Regular Giving Grows for Third Consecutive Year in U.K., Fundraising Report Finds
“It’s great to have a first look at online Paperless Direct Debit regular giving and track growth in this area. It’s really encouraging to see 83% of online Direct Debits take up Gift Aid, a figure that adds yet more weight to the case for implementing online regular giving strategies. But there’s clearly more to do in this area, charities need to more actively promote their online fundraising.”
Adrian Sargeant, Professor of Fundraising at Bristol Business School and at the Center on Philanthropy, Indiana University-Purdue University Indianapolis, previewed the tracking report and responded:
“Another great report, packed full of genuinely useful information that fundraisers can employ to help them manage retention. While the data paints a largely optimistic picture of the regular giving landscape in the UK, it remains clear that charities are still losing an unacceptably high proportion of their regular giving file each year. There is therefore no place for complacency. As a sector we
need to continue to focus on donor loyalty, identifying ways in which we might add value for donors.
“We also need to get smarter at recruiting the right donors into our organisations in the first place, taking investment decisions in respect of acquisition that are guided by the return on lifetime value that would accrue and avoiding short-term and potentially misleading measures such as immediate ROI.”
Rapidata’s Charity Direct Debit Tracking Report provides not only the latest benchmark figures for Direct Debit cancellations (up to the end of March 2011) but a comprehensive analysis of regular giving. The statistics in this report are unique in this sector and only available through Rapidata’s independent research and analysis of its exclusive data.
- Volume of Direct Debit donations increase +7.8%
- Income of Direct Debit donations increase +9.8%
- Average Gift sees significant increase by almost £1 to £12.86
- Average Gift By Cause shows children’s charities shoot up to £15.01 from £13.11, while healthcare & medical research shows second biggest increase.
- Direct Debit donation cancellations lowest recorded since 2007 at 3.32%
- Online regular giving is popular among consumers: year on year growth: 36%
- Online average gift revealed at £8.09, with 83% taking up Gift Aid (AG: £11.39)
- Charities are losing income unnecessarily by treating all unpaids as cancellations. The majority of unpaid Direct Debits are due to ‘insufficient funds’ and 62.5% of Direct Debits returned as Refer to Payer were paid when re-presented the following month. Charities could save £1000s every month.