How it works

The Pledge

Pledgit is similar to other fundraising websites, but with a key difference: on Pledgit, the person who creates a campaign has to match all the donations made by other people to the campaign, usually at a ratio of 1:1.

So, instead of saying
“I’m doing a cycle ride for The Urology Foundation. Please sponsor me.”
the fundraiser (or ‘pledger’) says:
“I’m doing a cycle ride for The Urology Foundation. For every £1 you donate, I’ll 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 £1,000 and public donations reached £3,000, the pledger would have to pay £1,000, and the charity would receive £4,000 before deduction of fees. If public donations reached only £756, the pledger would have to pay £756. 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 ‘used up’. If you decide to donate, you can do so by credit or debit card, or SMS text. There is no limit on card donation, but when donating by text the options are £3, £5 or £10.

If you donate by card the form you fill in online will ask whether you are a UK taxpayer and have paid enough income tax in the current tax year to cover the amount of your donation, and you will also be asked if you would like the charity to recover the Gift Aid relief, which is 25% of the value of your donation. If you answer yes to all 3 questions, the answers will be recorded by Pledgit and passed on to the charity which will then be able to reclaim the extra 25% from HMRC. So a donation of £40 with Gift Aid successfully reclaimed will be worth £50 to the charity before deduction of fees (see below).

If you donate by SMS text the procedure is slightly different but the end result is the same. After sending your donation, you will receive a text from Pledgit containing a link to a web page. That page will invite you to complete a Gift Aid form and, since we will not have your name and address at that stage (because a text donation does not require you to provide them) the form will also ask for those details. As with card donations, if you complete the form and answer yes to all 3 questions, the charity will be able to reclaim Gift Aid.

Fees and deductions

There are three types of fee on Pledgit.

The first is the £45 per year which charities pay if they want to have an enhanced profile on the website. This is not obligatory. All charities on The Charity Commission database can have a campaign set up in their favour on Pledgit even if they do not have an enhanced profile. The advantage of the enhanced profile is that it enables a charity to say more about itself and to show donors the good work it is doing. The £45 cost per year is much lower than equivalent charges on other fundraising websites.

The second charge is the fee which Pledgit charges on transactions. This is 2.5% of the donation amount. So if a campaign raises £4,000 in public donations and the pledger’s cap is £2,000, the total before the fee is £6,000 and the amount of the fee is £150. The fee is deducted by Pledgit from the total donation amount before the balance is remitted to the charity. Fees are used to cover Pledgit administration and technical costs and to pay its staff.

The third charge is for the payment processing charges which Pledgit incurs on credit and debit card transactions and PayPal 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. Donations made by SMS text do not incur payment processing charges, so there are none to be passed on to charities where payment is made by that method.

Since Pledgit does not reclaim Gift Aid on charities’ behalf (we only collate information about donors’ eligibility and pass that information on to charities), we do not levy a % charge on Gift Aid as some platforms do.

Passing on donations to charities

At the end of each campaign, Pledgit’s system automatically generates a statement which shows the number of donations, the value of donations, the amount of the the pledger’s cap charged, the total payment processing charges, and the amount of Pledgit’s fees. From these numbers it calculates the amount owing to the charity and this information, along with Gift Aid data, is sent to the charity.

The date on which payment is made to the charity depends on how the donations were made:

  • Donations made by credit or debit card are remitted to the charity by bank transfer within 5 working days of the end of the campaign.
  • Donations made by SMS text are remitted to the charity by bank transfer within 70 working days of the end of the campaign.

The reason for the long delay on SMS text donations is that the mobile phone companies do not release the money to Pledgit until at least 65 days after the date of donation.

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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