BT’s new website allowing charities to collect funds free-of-charge online has run into criticism from one of Britain’s leading social entrepreneurs. In this ‘Right to reply’ article, Robert Ashton, author of business guide How to be a Social Entrepreneur, looks at whether BT’s plans poses a threat to JustGiving…
The website – MyDonate – only passes on to charities the charges from credit and debit card companies and will be in direct competition with JustGiving.com.
JustGiving is a social enterprise that provides the same service but makes a small charge for its services.
“It’s a great shame that with all the technology and buckets of cash at BT’s disposal they choose to compete with an existing charity service rather than adding something of real value to the Third Sector and creating something totally new of their own,” said social entrepreneur Robert Ashton, who is the author of the best selling business guide How to be a Social Entrepreneur.
“We need social enterprises to behave entrepreneurially: that’s how philanthropy can grow. What incentive is there for others to follow the brave example of the team behind JustGiving?” he said.
“They created a new concept, they did the marketing legwork and they finally set it up to see it deliver them a return. JustGiving has made a colossal difference to the UK fundraising landscape and now, just as soon as things come good, someone comes along and tries to price them out of the market they’ve just created.”
BT has an obligation to invest at least 1% of its pre-tax profits in community and environmental programmes and last year spent around £26 million.
“Undeniably, increasing the amount of money available for charities is a good thing,” said Mr Ashton, “but with the financial muscle available to BT they could have created something entirely new that could have grown into something even more beneficial to the charity sector.”
“What they are doing goes against the grain of social entrepreneurship which should be collaborative rather than competitive. There is nothing wrong with social enterprises making reasonable profits,” he said.
BT described MyDonate as ‘a service that the charitable sector wanted, making it the first not-for-profit fundraising service not to charge a subscription fee, set-up fee or commission’.
Ian Livingston, BT Group CEO said that he hoped that MyDonate would increase the online donation market which, according to the Charities Aid Foundation, was only 7% of the £10.6 billion donated in the UK last year.
“BT should stand for Brilliant Thinking, not Bullyboy Tactics!” said Mr Ashton.
About Robert Ashton:
Robert Ashton created the Norfolk Community Foundation in 2005. It is now close to having a £4 million endowment. In the past year the foundation has distributed more than £1 million in grants to voluntary and community groups.
Robert is also a director of Ethecol – an ethical credit & debit card payments processing company which reduces costs for small traders and pays charities an introduction fee for circulation the company’s information.
He is also the author of 12 best selling business guides (including How to be a Social Entrepreneur – Capstone 2010 and Instant Entrepreneur: The Faster Way to Start-Up Success).
http://www.robertashton.co.uk/
