Rapidata, the UK’s leading processor of direct-debit charitable and commercial transactions, has just released a massive study of monthly giving in the UK, with a special focus on 2008 to 2009 comparisons.

To put this in context, 37% of donors in the UK are monthly givers, and such giving amounts to 31% of the giving total.

For fundraisers in the UK, the chief news was that monthly direct-debits are on the rebound, with monthly cancellation rates dropping steadily in 2009 from a January high of 5.6% to December’s low of 2.6%. This, plus the fact that direct-debit giving rose 18% in 2009 over 2008 amongst the 117 charities studied, is taken to indicate that UK fundraisers have seen the bottoming out of recession-induced reductions in giving.

Interestingly, the biggest rebound occurred in the arts & culture sector, a sector that has taken one of the biggest recession hits in the US market.

Now, US fundraisers, get ready to be truly envious …

The average monthly direct-debit gift in the UK is £11.95, representing an annual contribution in US dollars of roughly $220.

An interesting exercise for US fundraisers might be to benchmark your monthly giving rates, amounts, cancellation history etc against the UK direct-debit experience.

The report notes that only 8% of direct-debit givers cancel their gifts by contacting the charity (most cancel with their bank). This does put a premium on systematic donor communications programs.

Very interesting study. Well done rapidata.

Tom

P.S. Thanks to Jenny Turner for the heads-up.

This article was posted in: charities, direct marketing, Don't Miss these Posts, donor retention, fundraising, loyalty, marketing metrics, nonprofits, online fundraising, research.
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