Donor commitment to charities is at an all-time high, despite a tumultuous year for the sector, according to the direct debit processor Rapidata.
According to figures released today, the years 2014 and 2015 saw the lowest rates of direct debit cancellations by regular donors since recording began in 2003.
The organisation’s Charity Direct Debit Tracking Report 2016, reveals that average cancellation rates were 2.67 per cent for the year 2014 – the lowest on record – and 2.89 per cent for the year 2015 – the second lowest cancellation rate on record.
Figures for January 2016 are also promising, with cancellation rates of just 2.64 per cent. They compare to an average annual rate of 3 per cent and 4 per cent during the recession of 2008 and 2009.
Peter Lewis, chief executive of the Institute of Fundraising, said the report’s evidence “backs up what we have heard from our members”.
“Existing supporters are continuing to trust and support the charities they already give to. Charities will want to build on the fact that donors are sticking with the causes they support, doing even more to ensure donors’ needs are at the heart of how they fundraise,” he said.
Scott Gray, managing director of Rapidata said the figures indicate the “strength of the public’s connection with the charities they choose to support”, despite a tumultuous year for charities.
“The large majority of supporters have continued to give,” he said. "At the same time, the figures should be taken with caution as the last year has shown fundraising it cannot rest on its laurels.
"Whilst no long-term impact on regular giving from the fundraising crisis is good news for regular giving, we must note that the majority of media attention has been directed at recruitment channels – direct mail, telephone fundraising, sharing of data in prospecting – and that the importance of retaining and nurturing supporters has never been more important.”
A statement by Rapidata said the impact of last year’s sector-wide crisis “appears to have been limited when it comes to regular giving”.
Direct debit cancellations remained low between May 2015 and March 2016 – although there was a “more sustained” peak of cancellations during the summer months of July and August, it said.
But the organization also called for charities to be “mindful” following the results of the EU referendum.
“With the current economic turmoil, it is impossible to forecast the impact of the ‘leave’ vote,” the organization said.
“Rapidata will continue to monitor monthly rates for change, even though all signs so far look positive.”
