The Good Exchange is a Not-for-Profit organisation and is wholly owned by a Registered Charity. In order to make The Good Exchange sustainable and increase its potential to further develop and grow the platform to bring greater benefit to its users, we have to charge a fee. The fee is placed on the charitable project amount sought and the platform automatically adds a 5% fee (+VAT) to every new charitable project registered on The Good Exchange. For example, if an applicant is seeking £1,000 for a project, the total amount sought will be displayed as £1,060 (the 5% fee +VAT or 5% of £1000 =£50 + 20% (VAT) of £50=£10).
The Good Exchange will take the 5% fee (+VAT) from each donation (including Gift Aid) and grant made through the site at the point The Good Exchange transacts the funds to the charitable project in accordance with our Terms & Conditions. The Good Exchange does this, rather than wait until the project is fully funded or ‘de-listed from the platform’, to ensure each charitable project receives funds raised throughout the period the project is ‘live’ on the platform and does not have to then reimburse The Good Exchange at the end.
The Good Exchange does not add on any transaction costs to giving, these are absorbed within the fee structure.
For the first-time charities and Not-for-Profit organisations can do all of their grant applications and fundraising in one place with just a single application.
Any surplus income (after costs) will be reinvested in the communities which The Good Exchange serves.
This is what The Good Exchange will do for your fee:
- 24-hour operation of The Good Exchange platform so it can meet applicants, funder, donors and fundraisers’ requirements and handle high levels of traffic whilst keeping all of your information secure.
- Striving to improve the Good Exchange platform for the benefit of all users through creation of additional features and continual improvement to assist charities and Not-for-Profit organisations to advertise fundraising events and attract funders, donors and fundraisers to raise grants and donations more efficiently.
- Creating new fundraising tools and services for charities and Not-for-Profit organisations, funders, donors and fundraisers at no additional cost.
- Handle management of donations, grants, match funding and the processing of Gift Aid we claim on charities' behalf, being regularly audited by HMRC.
- Our expert team will provide dedicated customer service for charities, funders, donors, and fundraisers.
- By providing a transparent and interactive platform, applicants have a full fundraising service where they can track donations, Gift Aid, fundraisers, grants and match funding and share information.
- Funders can communicate directly with applicants through the system and can share shortlists and funding offers so they can collaborate and create co-funding partnerships.
- Funders can create analytics reports to inform on current and future funding.
- Providing free support and advice to charities and Not-for-Profit organisations on how to raise funds effectively.
- Enables your project to be visible to a wide audience through the integration of social media
- You donate £10.00, with an option to add Gift Aid if eligible, and we take our 5% fee (plus VAT) from your donation and send all the rest to your charity or Not-for-Profit organisation.
- If eligible we reclaim the Gift Aid from the government (this adds 25% to your donation, Gift Aid is also subject to the 5% fee (plus VAT)
- Your charitable cause then receives the Grant / Donation plus Gift Aid (where eligible) minus the 5% fee (plus VAT). So for every £10.00 you give, the charity gets £11.79.
- Unlike other charitable and crowdfunding platforms, The Good Exchange doesn’t add the transaction costs to its fee which means more money for your charitable cause.
- Also, we do not charge any subscription fees for using the service.
A key point to note is that the fee is added to the project as an extra amount to be raised. Whilst the platform takes the fee at transaction it could, alternatively, accrue 100% of funding and then take the £600 fee at the end of the project. If this method was used, projects would only receive funding at the end of the ‘listing’ on The Good Exchange which through research, is not of interest to charitable projects.
How does Gift Aid work?
Gift Aid allows UK charities with eligible charitable projects listed on The Good Exchange, to claim back the basic rate of tax already paid on donations by an individual. Therefore, under current rules 25p from every £1 given can be claimed back from the government. This is because when a UK taxpayer provides a donation to a charity tax has already been paid on that money therefore this taxable amount is reclaimable from HMRC. Therefore, when making a donation, as per the example below, Gift Aid can enhance the amount of giving.
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