Direct Debit helps charities and fundraising organisations cut the costs of fundraising, reduce administration and more importantly retain regular donors.

Many charities now offer Direct Debit as a payment method – offering a variety of sign-up options including over the telephone, on the high street and more increasingly, online sign-ups. Last year, 58 million donations totalling £1.1 billion were made to UK charities using Direct Debit – more than any other payment method. Yet, a staggering 91% of charities across the country are still not offering Direct Debit as a payment method, which suggests that some charities don’t realise they can access the Direct Debit scheme.

But what makes Direct Debit such a great option for charities?

Direct Debit cuts transaction fees and administration costs

Using credit or debit cards typically costs around 2-3% per transaction + a flat fee of 30p plus. In comparison, Direct Debit typically costs much less. First Capital Cashflow’s solution, Your Donation, starts from just £0.35 pence a transaction.

Direct Debit increases donations

Bacs Payment Schemes recently found that 58 million Direct Debit donations – worth £1.1 billion were donated to charities; an increase of 2 million Direct Debit donations from the year before. It’s clear from this that there’s great potential to generate income on a regular basis.

Direct Debit reduces accounting and payment administration

Taking payments by cheque, cash and standing order is a huge administrative burden for charities and fundraising organisations, particularly as there is no automated reporting system. Many of our charity clients switched to Direct Debit with Your Donation because they wanted to streamline their costs and guarantee receipt of regular donor income.

Direct Debit makes giving easier

A one-off donation of £300 is daunting for most of us while £20 a month seems much more reasonable. Perhaps as a result of this, last year the average Direct Debit donation totalled £181, or around £15 a month, while the average cash donation was just £5. Direct Debit is also cheaper and easier to process than other payment methods making it more manageable for you too.

First Capital Cashflow’s charity solution, Your Donation is a unique low-cost solution that gives charities the ability to capture and initiate Direct Debit instructions either via a paper sign-up facility, over the phone or an online web page, which can be integrated into a charity’s website and mobile devices.

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