiastic pledgers: we want people to give as much as they can afford, but not more!

Just because the cap is reached does not mean that the campaign ends or public donations stop. In fact, the goal of every campaign is for public donations to exceed the cap, so that the charity benefits from ‘generosity momentum’.

Donations

Users of the site can browse campaigns, watch videos, and read the stories of pledgers and their association with charities. You can see the value of donations in real-time, and see how much of the pledge has been ‘captured’. If you decide to donate, you can do so by credit or debit card.

When you donate, you will be asked whether you want the charity you have given to recover Gift Aid (equivalent to 25% of the value of your donation). If you answer yes, you will be asked to complete and submit an online form which asks various questions - such as whether are a UK taxpayer and have paid enough income tax in the current tax year to cover the amount of your donation. If you answer yes to all questions, the answers will be recorded by Pledgit, and Gift Aid will be collected from HMRC either by Pledgit on the charity's behalf (if that is what the charity wants) or by the charity itself. So a donation of £40 with Gift Aid successfully reclaimed will be worth £50 to the charity before deduction of fees (see below).

Fees and deductions

Pledgit charges a 2% fee on donations, but we only charge it on the public donations, not on the fundraiser's pledge. So if a campaign raises £4,000 in public donations and the pledge is £500, our fee is £80 (2% x £4,000). We use our fees to cover administration and technical costs. Our aim is to be cost-neutral, and if we can bring the % down, we will.

The only other deduction is for the payment processing charges which Pledgit incurs on credit and debit card transactions. In common with other fundraising website, we pass these costs on to charities at their actual cost by deducting them from total donations before remitting the balance to the charity.

We do not levy a % charge on Gift Aid, whether we are collecting the Gift Aid from HMRC on a charity's behalf or merely supplying the charity with the data it needs to claim Gift Aid directly.

Passing on donations to charities

At the end of each campaign, Pledgit sends the charity a statement showing the number of donations, the value of donations, the amount match-funded, the payment processing charges, and the amount of Pledgit’s fee. From these numbers it calculates the amount owing to the charity and this information, along with Gift Aid data, is sent to the charity. If the charity has asked us to collect Gift Aid on its behalf, we make that claim with HMRC and transfer the money to the charity as soon as it is received.

Data privacy

Pledgit has a full privacy and cookies policy which explains how we handle your personal information. The short version is – we do not pass your data to the charities you have donated to unless you have said that you are happy for us to do that. Nor do we send you marketing emails ourselves unless you have opted in to that. And we never, ever sell, trade or rent your details to third parties. If you have registered with us, your Account page enables you to change your privacy settings.


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