Is cashless fundraising the future?

Unsurprisingly, the pandemic has stimulated a large and sustained increase in cashless giving and the received wisdom appears to be that it is here to stay. This is likely to include:

• More digital and hybrid fundraising events.

• Continued growth of social media fundraising.

• Sustain giving through websites and apps, including crowdfunding sites.

• Increased availability and use of contactless card donations.

But is there evidence to support the receive wisdom or is it, like so many planning assumptions at the moment, little more than crystal ball gazing?

It seems that in this case there is some good supporting evidence. For a start, the number of voluntary organisations using digital technology for service delivery and fundraising has doubled over the pandemic. This means that staff and volunteers have learned the digital skills they need to make a success of these fundraising channels; probably the biggest barrier that faced digital fundraising the pandemic. Moreover, while total giving has largely held up, the proportion of donations made in cash fell from around 50% in 2019 to below 10% in 2020 and almost 20% of donations came through social media.

It is, perhaps, not surprising that younger supporters are more likely to give online (websites, apps and social media), while older supporters are more likely to use contactless cards and standing orders. However, in 2021, there was an increase in over 55s giving online as well as using cards, and 44% of older donors indicate a willingness to donate through social media (albeit that figure is 92% for younger donors). The preference for trusted third party platforms (such as Just Giving) remains strong (as opposed to direct giving through a charity’s website).

These trends also offer significant opportunities for more effective fundraising practice. For example, online giving promotes take up of Gift Aid, shown by the substantial 61% rise in Gift Aid claims in January 2021. Perhaps more importantly, online giving provides charities with the option of suggesting typical (higher) donation amounts either directly or by profiling what others have given. The research suggests that this “anchoring” can have a strong influence on the amounts people choose to give.

Cashless giving, therefore, does appear to be a big part of the future and one with opportunities; even the Fundraising Regulator thinks so, because it will be reviewing the Code of Fundraising Practice in 2022 with a focus on digital fundraising.

If you'd like to know more about how we can help smaller charities with fundraising challenges please contact us at julian@almondtreeconsulting.co.uk to arrange a free initial telephone conversation.