Online Fundraising Platforms: A Practical Guide for Small UK Charities
Sponsorship forms passed around at work have mostly given way to a shared web link. Here is how the major online fundraising platforms actually work, and what a small community group should check before signing up.
Published July 2026A generation ago, sponsoring someone for a charity walk meant signing a paper form and handing over cash or a cheque later. Today, the same sponsorship usually happens through a page on an online fundraising platform, shared by text and social media, with donations processed by card in a few seconds. For small community groups still relying entirely on cash collections at events, understanding how these platforms work opens up a source of giving that otherwise goes untapped, particularly from supporters who no longer carry cash at all.
How the basic model works
Most platforms follow a similar pattern: a fundraiser creates a personal page linked to a specific charity or cause, sets a target, and shares the page with friends, family and colleagues, who donate directly through the page using a card or digital wallet. The platform handles payment processing, sends the funds on to the charity on a regular schedule, and in many cases automatically claims Gift Aid on eligible donations on the charity’s behalf, which removes a genuine administrative burden that would otherwise fall on a small volunteer committee trying to track and reclaim Gift Aid manually from dozens of individual cash donations.
What it costs
Fees vary between platforms and have changed considerably over the years as the market has developed, so it is worth checking current terms directly rather than relying on older assumptions. Some platforms operate on a voluntary tip model, where the donor is invited to add an optional contribution toward the platform’s running costs on top of their donation, with the charity receiving the donation itself in full. Others charge a fixed percentage fee deducted from each donation, plus a separate processing fee for the card payment itself. For a small charity choosing between platforms, the practical question is not simply which fee is lowest, but which model most donors will actually engage with, since a platform that is unfamiliar or awkward to use will suppress donations regardless of its fee structure.
Gift Aid handled automatically
One of the more valuable practical features of the major platforms is automated Gift Aid handling: eligible UK taxpayer donors tick a box confirming their eligibility, and the platform calculates, claims, and forwards the additional twenty-five pence per pound directly to the charity without any further paperwork on the charity’s side. For a small group used to chasing paper Gift Aid declarations after a cash collection, this alone can represent a meaningful and largely effortless increase in the value of every online donation received.
Setting up correctly from the start
Charities using these platforms for the first time should register as an official charity partner rather than relying on individual fundraisers to select an unverified cause manually, since a verified charity profile ensures funds are routed correctly and that Gift Aid can actually be claimed. It is also worth setting clear internal guidance for supporters on how to label their fundraising page — naming the specific event and cause rather than a vague description — since donors are considerably more likely to give, and to give more, when a page clearly explains what the money is for and who is asking.
Where it fits alongside traditional fundraising
Online platforms work best as an addition to established community fundraising rather than a wholesale replacement for it. A candlelit evening, a village fete, or a sponsored walk still benefits from the atmosphere, the local visibility, and the cash collections that happen on the day itself; an online page simply extends the reach of that same event to supporters who cannot attend in person, or who prefer to give by card rather than cash. Combining a physical collection bucket on the night with a shared online page in the weeks beforehand tends to capture a wider range of donors than relying on either method alone.
The Fundraising Regulator publishes guidance on good practice for charities using digital fundraising tools, including transparency around fees and how donor data should be handled, and it is a useful reference point for any committee setting up an online platform for the first time and wanting to get the basics right from the outset.