Virgin Money has launched the long awaited online fundraising service, Virgin Money Giving.
Virgin Group says the not-for-profit service will raise an additional £5m for every £100m put through its system.
The site will only look to cover its costs and will not charge for administering Gift Aid to donations. Any profit Virgin Money Giving makes will be invested back into improving the service it offers and further cost reductions.
As with other online fundraising and sponsorship systems such as Justgiving and BeMyCharity Charities can create their own promotional pages on the site and send out email alerts to fundraisers to promote events and fundraising, view reports and access fundraiser data.
Virgin Money are the new sponsor of the annual London marathon from 2010, having signed a £17m deal for a five-year contract to replace Flora, which sponsored the event for 14 years.
Virgin founder, Sir Richard Branson said: “Virgin Money Giving is a great example of business working in partnership with the third sector to create new ways of doing things where everyone is better off.”
The Virgin site is not yet open to fundraisers but the public launch will be announced shortly.
Rival online fundraising service Justgiving.com currently has over 8m users worldwide.
Justgiving’s Managing Director, Anne-Marie Huby, talked to Third Sector earlier this week, explaining the differences between the two models:
“By its very name, Virgin Money Giving is a promotional vehicle for the Virgin Money brand. For us, charity giving is not a marketing opportunity, it is our sole purpose. As a social enterprise, we continue to re-invest all our profits into our platform for the benefit of charities.
Charities will continue to look for value and expertise when selecting their strategic online partner: they will choose the team who can help them raise more, and Justgiving will continue to lead the way. Our new platform launching in the summer will transform online fundraising once again.”