More than 2,000 charities helped to process direct debit donations by CAF Donate

26 June 2015

Charities have raised almost £35 million for good causes through a card payment and direct debit processing platform rolled out by the Charities Aid Foundation 12 months ago.

CAF Donate was launched with the aim of helping the tens of thousands of small and medium sized charities who had been priced out of being able to accept non-cash donations.

There are now more than 2,000 charities using the payment platform, which allows voluntary organisations to collect direct debits, set up online fundraising pages and process telephone and postal payments without having to pay a fixed cost.

Figures published today show that:

  • The total amount donated via CAF Donate so far is £34,847,109.
  • Direct debit donations have been set up by 88,294 people, while there have been 91,081 one-off donations.
  • The average one off donation made via the CAF Donate page is £89. This increases to an average £107 donation through a CAF Donate widget embedded on a charity’s website.

Prior to the launch of CAF Donate, research found almost 9 in 10 charities were unable to accept direct debits despite this being the most popular way for people to donate. This means as many as 150,000 charities could have been missing out.

More than £1 billion is donated to charity by Direct Debit every year, with CAF’s UK Giving 2014 report showing that one in three people choose to give to charity in this way.

Chris Allwood, Senior Product Development Manager at CAF, said:

“People now increasingly use card payments and direct debits as their preferred way of paying for things and giving to good causes.

“While larger charities are well equipped to handle this, thousands of smaller organisations have previously been priced out of being able to accept money in this way through a combination of processing fees and admin costs.

“It was our hope that CAF Donate would help level the playing field for smaller charities. It is hugely encouraging that there are now more than 2,000 charities using it  to process millions of pounds worth of cashless donations. We expect that number to grow significantly as more and more charities find out about it.

“Prior to its introduction, cashless payments were not an option for most charities. We now want every charity to have the option to receive donations in this way.”

CAF Donate allows charities to accept card payments and direct debits without them having to pay a monthly charge or set up fee, as they would with a High Street bank. The risk for charities of not being able to cover their costs has been removed with the platform instead funded through a small fee on donations. CAF also offers to reduce admin work for charities by automatically claiming Gift Aid on eligible donations.

Approximately 100 new charities are currently signing up to use CAF Donate every month.

The amount given through CAF Donate considerably exceeds the average UK donation of £39, calculated in CAF’s UK Giving report.

Research also shows that one in 20 donations through the platform is made via mobile devices, with these types of donations expected to keep growing.

Notes to Editors

The Charities Aid Foundation helps people and businesses give to the causes they care about and provides financial services to support charities. More information about CAF Donate can be found on our Charity Fundraising section.
 
£1.2 billion was donated to charities by Direct Debit in 2014, according to BACS 

Research published by the UK Payments Council in 2012 found that 91% of charities did not accept direct debits.
 
ENDS

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