Charity Direct Debit cancellations at lowest rate since 2006
Rapidata’s Charity Direct Debit Tracking Report 2014 has indicated that donor retention is on the rise after finding a dramatic fall in charity Direct Debit cancellations to the lowest annual average rate since before the recession.
Rapidata’s Charity Direct Debit Tracking Report 2014 has indicated that donor retention is on the rise after finding a dramatic fall in charity Direct Debit cancellations to the lowest annual average rate since 2006, before the recession.
The report compiles regular giving data from more than 500,000 monthly Direct Debit donation transactions. It maps cancellations throughout 2013, plotting the typical cancellation cycle, making comparisons with previous years and identifying key events that can impact cancellation behaviour.
Scott Gray, Managing Director at Rapidata Services Plc said: “Looking at cancellations from the last few years, we can see the catastrophic impact of the recession on charities’ regular giving income streams. With continued investment in donor stewardship, charities fought through the recession, driving down cancellations to create the most positive environment for regular giving ever seen before. Cancellations plummeted in 2013 and this is the clearest sign yet that charities’ investment in stewardship, along with the backdrop of a more robust economic landscape, is succeeding in encouraging supporters to keep on giving.”
Mark Astarita, Director of Fundraising at the British Red Cross and Chair of the Institute of Fundraising, adds: “History will show that UK fundraising weathered the storm of this last recession rather well and that this will have been done best by those who concentrated on regular giving. In January 2009, with the full roar of the recession ringing in our ears, 5.63% of Direct Debits were cancelled. By December 2013, cancellation rates were down to a remarkable 2.40%. The difference may only be a few percentage points but for charities as a whole those few points mean millions of pounds.”