The not-for-profit fundraising platform GivenGain has launched a free, automated Gift Aid service for charities.

Charities using the platform could previously manually claim Gift Aid but GivenGain said it had automated the process to make it easier for organisations to benefit from the tax break. 

GivenGain said the move to offer free Gift Aid processing could save the UK charity sector up to £80m a year. 

It would also remove the risk of incorrect Gift Aid submissions, GivenGain said. 

The platform, which is subscription-fee for charities, charges a 5 per cent platform fee plus a card transaction fee on donations. 

Donors have the option to pay those fees and GivenGain said 84 per cent of donors choose to do so. 

The fundraising platform JustGiving typically charges 1.9 per cent on most transactions plus 30p, and 5 per cent for the optional processing of Gift Aid. Charities also pay a monthly subscription fee to use the service. 

Will Irwin, UK & Europe lead at the GivenGain UK Foundation, said: “As a non-profit platform, it’s vital to us that charities receive 100 per cent of the funding they’re entitled to. 

“Some charities might not be aware of the hidden charges levied for processing these claims, so we want to shine a light on this issue and empower charities to maximise the funds they receive. 

“By championing an ‘All Give, No Take’ approach, we’re proud to be able to help charities put every pound of Gift Aid back into the causes that need it most.”