I think it is about time that I articulated one elephant-in-the-room aspect of Givahoy, which is where it fits in relation to money. And here it is:
It is not right to take a cut of donations.
There are many reasons for this, specifically for Givahoy as well as in general:
1. Costs do not increase with the amount. You may claim to be subsidising the lower donation fees with the larger ones, but if the fees aren’t capped, then this is just revenue. Why is it not a flat fee to the charity per collection?
2. There are already free ways to give, and these really are pretty simple and people could/should be encouraged to use them. Cash works, but there’s less of it being used, and bank transfers are a bit fiddly for one-offs, but simple for regular giving. Inserting a paid payments layer in there is cynical.
3. These are not traditional transactions – the giver is not receiving something in exchange for the donation, so the purchased guarantee and urgency of a payment is not necessary. The parties can be *trusted* to be acting appropriately.
4. Fees give a reason to not give. The street fundraising chuggers get sign-ups using automatic payments which cost nothing, but the fundraising company will take a significant portion of the giving (decreasing over time from figures like 80% – so 20% reaches the charity in the first year). This puts people off.
5. Contactless terminals are really simple and offer a lot of advantages, but someone is paying for the device, for the merchant fees, for the interchange, and effectively it comes out of the donations. Merchants and customers both dislike the fees aspect, despite the obvious benefit.
We want the donor and the fundraiser to both feel great about giving.
So how does an alternative look?
The Givahoy approach is to charge for value added. If an organisations wants to talk to donors, then we can provide that channel, to the equivalent of cash donations where the donor was unknown. How effective are different messages, or different fundraisers? What locations are best, and in what weather conditions? How well did a campaign go? These questions can be answered by Givahoy.
Givahoy has been set up to remove the hurdles to giving. In addition, we are removing hurdles to collecting – with a bank account number, charity number, and campaign locations and dates where relevant, fundraisers can be set up immediately and at no charge. In return we just want fundraisers to let people know they can give with Givahoy.
The more places people can give, the more people will be wanting to give. This is a classic network effect. We want your help to get there.
If you are a fundraiser and want to give Givahoy a try, then please get in touch!