Recent data has found that one-off charitable donations have dropped due to the cost-of-living crisis. However, perhaps unsurprisingly since the start of the pandemic charities have reported a significant rise in digital donations.
One-off charity donations decrease
Research from the Charities Aid Foundation (CAF) survey containing 1,023 respondents found that 9% of people did not give one-off donations in September because of the cost-of-living crisis. Furthermore, 6% said that they have either reduced or stopped regular donations to charities because of the cost-of-living increasing. The average monthly donation also decreased from £67 in August to £51 in September.
Digital charity donations have increased
In more positive news, charities have seen an increase in digital donations in the last few years according to a survey conducted by Barclays Corporate Banking involving 75 senior managers of large charities. This survey found that 75% of these managers had seen a ‘significant increase’ in digital donations. Further research found that 33% of adults say that they would be more likely to donate to a charity if they accepted online transactions.
Traditional methods of donating are still important
It is important to note that traditional donation methods still remain important with 47% of people preferring to donate in cash compared to 48% using digital channels. However, it is expected that the amount of people preferring to donate via digital channels will continue to increase.
Charities looking to improve digital donations methods
Over the last 12 months, over 80% of charities had received donations via their website. Over the next 12 months, the majority of charities have said they will be looking to improve their digital payment methods.
How can we help?
At Hawsons we have a dedicated team of charity & not-for-profit accountants at our offices in Sheffield, Doncaster, and Northampton.
Our dedicated team fully understands the complex, ever-changing regulatory requirements of the charity and not-for-profit sector. Irrespective of your size we wish to support you to maximise the benefits you could achieve through our specialist professional advice.
Charities & not-for-profit organisations are currently facing extensive changes in their regulatory and legal framework. Given the additional pressures on fundraising, complex tax regimes, internal risk exposure, and stakeholder demands, it has never been more important to obtain specialist professional advice.
Free initial meeting
Simon Bladen
Partner
Paul Wormald
Partner, Doncaster
Richard Burkimsher
Partner, Northampton
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