(9 March 2010 – UK) Virgin Money and Sir Richard Branson have launched a charity credit card that will see Virgin’s finance arm donate 1.02 percent of all spending to five charities of the cardholder’s choice, including low profile and specialised ones.The 1.02 percent donated to the charities far rivals other leading charity cards on the market, which only donate around 0.25 percent and normal already have a pre-selected major charity.
A spokesman for Virgin Money said that the ability to chop and change charities if they wish is key for customers, as an example, the recent earthquake disaster in Haiti where people are keen to help in cases of dire need, the flexibility of this card ensures they can react quickly.
Virgin also said that this is the first card that also allows the cardholder to add Gift Aid to their donation, increasing the amount the chosen charities get by a further 28 percent.
It is estimated that charity credit cards generate an estimated £16.7million (A$27 million) a year in donations, making them a vital source of income for many organisations.
When consumers take out the card, the company will automatically set up a Virgin Money Giving account, allowing them to select who will receive their cash.
Virgin Money Giving is the group’s not-for-profit online charity fundraising service. This is free for fundraisers to use but charges charities fees, which the company says are the minimum needed ‘to cover the running costs of the site’.