Lack of innovation in charity sector could restrict future growth

According to new research by Barclays, 20% of charities in the UK do not have the facility to accept online donations and over a third of charities are unable to accept donations via text.

| 28th May 15

According to new research by Barclays, 20% of charities in the UK do not have the facility to accept online donations and over a third of charities (38%) are unable to accept donations via text.

This is despite the majority of these charities (61%) being of the view that online donations will continue to increase over the next three years.  For over 90% of charities, ease and convenience of transaction is the main perceived advantage for people donating online.

For those that don’t accept text donations, a quarter say it is not relevant for their charity or their target audience and 15% say they haven’t even considered it.  A further 16% say they just don’t have the time or technology to implement the facility.

David McHattie, Head of Charities at Barclays, said: “The rise of online across all business areas, including the charity sector, is very hard to ignore. Over the past few years, online charitable campaigns like the ‘ice bucket challenge’ for ALS, or the no make-up selfie in aid of Cancer Research have seen resounding benefits from online engagement. So it’s surprising to still see that a fifth of UK charities appear resistant, particularly as most are in agreement that online fundraising is the way forward and that their supporters are more likely to donate online.

“Those charities without the ability to process donations via text or online state it is because not everyone uses the internet or has access to a computer.  While this may be the case for some now, more and more people are growing accustomed to online and this will only increase. Our research shows that around one in ten mobile device users are making mobile payments, highlighting how such new technology is already being adopted1. Enabling donations via text and online can also draw in younger donors who might not have given to charity before as our research also shows that  64% of 25-34 year olds predict that they will use mobile devices more regularly for m-commerce over the coming years.  

The charity sector believes there will always be a place for traditional fundraising alongside online.  However, organisations that fail to embrace online and mobile payments risk limiting their fundraising potential and could restrict future growth”.