Recession and crunch hit UK giving
A recent study has found that the number of UK donors cancelling direct debit donations has skyrocketed.
The number of people cancelling direct debits to UK charities spiked mid-2008 and has risen since then - hard proof of the effect of the credit crunch and recession on regular giving in Britain.
Alarming figures analysed up to January 2009 were released in a survey of six years of direct debit cancellation rates by direct debit processing bureau Rapidata.
The company's Charity Direct Debit Tracking Report 2009, revealed 54% more people cancelled their direct debits in July 2008 compared with the average pre-recession July. By December 2008 there were 67% more cancellations than the average December.
Rapidata managing director Scott Gray says the way monthly rates "skyrocketed" was so dramatic "they were not likely to have been subject to the same factors influencing cancellations before the credit crunch hit."
According to Gray, "if economic factors continue to drive cancellations rates, then charities need to take steps to reactivate the donors they have lost, and perhaps more importantly, prevent donors from cancelling in the first place."
This advice is particularly relevant in Australia, where we have yet to feel the full impact of global recession and can still take precautionary action.
To avoid regular giving drop-offs, Gray recommends a "culture shift" switching focus from donor acquisition to stewarding existing supporters.
The report also suggests methods to re-engage donors who have cancelled their regular debits. These include swift acknowledgement of the cancellation, offering alternatives such as lower-level regular giving, and attempting reactivation within six to 12 months maximum.
Source: Rapidata
F&P edition: Agenda e-bulletin - March 2009
