Ritika Janiya
Easyfundraising describes itself as the UK’s “biggest charity shopping site.” It has become known for enabling people to raise money for a variety of good causes-from major charities to local schools-generating commissions from online purchases. Since starting in 2005, it claims to have raised over £50 million for various causes. In fact, it even claims to be a “charity organisation” on Facebook.
But now serious scrutiny is finally hitting its website. EasyJet founder Stelios Haji-Ioannou has sounded the alarm over Easyfundraising’s practices. HajiIoannou, who famously fought to protect the “easy” brand, is unhappy about how the website uses the “easy” name. His lawyers argue that the site may mislead people into thinking it is a charity, when it is, in fact, a profitable business behind which is private equity.
It started when the Haji-Ioannou legal team filed a complaint with the Charity Commission. They said Easyfundraising’s description as a charity organization is misleading. As they told the court, only 13% of the causes listed on the website are registered charities. They considered the big misrepresentation as Easyfundraising claiming to be a charity.
I believe they can only make money by misleading the donating public that they are a charity-when in fact, they are a very profitable company backed by private equity,” said Haji-Ioannou.
But Easyfundraising insists they are not trying to trick anyone. It says it makes it clear on its website that it is a private company, and not some sort of traditional charity. They insist that the description “charity shopping site” was never meant to imply a claim of charity status itself but only to describe the nature of the service. The company also declared their commitment to making how it works as transparent as possible and to comply with the relevant fundraising regulations.
Despite the defense, some users do report mixed experiences. Indeed, Easyfundraising typically holds very positive reviews on Trustpilot-most reviewers give them four or five stars-but some people complain of constant emails asking users to spend money to donate, or specific purchases don’t qualify for donations. One user even noted, “I have been sent emails daily encouraging me to spend in order to donate. I have tried to unsubscribe several times.”
Easyfundraising’s chief customer officer, Alex Heasley, says small good causes – such as many unregistered charities – are a big part of what they do. “We don’t solicit donations. We provide a platform or technology for those donations to be raised. If people choose to shop via Easyfundraising, a donation can be raised for their cause.”.
Heasley also said the company’s classification on Facebook as a “charity organization” was because the site doesn’t allow for a more specific category titled “fundraising platform”. She added users can control marketing emails and notifications.
The group’s accounts reveal it is a profitable enterprise. For instance, for the year ended December 31, 2022, the Support Group (UK) – providing services for Easyfundraising – announced earnings of £9.3 million and a profit of £1.6 million. The Charity Commission, however, in an April letter to Easyfundraising, noted that although the site does disclose it is a for-profit company, some statements may be misleading. They are still reviewing the case.
Haji-Ioannou, who is fighting not only Easyfundraising but also other companies using the “easy” name, said Easyfundraising used the term “charity” as an unfair and misleading description. His easyGroup donates most of its profits to the Stelios Philanthropic Foundation, which was set up to support various causes.
Easyfundraising says that it has confidence in its operations and is optimistic of a favorable result in its lawsuit against easyGroup. The service sees the questioning from the Charity Commission as part of a wider campaign against it and it is confident its technology provides one means of helping to raise money for good causes. It welcomes any further queries from the commission.
A Charity Commission spokesman said: “We can confirm we have received correspondence raising concerns about a fundraising platform called Easyfundraising. We are currently reviewing the information available to us to determine if there is a role for the commission.
Clearly, the battle over Easyfundraising’s claims is far from over, with the Charity Commission continuing its review. The implications of this investigation may be huge in terms of changing how fundraising platforms are viewed and regulated into the future.
