More donors than usual have canceled their direct debits from charities since the onset of the coronavirus crisis, data from a charitable payments company suggests.

Rapidata, part of the Access group, gathers data on more than 600 charities and around 21 million transactions. It says that in March, the cancellation rate for direct debits stood at 3.09%, which is 41% more than in the same month last year (2.19%).

The tracker also saw a significant drop in the number of new regular donors, down 24.1% from March 2019.

The increase in withdrawal cancellations and the slowdown in new registrations have been particularly evident in the last two weeks of the month, suggesting that the coronavirus crisis is the most likely cause. Social distancing measures were first introduced in the UK on March 16 and the country went into lockdown a week later.

Rapidata said the decrease in the number of new donors could be related to both the fact that charities have focused on caring for existing supporters rather than acquiring new ones, and the suspension of the activities of face to face fundraising, which is a major source of donor acquisition.

While direct debit cancellation rates were generally higher in the first few months of 2020 compared to the same time last year, in March the gap was much more pronounced than in January and February.

Cautious figures estimate that the charitable sector could lose around £ 4.3bn in 12 weeks because of the coronavirus. While events and public fundraising were the first revenue channels affected, others, including bequests and individual donations, are also likely to record losses.

Pandemic having “a major impact on regular donations”

Scott Gray, Head of Rapidata and Head of Payments for The Access Group, said: “We have experienced a lag from the annual cancellation cycle that we would only expect following a mitigating event. Clearly, the coronavirus pandemic has had a major impact on regular donations to charities. Social distancing and lockdown in the UK has resulted in job losses and leave deals with many concerned about the security of their future earnings. Naturally, people will consider financial priorities and their ability to continue supporting chosen charities. “

He also said it was not yet clear whether the trend would continue in April.

“The rate for March is lower than the levels recorded at the height of the recession in 2008-09. It remains to be seen whether the lockdown measures put in place in March resulted in an accidental spike, as the majority of supporters immediately affected chose to cancel their donations within those few weeks, or whether cancellations will continue to pile up. just like the pandemic. ”