New research from GoCardless, the bank payment company, finds that 45 per cent of consumers say they donate regularly to charity today; representing only a slight drop from the 49 per cent who did so last year, despite continuing financial difficulty caused by rises in the cost of living.
The GoCardless study shows that, despite persistently high inflation and interest rates rising to their highest level in 15 years, almost two in three (63 per cent) consumers have still donated to charity within the past few months.
Encouragingly, 37 per cent of respondents plan to continue giving to charity even if they are under more financial pressure. These results show that a large proportion of UK consumers remain committed to supporting the causes they believe in.
The research, conducted by YouGov with a nationally representative sample of UK consumers, pointed towards technology as one way to help increase donations. Over half (52 per cent) of respondents say they would give to a charity again if the donation process is fast and easy, which is why platforms such as JustGiving are focused on innovation and implementing new payment solutions.
This is already a popular option for supporters, with 32 per cent of consumers reporting that they have some form of automated payment, such as a Direct Debit, set up to give to charity on a regular basis.
The research comes on the back of GoCardless’ sponsorship of the GoCardless JustGiving Awards, a partnership between the fintech and its long-time customer. The online fundraising platform, which has processed $9billion in donations to date, has seen firsthand how donors have adapted so they can continue to give, despite a tough macroeconomic environment.
‘More people choosing to give little and often’
Oliver Shaw-Latimer, senior director of payments and innovation at JustGiving, said: “As a result of the cost-of-living crisis, we’ve seen a change in the way in which people donate to charities and good causes, with more people choosing to give little and often.
“In response to that change in behaviour, there’s an exciting opportunity for new types of payment technology, such as those powered by open banking, to play a vital role in helping more funds get to charities quickly and cost-effectively.”
Pat Phelan, managing director and chief customer officer at GoCardless, also added: “Even though we’re all struggling with the rising cost of living, it’s hugely encouraging to see people continuing to give. Charities that keep on innovating, putting the donor experience first and looking for new ways to increase efficiency will stand a better chance of weathering these tough times and getting into a better position for the future.
“We’re proud to work with JustGiving and others in the charity space to transform their organisation through payments.
“One innovation we’re particularly excited about is open banking payments. They’re smooth and secure, which meets consumer demand for a fast and easy way to give. And because they move money directly from one bank account to another, it keeps costs low – so charities can retain more of the funds for the causes they support.”