Cash still dominates charitable giving

Cash still dominates charitable giving

Two-thirds of charity donors used cash to donate in the past 12 months, despite the increasing availability of other forms of payment options, according to the annual Halifax Giving Monitor review.

The review is compiled using internal Lloyds Banking Group customer data and consumer research prepared on behalf of Halifax. The review states that few people have embraced the digital age when it comes to donating to good causes, with around only one in 10 charity donors opting to give by text (9%) or by online giving (13% in the last year).

The Halifax Giving Monitor shows that just over a third (36.5%) of customers have donated to charity by either direct debit, standing order, credit card or faster payment in the last year. The percentage of customers giving to charity by these identifiable methods has increased by 7.3% in the last year, amounting to £833million. During this time, 2.8million customers made regular donations by direct debit, averaging £82 per donor.

While payments through Just Giving, Virgin Money Giving and Paypal made up just 6.7% of identifiable customer spend in the last year, this is an increase of 12% on the previous year, when only 6% of identifiable spend was through these channels.

People over 65 are the most likely to donate through their bank account, with two fifths (40%) of customers in that age range making a donation in this way. The over 65s are also responsible for the highest donation amounts, averaging £96 per donor compared to £60 for all donors.

Nick Young, Head of Halifax Current Accounts said: “With ever increasing numbers of our customers choosing the convenience of online and mobile banking, it is surprising that many are not embracing the digital age when it comes to charitable donations, despite being a very generous nation.”

“Consumers clearly prefer the convenience of donating spare cash to charities, but those who like to make more regular donations should consider setting up a direct debit or standing order. This will allow people to plan their donations by choosing the amount, date and regularity of when they are made and may allow the charity to claim the tax back on the donation through gift aid”.

One in five (19%) charity donors admitted to donating more to charity in the last 12 months than they did in the previous year. Three quarters of charity donors (76%) are giving more or the same than they did before the economic downturn in 2008, but one in five (19%) continue to give less. Only one in 10 (12%) admitted to giving less to charity in the last 12 months.

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