Cost of living crisis not stunting charity donations as 44% of Brits say they will continue to give (but call for easier ways to donate)
Last editedNov 20223 min read
Research comes as GoCardless uses open banking to power faster and easier donations for The Trussell Trust and Charity Right
77% of consumers believe card providers should waive fees when collecting charity donations
51% wish making a donation was as easy as making a payment to their favourite retailer
41% would give using open banking if charities could keep more of their donation
London, 29 November, 2022 - Though the whole country is facing incredibly tough financial times, Brits still want to give back and help those in need as 44% plan to continue to donate to charities amidst the ongoing cost of living crisis.
However, according to research from YouGov on behalf of GoCardless, a global leader in direct bank payment solutions, UK consumers want better ways of making donations so that charities stand to benefit more from their fundraising efforts.
This includes wanting to see certain payment providers step up and change the way they manage and process charity donations. A huge 77% of Brits believe that card companies should waive fees when collecting donations for charities, which range between 1-3% in the UK and are payable by charities.
Added to this, consumers want more streamlined ways of donating as over half (51%) say they wish making a donation was as easy as making a payment to their favourite retailer. A similar proportion (50%) admit that they are also more likely to give to a charity again if donating is fast and easy. Charities may therefore have a greater chance of increasing new and repeat donations if they can elevate the ‘checkout’ experience for supporters online.
Brits are also open to new ways of engaging with charities, with the research finding that many are willing to change their donation habits if it can help to make a difference. Three-fifths (59%) say they’d explore alternative ways of making donations, including trying out new technology, if more money goes directly into charities’ coffers. Additionally, 41% say they are likely to use open banking if it means that charities can keep more of their donation.
Duncan Barrigan, Chief Product Officer and Chief Growth Officer at GoCardless, said: “The cost of living crisis is putting pressure on us all but it’s promising that many are still finding ways to donate to those in need. While there are people who will always give to causes close to their heart, the research suggests that by making the process easier and exploring consumers' openness to new technologies, charities can attract repeat donations and also keep more of the money donated to them.
“Open banking can tick both of these boxes since it powers faster, safer and more cost-effective ways of collecting charity donations. We hope our work with The Trussell Trust and Charity Right will help to prove the benefits that open banking can deliver and show others in the industry how easy it is to implement, driving a shift in the charity sector.”
Sajad Mahmood, CEO of Charity Right said, “At Charity Right, we provide essential school meals to children in the most neglected parts of the world. We have been doing this for seven years and wouldn't have been able to achieve any of the successes without the donations of our loyal supporters. Open Banking and Variable Recurring Payments are the next stage in the evolution of account-to-account payments, offering our supporters and us very much-needed added security, control, and flexibility over our finances. This couldn't have come at a more fitting time with the backdrop of the cost of living crisis. This innovation in the charity sector is something that we're really excited to embark on.”
The Trussell Trust, a charity supporting over 1,200 food banks, has partnered with GoCardless to enable donors to make one-time donations via Instant Bank Pay. Additionally, GoCardless’ work with Charity Right marks the launch of one of the first ‘non-sweeping’ Variable Recurring Payments (VRP) pilots in the UK. Consumers who bank with NatWest Group are able to donate to Charity Right through VRP capabilities powered by GoCardless. By donating through GoCardless, 100% of the funds raised will go to charity.
GoCardless is also taking part in the #GivingTuesday social media campaign launched by Open Banking Expo and the Open Banking Implementation Entity (OBIE) to showcase how open banking can help charities and not-for-profit organisations unlock new fundraising opportunities.
Notes to editors All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2014 adults. Fieldwork was undertaken between 22nd - 23rd November 2022. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).