An Introduction to Localgiving.com

Norfolk – Dec 2010

We are a Social Enterprise that aims to empower small local charities & community groups (CG)

• Inspired by the joint vision of Marcelle Speller and CFN Chair, Matthew Bowcock• 50/50 owned by CFN and the Ardbrack Foundation, both reg. Charities.

Online donation site• Extensive search capabilities by location, issue and beneficiary• Unique content including community groups, not only registered charities• Access to charities & CG vetted by CFs in process approved by Charity

Commission.

Provide webpages for VCOs • Simple content management• Online donations, access to online community/mass affluent• Gift Aid - even for community groups, in addition to registered charities• Volunteers needed section, ‘featured charity’ section on homepage and more• Built in Search Engine Optimisation so that websites are easily found when

entered into a search engine such as google.

What is Localgiving.com? (Show Video)

The Inspiration Behind Localgiving.comDonors want to be connected locally and via the internet

• Donors wish to give locally: those in UK who give to non-disaster charities wish to give to local charities

• Most individuals rely heavily on the web to search for topics of interest• The Younger generation of “givers” need to be engaged

There is significant growth in online giving• UK: JustGiving online donations: £150m in ’08; £200m in ’09

Source: Stein, Michael, ‘Online Giving Trends in 2009 and 2010’ in The Paperless

Choice Challenge (April 2010)

• Online revenue grew by 46% in 2009 compared to 2008. • In 2009, 46% of online revenue was processed during October, November, and

December. The month of December accounted for 30% of revenue and 18% of the transaction volume.

The Inspiration Behind Localgiving.com

Local charitable organisations face big challenges to survive and grow• Economic downturn is reducing donations and grants (grassroots ending April 11)• As many as 40% small groups not expected to survive• Need to engage cost effectively with donors and supporters

The Community Foundation Network had goals to address the above• Community Foundations (CFs) have extensive knowledge of local charities & CG• CFN wants to bridge the digital divide that restricts many local charities & CG

“The term 'charity' can be used to refer to any charitable organisation, whether registered or not. I therefore cannot see any objection to the proposals”.

Charity Commission – Dame Suzi Leather

The Localgiving.com team!

Chief Executive Executive Assistant

Head of Charity EngagementMarketing ManagerDirector of TechnologyExecutive Director

Charity Engagement ManagerDeveloperDeveloper

Pawel ProchetJames BoothTiade Williams

Phil PyattLea GarrettIan WilkinsonDoug Laughlan

Marcelle SpellerIntern – Paul De Freitas

Chris Dormer/Laura Packer

2 x Charity Engagement Interns

New Website

New Website• Search Pages

New Website• Charity Project

Page

New Website• Charity set-up

pages

New Website• Charity set-up

pages

The Localgiving.com/CF “Rapid Roll-Out” in 2010/11

What is the rapid roll-out?

• Localgiving.com is now live in 11 Community Foundations.

• Localgiving.com want to reach as many CF’s by the end March 2011.

Why is this essential?

• Sustainability of VCOs threatened by end of Grassroots, government cuts and dominance of online giving by large charities

• Sustainability of some CFs threatened by the same factors• To enable national PR and partnerships

Business Model: Revenuesa) Revenues shared between LG and CFs

• Transaction charges on donations − A 6% charge is made on donations (3% CF/3% LG & 2% credit card fee.

• Subscription fee from charities/CG (£60 per annum, (1st 3 months free) of which £20 goes to CF)

b) Revenues wholly to CFs• Vetting fee for charities/CG previously not known to or grant approved

by CFs

c) No cost to join other than resource requirements• CF resource involvement:

– Data cleansing of charity contact details– Selecting groups via Digits to be sent invites – Initial contact with groups to alert them of Localgiving.com

(LG automates invitations)– Approval and review of charity LG websites– Ongoing vetting, payments and communication

How a donation is distributed £30 DONATION EXAMPLE:

 

Donation                             £30.00

-2% avg card fees            £    .60

+ 28.2% Gift aid                   £ 8.40

- 6% CF/LG fees                £  2.30 (this is split £1.15 to CF/ £1.15 to LG)

=                                        £35.50 to the charity/Community Group

With Gift Aid

100% of the initial donation minus card fees (£29.40) sent to the charity/CG weekly

Only when Gift Aid is received from HMRC, CF & LG take 6% commission charge Remaining £6.10 Gift Aid is added to the charity/CG weekly payment run

Without Gift Aid

Donation minus card fees and 6% Commission fees (£27.60) sent in weekly run to charity/CG

Note: Without Gift Aid, commission totals £1.80

LG.com via PayPal

CFLocalgiving

HBOS Account

Charity/CG

b) All donations flow through CFs

Each CF will need to open an HBOS account to fit in with the LG banking application

LG will process Gift Aid and capture donor declarations on behalf of the CF for every charity

HMRC Gift Aid (up

to 6 weeks later)

3% CF Own Account

NB – 3% CF commission will come via Gift Aid (if selected ) or from their HBOS account if not

3% LG Account

What you need to do – 8 weeks to launchLocalgiving.com are phasing the sign up process to make it quicker and easier in 2 week periods.

Phase 1• Introduction to sign-up including video and contract to be signed on approval from

the board.

Phase 2 – Revenue Set-Up Pack• This includes all the documentation to set up a CF – Localgiving.com HBOS

account, HMRC form to allow Localgiving.com to claim Gift Aid on the CF behalf & PayPal documents to allow for secure transactions.

Phase 3 Pack• This will have advice about how to cleanse your data to allow for the

Localgiving.com invitation process. Also included will be an (Ops Manual, Training Pack, Brand Identity, Best Practice Guide and how the invitations process works).

Phase 4 & 5• During this phase your would invite 5 – 10 charities/CF to submit their own web

pages & provide a bank statement (confirming their bank details) in order to enable them to receive donations.

• You can then work towards increasing the amount of charities/CG until you meet your critical mass (pre-agreed with Localgiving.com)

• Local launch & media, UK LG corporate partnerships.

National Launch Initiatives To Date

Localgiving.com have been working with the following partners toward a high profile and successful national launch.

• Channel

• Partnerships – • National Corporate Sponsorship

• National Corporate Training Partners

• Financial Times