A large bulk of income for charitable organisations comes from people making regular donations. For that reason, it makes every bit of sense to use a sustainable collection method that enables a consistent transfer of money with little input from the donor. Direct Debit is the simplest solution.
Luckily, it seems the majority of charitable organisations have taken advantage of this arrangement. According to London and Zurich, Direct Debit now accounts for 31% of all UK voluntary charity donations. In the last year, 58 million donations, worth £1.1bn, were made to UK charities.
The benefits of Direct Debit
Fundraising
Looking to save money where you can is important to any business, but it’s particularly crucial to charities. On average, a charity spends £0.12 on fundraising for every £1 they receive as a donation. Getting as many donors on board with Direct Debit as you can won’t only ensure a continuous stream of income; it will give you one less person to try and win over.
A cheaper alternative
Direct Debit is cheaper than the majority of collection methods, like credit and debit card. This is a great opportunity to throw incentives, discounts and prize draws into the mix to encourage people to sign up. For example, if you’re a charity-based leisure facility, take this opportunity to push out some membership offers.
Save time on admin
Using Direct Debits means you’ll always know in advance exactly when funds will be cleared and in your bank account. This greatly reduces the room for oversights and cash flow issues within the business. Beyond this, Direct Debits are automated. Never again will you have to worry about where money is coming and going, making it easier to plan to for the future.
Spreading costs
How many of us choose to pay that little bit extra and spread our outgoings rather than pay a large sum upfront? It’s the same story for your charity donors. £2 a week sounds much more appealing than £104 upfront. Once they’re signed up, that’s that. The money comes out of their account automatically.
Easy sign-up
Online joining provides another relief to pricey fundraising costs. Quick, convenient and easy, online joining portals like our FastDD give people the option to sign up on a range of platforms wherever they see fit. As long as there’s an internet connection, they can do it from the comfort of their couch or on their commute. This can even also be pushed out on various forms of marketing collateral. Best of all, it’s great for the environment!
Go one step further and get in touch with DFC. Our experts can manage your Direct Debits for you, improving collection rates, ensuring knowledgeable customer service for your donors and enhancing your bottom line.