Generous Brits’ charity donations buck the recession
An overwhelming nine out of ten (86%) Brits are defying the recession by donating to charity according to new research from PayYOURway.org.uk, the education campaign for payments. People donating to a charity close to their heart are some of the most regular givers, with more than half of them (62%) donating once a month or more often.
The average donation equates to £100 per year, with those giving after a windfall like a bonus or inheritance stumping up almost double that, at £180 each. Despite the continuing pressures on household incomes, more people are planning to maintain or increase their charitable giving next year, compared to those planning to cut it*.
Fundraising friends are top draw for donations
The most common incentive for donating is to sponsor a fundraising friend or relative, with 44% of people saying they give in this way. The second most popular method is making ad hoc donations in collection tins (34%), followed by those who regularly support a favourite charity close to their heart (33%) and supporters of seasonal appeals such as Red Nose Day (32%).
Unsurprisingly cash is the most common payment method for donations (six out of ten give notes and coins), although regular givers are more likely than others to favour the convenience of Direct Debits. The research also found that new ways to donate such as third-party fundraising websites (15%) and text message giving (6%) are becoming popular.
Gift Aid - A missed opportunity?
Just over half (57%) of those surveyed were aware that Gift Aid allows charities to reclaim basic rate tax on donations they receive, but confusion over how this benefits charities remains. Almost a quarter (22%) admitted they don't know how Gift Aid works at all, whilst others incorrectly thought that the Government would double any donations made, and that Gift Aid only applied to cash donations.
Fewer than one in five (18%) say they always add Gift Aid to their donations, and just under one in 10 (7%) say they choose not to. Research by the Charities Aid Foundation** estimates that good causes are missing out on £700 million worth of Gift Aid each year. PayYOURWay.org.uk has teamed up with several charities, starting with HOPEHIV payyourway.org.uk/charity/charity-focus-hopehiv/, to host a blog explaining the real-life difference the extra money makes.
Sandra Quinn from the PayYOURway.org.uk campaign comments: "It's fantastic that so many people are keeping up their charitable donations in spite of these tough economic times. That's all the more reason to maximise donations with Gift Aid and choose a payment method that makes the extra money as easy as possible to claim."
Pay YOUR Way reveals the Find Your Way to Donate Guide
PayYOURway.org.uk has launched an online guide designed to help people find their best way to donate to charity. From advice on Gift Aid to donating on the go and spreading your payments across different worthy causes, the guide can be accessed via payyourway.org.uk/charity/. The site has also recently launched a guide to online banking and a comprehensive glossary of payment terms.
Sandra Quinn continues: "It's easier to claim Gift Aid on some payment methods than others - for example, online you can usually claim it with just one click, but ad hoc donations by cash or cheque can miss out. Anyone confused about Gift Aid can maximise their donation with the new PayYOURWay giving guide at PayYOURWay.org.uk."