Givealittle Adapts for Future Growth

28 July 2016

Givealittle has announced today that from 1 September it will charge a flat 5% fee on the amount raised by fundraisers on the site. This change ensures the long term sustainability of New Zealand’s leading non-profit crowdfunding platform.

Givealittle Chief Giving Officer Tom Beyer said “Givealittle’s success has been phenomenal – in the last three years, the amount that individuals, charities and communities have raised through the site has grown from $500K per year to $22M a year. We have a duty to keep that growth going so that more New Zealanders can continue to raise funds for the causes that they are passionate about. This comes at a cost – so we need to cover the expense of the work we do everyday in keeping the site running, and improving the giving experience.”

He says that the introduction of a fee is about supporting and enabling growth, and that the Spark Foundation Trustees are committed to ensuring that Givealittle remains a non profit. The new fee will cover some of Givealittle’s costs - specifically bank fees, payment processing fees and out-sourced website hosting, as well as staff for customer service and website development.

In addition, says Beyer - “we need to keep improving the service and functionality that we offer”. Givealittle recently launched Givealittle Plan, which enables regular support of charities via payroll giving – and “demonstrates our intent to continue offering new services to fundraisers and donors.”

Givealittle is owned and operated by the Spark Foundation, which will continue to support the platform. Spark Foundation will still make a significant contribution to the running costs of Givealittle, as the introduction of fees won’t meet all of the site’s expenses. The new approach means the Foundation will be able to invest more in other impactful projects, says General Manager Lynne Le Gros.

Since its original purchase in 2012, Spark Foundation has invested $4.9 million in supporting the Givealittle platform. In the 2016/17 financial year, Givealittle’s operating costs are expected to be well over $2 million, which will only be partly funded by the new 5% fee.

Fundraiser Fees Facts:

•The 5% fee is inclusive of GST, and will come into effect on September 1st, 2016

•Fees will be deducted from the funds raised at the time of disbursement

•Donors will have the option to make a top-up donation directly towards offsetting fundraiser fees (fees will not be incurred on top-up donations)

•It remains entirely free to start a fundraising page on Givealittle.

•Donations over $5 to donee organisations are still tax deductible for the donor

•Givealittle will continue to issue eligible tax invoices on behalf of donee organisations.

Treatment of Pages:

•Pages that close before September 1st will not incur any fees.

•Pages that are started before September 1st, and that close after September 1st, will incur fees only on the funds raised from September 1st onwards.

•Pages that start on or after September 1st will incur fees on all funds raised

•For charities and schools who have an ongoing presence on Givealittle, only funds raised after September 1st will incur fees.