Debit cancellations fell to an all-time high this summer, figures show
The cancellation of direct debit donations to UK charities fell to an all-time high over the summer, new figures show.
Data from charity payment company Rapidata, released today, shows the average cancellation rate for direct debits was 1.32% in July, the lowest figure since Rapidata began collecting data. in 2003.
The company said the new low figure, which was previously 2.45% in July 2019, was largely due to the fact that there had been a much lower level of donor acquisition activity due to virus and that most cancellations occurred immediately after a donor enrolled.
But the company also said the numbers indicated committed supporters remain loyal to chosen charities.
The all-time low followed an increase in withdrawals of direct debits in March, when it hit 3.09% as the UK lockdown was imposed.
The cancellation rate then fell to an average of 1.4% between May and September, which Rapidata said was a “staggering drop” from the same period last year, when it was 2.3%.
Figures from Rapidata show that regular online donations set up over the period grew 37% over the same timescale last year, with charities stepping up their digital fundraising efforts.
Scott Gray, Head of Payments for Rapidata and Head of Payments for its parent company, Access Group, said: occur immediately after enrollment – more positively, this also shows a consistent trend that committed supporters continue to give to causes close to their hearts. ”
Dan Fluskey, policy officer at the Chartered Institute of Fundraising, said efforts by charities to develop relationships with supporters are paying off.
“In recent years, we have seen a real focus of charities in developing relationships with supporters,” he said.
“This latest research shows not only that this work is paying off, but also how essential it will continue to be in encouraging and maintaining consistent support as we go through the difficult months ahead.”
The data is based on figures from over 600 charities which represent around 21 million transactions in a typical year.
A report on the results can be found here.