The Good Exchange is a Not-for-Profit organisation 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 organisation is seeking £1,000 for a charitable project, the total amount sought will be displayed on their The Good Exchange page as £1,060 (the £60 is calculated as 5% of £1000 = £50 (the 5% fee) + 20% VAT on the £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. This means that charitable causes receive their funding on an on-going basis and do not have to wait until the project has reached its fundraising target (or an agreement has been made to ‘de-list’ the project from the platform’). It also means that there is never a requirement to reimburse The Good Exchange to cover fees at the end of the fundraising project. The Good Exchange does not charge additional banking transaction costs to those giving money, these costs are absorbed within the 5%+VAT fee.
1. How is The Good Exchange 5% fee charged?
- You donate £10.00, with an option to add Gift Aid if eligible, and we take our 5% fee (+VAT) from your donation and pass all the rest to your charity or Not-for-Profit organisation’s designated bank account
- If eligible, we reclaim the Gift Aid from the government (this adds 25% to your donation)
- Your charitable cause then receives the Grant/Donation plus Gift Aid (where eligible) minus the 5% fee (+VAT).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.
|Gift Aid Collected||£2.50|
|The Good Exchange Fee||5% +VAT|
|Bank Processing Charges||£0.00*|
|Usage Cost per Month||£0.00|
|Set Up/registration Fee||£0.00|
|Net Donation – Amount Charity Receives:||£11.79|
* Included in The Good Exchange Fee
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 the time of the transaction it could, alternatively, accrue 100% of funding and then take the £60.00 fee at the end of the project. If this method was used, projects would not receive their money until the end of the ‘listing’ on The Good Exchange which research has found is not is not what charitable organisations want for their fundraising projects.
2. 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.
|Donation||Gift Aid (25% of Donation)||Total Donation|
3. How can donors or fundraisers make a complaint?
We, at The Good Exchange, endeavour to create a platform and experience that is easy to use and follow. However, we accept things sometimes can go wrong and when they do, we want to rectify the problem for you and importantly to learn from the issue to ensure others do not face the same problem. Therefore, it is important to us that you provide constructive feedback, so we can make the changes appropriate and necessary.
We understand that each person making a complaint is an individual and should be treated accordingly. Therefore, in order to ensure we deal with each complaint effectively we do ask that a support ticket is logged as this provides a record of your complaint and ensures each ticket is handled by the correct member of The Good Exchange team. Each newly logged ticket is automatically given a unique reference number to ensure that our team is notified and can manage it appropriately. Please follow the process below to ensure that your issue is handled satisfactorily:
- Raise a support ticket here.
- You will receive an automated confirmation but lease allow 3 business days for us to respond with an answer or next steps
- If the problem is complex or requires longer to provide an answer we will let you know within 3 business days but we will aim to respond to your complaint within 15 calendar days. If there is a delay, we will keep you updated on our progress
- If you are not happy with the answer provided, then we will arrange for it to be reviewed by a manager who will advise as to whether they agree or disagree with outcome provided.
4. What is your policy on refunds?
As per our Terms & Conditions, a donation you have made on the website cannot be refunded to you unless there has been a technical error caused by The Good Exchange and you have contacted us as soon as possible to report the error. We will also consider a refund where, in limited circumstances, the fundraising organisation to which a donation has been made contacts us and has asked us to make the refund. These requests are treated as exceptions and requests will be reviewed on a case by case basis. Any costs incurred may, at our sole discretion, be passed onto you.
Unless there is a technical error as stated above, please speak with the Applicant Organisation before contacting us. Please contact us by e-mail at: email@example.com or raise a support ticket here.
Where we believe there is a conflict of interest between a donor and the charitable organisation which has not been legitimately declared or we consider there to be illegality in the donation being made, we reserve the right to return the funds to you. We will contact you before this happens.
5. How are Donations protected against fraud and how can donors be sure their contribution is being used for its intended purpose?
