Despite financial challenges, 45% of consumers continue regular charitable donations, a slight dip from last year’s 49%.
Despite ongoing financial difficulties brought on by increases in the cost of living, 45% of consumers say they donate to charity regularly nowadays, according to new research from bank payment startup GoCardless. This is only a minor decrease from the 49% who said the same thing last year.
According to the GoCardless report, 63% of consumers have made charitable donations in the last few months, even in the face of consistently high inflation and interest rates that have reached their highest point in 15 years.
Interestingly, 37% of respondents said they would keep donating to charities even if their financial situation worsened. These findings demonstrate that a sizable segment of UK customers is still dedicated to helping the organizations they support.
YouGov’s study, which included a nationally representative sample of UK consumers, suggested that using technology could be one approach to boost donations. Because more than half (52%) of respondents stated they would donate to a charity once more if it was quick and simple to do so, platforms like JustGiving are concentrating on innovation and introducing fresh methods of payment.
Supporters already find this to be a popular alternative; according to 32% of customers, they often make charitable contributions using an automated payment method like Direct Debit.
The study is the result of a collaboration between the fintech and a long-time client, GoCardless and the GoCardless JustGiving Awards. The online fundraising platform, which has received contributions totaling $9 billion, has direct experience with how contributors have adjusted to stay in the giving spirit in spite of challenging macroeconomic conditions.
‘More people opting to donate frequently and in little amounts’
“We’ve seen a change in the way people donate to charities and good causes as a result of the cost-of-living crisis, with more people choosing to give little and often,” stated Oliver Shaw-Latimer, senior director of payments and innovation at JustGiving.
“There’s an exciting opportunity for new payment technologies, like those powered by open banking, to play a vital role in helping more funds get to charities quickly and cost-effectively in response to that change in behavior.”
GoCardless managing director and chief customer officer Pat Phelan also said, “It’s really encouraging to see people continuing to give, even though we’re all struggling with the rising cost of living.” Charities that never stop coming up with new ideas, prioritizing the donor experience, and searching for fresh approaches to boost productivity will have a greater chance of surviving this difficult period and improving their position going forward.
“We are honored to collaborate with JustGiving and other charitable organizations to use payments to revolutionize their operations.
We’re really enthusiastic about the innovation of open banking payments. They satisfy customer desire for a quick and simple method of giving because they are safe and smooth. Additionally, because they transfer money straight between bank accounts, they minimize expenses, allowing charity to keep a larger portion of the proceeds for the causes they support.
