Number of Direct Debit donations rises to 60 million in 2014
New figures from Bacs reveal two million more charitable donations were made by Direct Debit last year than in 2013.
Covering the 12 months up to the end of December 2014, processing data from Bacs Payment Schemes Limited (Bacs) – the people behind Direct Debit in the UK – shows the total number of Direct Debit donations made to good causes grew to over 60 million, up from 58 million during the previous year.
This growth in volume has fuelled a year-on-year increase in value of £48 million, or 4.1 per cent – with over £1.2 billion in total donated this way in 2014. Since 2011, the number of Direct Debits being paid to charity has increased by six million, or around 11 per cent, once again highlighting the continued importance of the payment method to the sector.
Bacs’ data also offers an insight into those causes buoyed by Direct Debit giving in 2014. Among those benefiting were charities in the environment sector, which saw a rise in the number of these donations of 7.1 per cent, while animal causes experienced a 5.6 per cent increase, translating into a value uplift of 5 per cent and 6.2 per cent, respectively.
When it comes to the value of Direct Debit donations, it was housing (9.6 per cent) and old age (9.4 per cent) charities which saw the biggest growth last year, thanks to a rise in volume of 3.9 per cent and 2.2 per cent, respectively.
Bacs’ charity sector specialist, Graham Callaghan, said: “With 60 million donations made by Direct Debit in 2014, generating over £1.2 billion, these figures again underline the popularity and effectiveness of Direct Debit as a way of giving regularly.
“We know that automated payments are cost-effective for charities, as they are cheaper to process than the likes of cash and cheques, while they are also easy and convenient for those donating. Converting supporters to Direct Debit also increases retention rates, impacting on long term collection levels.”