The Good Exchange endeavours to ensure every organisation fundraising for a project on the platform is a legitimate organisation; we do not allow individuals to fundraise for themselves and use a private bank account. We check details provided on registration/application against Companies House and the Charities Commission as well as asking for bank statements and bank details to ensure the bank account is not registered to an individual but to the organisation in question. We also ask that the project costs are itemised, ideally supported by 3rd party evidence, before we make a project ‘live’ (visible on the platform and able to take donations and grants). Only The Good Exchange can make a registered organisation and its fundraising project ‘live’. Beyond these checks, The Good Exchange may not be able to verify the authenticity of the cause and payments made through The Good Exchange for The Good Exchange to disperse on your behalf are at your own risk.
In accordance with our Terms & Conditions, it is the responsibility of you, the donor, to ensure you are supporting the correct project/fundraiser. Further, whilst we endeavour to undertake appropriate checks on all organisations listed, we cannot warrant that the information on the platform is correct, up to date, nor that fundraisers and organisations seeking fundraising have the appropriate authority, licenses, registrations or permissions required to fundraise or publicise. We do state that it is your sole responsibility to ensure you have undertaken your own due diligence on the organisation/fundraiser seeking funding before making a donation.
We encourage and advise all fundraising organisations/fundraisers to keep their projects up to date especially where they begin to utilise the funds being raised. However, we cannot warrant that this will happen nor that your donations will be used for the particular purpose stated on the platform.
5.1 How do I know my money is safe to be paid through The Good Exchange?
The Good Exchange is ‘Registered’ with the Financial Conduct Authority (FCA) under the Payment Services Regulations 2017 (FRN: 797421) for the provision of payment services (PSD2). This means that the FCA has assessed those that run our business as being fit and proper to carry out a regulated financial service and that we must comply with certain regulatory obligations such as the requirement to detect and deter money laundering, protect our clients’ data and treat our customers fairly and to the same high standard that they can expect from any authorised payment service provider, such as a bank.
Before using a charitable payment, fundraising or crowdfunding platform for fundraising or for making a donation, you should always check that it is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 797421) for the provision of payment services.
5.2 What will The Good Exchange do if it suspects fraudulent activity?
The Good Exchange employs preventative controls to minimise the opportunity for fraudulent occurrences. Regular checks identify anomalies which are then subject to detective controls to investigate any suspected irregularities fully. Any such irregularities are treated very seriously and investigated and reported to senior management and Board. Reactive controls are implemented to minimise the risk of future occurrences.
5.3 What happens to donations in the event that the money is retained or recovered by The Good Exchange due to fraudulent activity?
Upon suspicion of fraudulent activity, all related funds are quarantined pending full investigation. Where appropriate, third party advisors are used to determine the legal position and subsequent movement of quarantined funds.
5.4 What is your policy on donations to private bank accounts
The Good Exchange requires that all charitable causes fundraising on the platform have a bank account designated to the organisation and it does not pay money into not any individuals’ bank accounts. See also 5. Above.
5.6 Where do the donations and funds paid through The Good Exchange go?
All monies raised through The Good Exchange go into a Client Account which is separate to The Good Exchange’s own business bank account. This minimises the financial risk to the funds being raised for charitable purposes. The Good Exchange currently disperses funds raised on a minimum of a monthly basis to the fundraising charity or good cause. Grants are dispersed in accordance with the grant-maker’s payment instructions.
6. What happens to any interest that may be accumulated on the donation whilst it is held?
Due to the frequency of payments being made by The Good Exchange to the charitable projects, interest is not being accumulated.
7. Is there a minimum or maximum amount that can be donated?
The minimum amount that can be paid through The Good Exchange is £2.00 due to the bank processing fees imposed by the bank on The Good Exchange. We strongly suggest that for amounts over £1,000.00 a BACS payment is made to The Good Exchange. To find out how to do this, please e-mail firstname.lastname@example.org or call us on: 01635 500800 and our support team will quickly take you through the process. We recommend a BACS payment because of the differential in bank processing costs.
8. Is there a cap on the maximum total amount a fundraising project can raise?
Yes. The Good Exchange differs to many other fundraising platforms because the charitable causes with projects seeking funding on The Good Exchange are fundraising for a specific amount. The total amount sought is backed up with supporting evidence demonstrating all the costs. Therefore, once the total the total required for that project has been reached, the platform will not allow ‘over-funding’ through more grants or donations. For example, if it is your intention to give £100.00 to a project but only £40.00 is required to reach 100% of the project’s target, only £40.00 will be taken from your donation.